Suppose you purchase an 8-year AAA-rated Swiss bond for par that is paying an annual coupon of 6 percent and has a face value of 1,800 Swiss francs (SF). The spot rate is U.S. $1.07 for SF1. At the end of the year the bond is downgraded to AA, the yield increases to 8 percent, and the price falls to SF1,612.57. In addition, the SF depreciates to U.S. $1.25 for SF1. What is the loss or gain to a Swiss investor who holds this bond for a year?; What is the loss or gain to a U.S. investor who holds this bond for a year? (Dont forget to include the coupon in your return).