A zero-coupon French bond promises to pay 100,000 in five years. The current exchange rate is $1.50 = 1.00 and inflation is forecast at 3% in the U.S. and 2% in the euro zone 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?

Select one:

a. 65,196.13 = $97,794.20b. 62,092.13 = $93,138.20c. none of the above