Annika bought euro denominated bonds when the exchange rate was .909 euro to the dollar. She paid $11,881 for the bonds. At the end of the year, the bonds were worth 10,600 euro; she received 400 euro in interest and the exchange rate was .921 euro to the dollar. What was her holding period return in U.S. dollars?
1) 5.30%
2) 1.85%
3) 0.53%
4) -0.74%