If two countries had the same term structures of interest rates, then the forward premium or discount would be Select one: O a one b. decreasing c. increasing O d. zero Suppose a U.S. investor purchases German 1-year government bonds with 1,000 U.S. dollars when the exchange rate is 0.92 euro per dollar. The German 1-year government bonds pay 5% interest per year. After one year the exchange rate equals 0.9 euro per dollar. What is the total dollar return on German 1-year government bonds at the end of the year (round up to the nearest integer)? Select one: O a $1,000 O b. $966 O c. $1,050 O d. $1,073 Purchase of U.S. Treasury bonds by a French firm is Select one: a. a debit item in the U.S. current account b. a credit item in the U.S. financial account c. a credit item in the U.S. current account d. a credit item in the U.S. capital account