If Brazilian bonds pay an interest of 10% a year and the Brazilian currency (Real) is expected to depreciate by 8% against the US dollar in the coming year. What is the interest rate paid by the US bonds?

a.

The US bonds pay an interest rate of 2% per year

b.

All of the answers here are incorrect

c.

The US bonds pay an interest rate of 8% per year

d.

The US bonds pay an interest rate of 18% per year

e.

The US bonds pay an interest rate of 10% per year