A Domestic Bond Investment Is Preferred to a Foreign Bond

A domestic bond investment is preferred to a foreign bond investment if:

A) the expected percentage change in the exchange rate is greater than the rate of return on the foreign bond.
B) the expected annual percentage change in the exchange rate is less than the rate of return differential.
C) the expected annual percentage change in the exchange rate is greater than the rate of return differential.
D) the yield to maturity on the foreign bond is greater than the yield to maturity on the domestic bond.