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