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6 . You are considering purchasing $ 2 0 , 0 0 0 worth of British pound denominated CDs . The current exchange rate is

6. You are considering purchasing $20,000 worth of British pound denominated CDs. The current exchange rate is1=$1.60. You plan on investing for six months. According to current forecasts, in six months time the exchange rate should be1=$1.55. You desire a true 7% APR. What is the minimum pound CD APR you would require to make the investment (to the nearest basis point)?
a)13.68%
b)12.72%
c)12.48%
d)13.44%
e)11.75%

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