Suppose that you buy, and one year later sell, a foreign (British) bondLOADING. Under the following circumstances: When you buy the bond the exchange rate is $1. 50 = pound1. You pay pound45 ($67. 50) for the British bond. You sell the bond for pound50. No interest payment was expected or received. When you sell the bond, the exchange rate is $1. 80 = pound1