A zero-coupon British bond promises to pay 100,000 in five years. The current exchange rate is $2.00 = 1.00 and inflation is forecast at 3% in the U.S. and 2% in the U.K. per year for the next five years. The appropriate discount rate for a bond of this risk would be 10% if it paid in dollars. What is the appropriate price of the bond?

ANSWER: $130,392 I Need to know how to get to this answer, as detailed as possible. thank you!