Consider a German firm that wishes to invest euro funds for a period of one year. The firm has a choice of investing in a euro bond with one year to maturity, paying an interest rate of 3.35%, and a U.S. dollar bond with one year to maturity, paying an interest rate of 2.25%. The current exchange rate is 1.12 euro per U.S. dollar, and the one-year forward exchange rate is 1.25 euro per U.S. dollar. Should the German firm invest in euro bonds or in U.S. bonds?