An UAE investor purchased a 10 year AAA rated Singapore bond (FV S $ 1000) fpr S $ 1050. The bond is paying annual coupon of 7 percent. The spot rate at the time of purchase is AED 2.55/S$ 1. At the end of one year, the bond is downgraded to AA- and the yield increased. Accordingly the price of the bond decreased to S $ 954.24. At the same time, S$ strengthened and exchange rate was AED 2.75/S$. What is the loss or gain to the UAE investor? What portion of this loss or gain due to foreign exchange risk? What portion is due to interest rate risk?