Expected Returns from Holding One-Year u. s or German Bonds ear Year t+l U.s. bonds S1 S(1+it) German bonds S1 S(E,)(1+it)E+1 DM(E.)一DM(E.)(1+it)Expected Returns from Holding One-Year U.S. or German Bonds Year t Year t+1 U.S. bonds $1 $(1+it) German bonds $1 $( Et 1 )(1+it * )Et+1 e DM( Et 1 ) DM( Et 1 )(1+ it * )