An American investor is considering investing $1,000 in default-free 90-day Japanese bonds that promise a 290 annual nominal return The spot exchange rate is 102.19 per dollar. The 90-day forward exchange rate is 100.66 per dollar. The investor's annualized return on these bonds-if he or she can lock in the dollar return by selling the foreign currency in the forward market-will be Interest rate parity recognizes that when you invest in a country other than your home country, two factors affect your investment-returns on the investment itself and changes in the exchange rate. Which of the following would cause the overall return on your investment to be higher than the investment's stated return? The currency in which the investment is denominated appreciates relative to your home currency. The currency in which the investment is denominated depreciates relative to your home currency. 0 Your home currency appreciates relative to the currency in which the investment is denominated