Suppose the 6-month risk-free rate of return in the United States is 5%. The current exchange rate is 1 pound = US$2.05. the 6-month forward rate is 1 pound = US$2. The minimum yield on a 6-month risk-free security in Britain that would induce a U.S investor to invest in the British security is _____.

a. 5.06% b. 6.74% c. 8.48% d. 10.13%

(The Answer says D. 10.13%, but I keep getting 7.6%. Can someone explain why it is D? Thank you!)