Letticia Garcia, an aggressive bond investor, is currently thinking about investing in a foreign (non-dollar-denominated) government bond. In particular, she's looking at a Swiss government bond that matures in 15 years and carries a coupon of 9.25%. The bond has a par value of 10,000 Swiss francs (CHF) and is currently trading at 105.44 (i.e., at 105.44% of par). Letticia plans to hold the bond for one year, at which time she thinks it will be trading at 112.74 - she's anticipating a sharp decline in Swiss interest rates, which explains why she expects bond prices to move up. The current exchange rate is 1.59 CHFI.S.S, but she expects that to fall to 1.31 CHFI.S.\$. Use the foreign investment total return formula to find the following information. a. Ignoring the currency effect, find the bond's total return (in its local currency). b. Now find the total return on this bond in U.S, dollars. Did currency exchange rates affect the refurn in any way? Do you think this bond would make a good investment? Explain. a. Ignoring the currency effect, the bond's total return (in its local currency) is \%. (Round to two decimal places.) b. The total return on this bond in U.S. dollars is \%. (Round to two decimal places.) Did currency exchange rates alfect the return in any way? Do you think this bend would make a good investment? Explain. (Select the best choice below.) A. The better retum is in U.S. dollars. Exchange rates yielded a higher total return because the dollar depreciated relative to the Swiss franc. The bond would make a good invesiment if the investor's required rate of return is at least equal to the bond"s total return. B. The better retum is in U.S. dollars. Exchange rates yelded a lower total retum because the dollar depreciated relative to the Swiss franc. The bond would make a good investment if the investors required rate of return is at least equal to the bond's total return. c. The better retum is in the local currency. Exchange rates ylelded a lower total retum because the dottar deprociated relafive to the Swiss franc. The bond would make a good investment if the investors required rate of return is at least equal to the bond's total retum