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The interest rate on a 1 - year Canadian bond is 4 . 5 % . The current exchange rate is C $ 1 =

The interest rate on a 1-year Canadian bond is 4.5%. The current exchange rate is C
$1= US $0.75. The 1-year forward rate is C$1= US $0.80. The return (denominated in
US$) that a U.S. investor can earn by investing in the Canadian security is %.
A)11.4
B)11.5
C)11.6
D)11.7
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