Suppose you purchase a $7-$year AAA$-$rated Swiss bond for par that is paying an annual coupon of $7$ percent and has a face value of $2,300$ Swiss francs $($SF$).$ The spot rate is U$.$S$.$ $$0\mathrm{.}66667$ for SF$1.$ At the end of the year, the bond is downgraded to AA and the yield increases to $9$ percent. In addition, the SF depreciates to U$.$S$.$ $$0\mathrm{.}74074$ for SF$1.$

a$.$ What is the loss or gain to a Swiss investor who holds this bond for a year?

b$.$ What is the loss or gain to a U$.$S$.$ investor who holds this bond for a year?