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On April 29, 2014 a U.S. based investor bought a U.K. government 5 year zerocoupon bond with the principal of GBP 1,000. The investor knew

On April 29, 2014 a U.S. based investor bought a U.K. government 5 year zerocoupon bond with the principal of GBP 1,000. The investor knew that she will sell the bond in 2 years on April 29, 2016 and on April 29, 2014 she entered the forward contract to exchange the currency (GBP for USD) on April 29, 2016. What is the holding period return (in percentages) for this U.S. based investor?

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