A bank has a USD50,000,000 portfolio available for investing. The cost of funds for the USD50,00 0,000 is 4.5%. The bank lends 50% of the assets to domestic customers at an average loan rate of 6.25%. The rest of the portfolio is lent to UK clients at 7%. The current exchange rate is USD1.64 2/GBP. At the same time, the bank sells a forward contract equal to the expected receipts one year from now. The forward rate is USD1.58/GBP. The weighted average return to the bank on its assets is closest to: