A) Use both RoR formulae (one from section
10-4 the other from section
10-5: Step 5) to calculate the expected rate of return on the
British money market deposit and show that both formulae generate
the same answer. (Express each answer as a percentage.)

B) What part of the rate of return arises only due to the interest
earned on the deposit? (Express the answer as a percentage.)

C) What part of the rate of return arises from the percentage change
in the value of the principal due to the change in the exchange rate?
(Express the answer as a percentage.)

D) What component of the rate of return arises from the percentage
change in the value of the interest payments due to the change in
the exchange rate? (Again, express the answer as a percentage.)