Consider 6.5 percent Swiss franc/U.S. dollar dual-currency bonds that pay $666.67 at maturity per SF1,000 of par value. It sells at par. Will the investor be better or worse off at maturity if the actual SF/$ exchange rate is SF1.35/$1.00?

Group of answer choices

The dual currency bond investor is better off with $666.67 because the implicit exchange rate is SF1.50/$1.00.

The dual currency bond investor is better off with $666.67 because the implicit exchange rate is SF1.65/$1.00.

The dual currency bond investor is worse off with $666.67 because the implicit exchange rate is SF1.65/$1.00.

The dual currency bond investor is worse off with $666.67 because the implicit exchange rate is SF1.50/$1.00.