From Jan 2008 to Jan 2009 the British pound to U. S. dollar exchange rate increased from 1.9702 pounds per dollar to 1.4462 pounds per dollar. A U. S. based investor buys a one-year pound denominated bond for $2,000 in Jan 2008. One year later the bond provides 4% rate of return in yen. What is the rate of return in dollars?

26%

7%

-7%

-26%