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Suppose a bond issued by the European Central Bank and denominated in euros pays 2 % per year. Today the exchange rate is 1 .
Suppose a bond issued by the European Central Bank and denominated in euros pays per year. Today the exchange rate is dollars per euro. It is expected that the exchange rate in one year will be dollars per euro. What is the annual dollar return on this bond?
A percent.
B percent.
C paticent.
D percent.
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