Suppose a U.S. investor purchases Japanese 12-month government bonds with 100 U.S. llars when the exchange rate is 110 Japanese yen per dollar. The Japanese 12-month government bonds pay 5% interest rate. After 12 months, the exchange rate equals 105 Japanese yen per dollar. What is the total dollar return on Japanese government bonds at the end of 12 months? Select one: O a. $100 O b. $125 O c. $105 d. $110 Relative PPP indicates that Select one: O a. the exchange rate between any two currencies is equal to the ratio of their price levels b. the percentage change in the exchange rate is equal to the inflation difference between the domestic and foreign countries c. relative prices determine exchange rates d. the same good sells for the same price internationally Clear my choice