Which of the Following Statements Best Defines the Exchange Rate

Which of the following statements best defines the exchange rate risk premium?

A) A premium that occurs when the bond is denominated in the investor's home currency and reflects the risk that arises from investing or doing business in a particular country.
B) A premium that reflects interest rate risk.
C) A premium added to the equilibrium interest rate on a security if that security cannot be converted to cash on short notice and at close to "fair market value."
D) A premium that results when a bond is denominated in the investor's home currency and results from the possibility that an exchange rate change will lead to a loss in a bond's value.
E) A premium that results when a bond is denominated in a currency other than the investor's home currency and results from the possibility that an exchange rate change will lead to a loss in a bond's value.