5) Suppose you purchase a 10-year AAA-rated British bond for par that is paying un .. coupon of 9 percent and has face value of 1000 British Pounds (). The spot rate is USS . At the end of the year, the hond is downgraded to AA and the vield increases to il percent in addition, the new spot rate becomes US$0.985 for . What is the loss or gain to a British investor who holds this bond for a year A) -11.07% loss B) -7.14% loss C) -5.32% loss D) -2.07% loss E) -1.08% loss Answer Here