5. [Zero-coupon bond; foreign currency debt] Roche has out- standing zero-coupon U.S. dollar notes. with a $2 15 billion face value duc 2010. that were issued with a 70 yield to maturity They are carried at the following amounts 12-31-98 12-31-99 Carrying amount (CHF millions) 1.282 1.618 Exchange rate (CHF'dollar) 1.37 1.60

a. Compute the carrying amount of the honds in SU.S. at De- cember 31, 1998