Problem $12\mathrm{.}2$

Required:

Consider $9\mathrm{.}6$ percent Swiss franc per U$.$S$.$ dollar dual$-$currency bonds that pay $$666\mathrm{.}67$ at maturity per SFr$1,000$ of par

value. It sells at par. What is the implicit SFr per $ exchange rate at maturity? Will the investor be better or worse off at

maturity if the actual SFr per $ exchange rate is SFr$1\mathrm{.}46$ per $$1\mathrm{.}00?$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Implicit exchange rate

Investor's Position