Assume that you do not have money, but you can borrow in the domestic economy at $2\%.$ You have the option of buying a domestic bond that pays $5\%$ at maturity or buying a foreign bond that pays $4\%$ at maturity. All the bonds mature in one year. You expect today that the foreign currency will appreciate by $20\%$ at the time the bonds mature. Then,

A$)$ You would buy the domestic bond since the net return of the operation would be approximately $3\%$ whereas the net return of the foreign bond would be $-16\%.$

B$)$ You would buy the domestic bond since the net return of the operation would be approximately $3\%$ whereas the net return of the foreign bond would be $-18\%.$

C$)$ You would buy the foreign bond since the net return of the operation would be approximately $22\%.$

D$)$ You would buy the foreign bond since the net return of the operation would be approximately $24\%.$