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Assume that an American investor decides to buy one-year Swiss bonds that are denominated in Swiss...

Assume that an American investor decides to buy one-year Swiss bonds that are denominated in Swiss Francs and pay 2% annual interest. For this purpose, $10,000 is exchanged into Swiss francs at an exchange rate of $1=2Fr to buy bonds. How many dollars will the investor have after one year if the exchange rate is $1=1.5Fr?

a) $10,000

b) $10,200

c) $15,300

d) $13,600

e) $7,650

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