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2) Consider 8.5 percent Swiss franc/U.S. dollar dual-currency bonds that pay $666.67 at maturity per SF1,000 of par value. a) What is the SF/$ exchange

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2) Consider 8.5 percent Swiss franc/U.S. dollar dual-currency bonds that pay $666.67 at maturity per SF1,000 of par value. a) What is the SF/$ exchange rate at maturity if this dual-currency bond is equal to a single Swiss Franc bond with the same face value, maturity and coupon payment? Hint: These two bonds are equal means you can exchange $666.67 for SF1,000. b) Will the Swiss investor (bond holder) be better or worse off at maturity if the actual SF/$ exchange rate is SF1.35/$1.00

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