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Consider a 1-year EUR/USD dual-currency bond with EUR 1,000 par value and a 5% coupon. The bond sells at par. The repayment at maturity is

Consider a 1-year EUR/USD dual-currency bond with EUR 1,000 par value and a 5% coupon. The bond sells at par. The repayment at maturity is $1100. What is the implicit $/ exchange rate at maturity? Will the investor be better or worse off at maturity if the actual $/ exchange rate is $1.06/?

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