The cost of one-year U.S. dollar CDs is 8 percent, one-year U.S. dollar loans yield 10 percent,

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The cost of one-year U.S. dollar CDs is 8 percent, one-year U.S. dollar loans yield 10 percent, and U.K. pound loans yield 15 percent. The dollar/pound spot exchange rate is $1.50/£1 and the one-year forward exchange rate is $1.48/£1. Are one-year U.S. dollar loans more or less attractive than U.K. pound loans?

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