2. The return from investing in foreign assets is affected by the performance of the foreign assets and the fluctuation in the exchange rate of the foreign country. Using the information given below, calculate the rate of dollar return from an investment in a 5-year British Treasury bond with face value of 100 and pays 5% coupon which you bought year ago and sold it today: Price of British bond year ago 101 Price of British bond today 103 British pound exchange rate last year: $1.2800/ British pound exchange rate today: $1.2950/