Take the case of a U.S. Firm Thai wishes to invest some funds (U.S. dollars) for a

Question:

Take the case of a U.S. Firm Thai wishes to invest some funds (U.S. dollars) for a period of one year. The choice is between investing in a U.S. bond with one year to maturity, paying an interest rate of 2.75 percent, and a U.K bond with one year to maturity, paying an interest rate of 4.25 percent. The current is SI.46 per pound, and the one-year forward is $1.25 per pound. Should the U.S. firm invest in U.S. bonds or in U.K. bonds?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...