Consider 8.5 percent Swiss franc/U.S. dollar dual-currency bonds that pay $666.67 at maturity per SF1,000 of par value.  It sells at par.  What is the implicit SF/$ exchange rate at maturity?  Will the investor be better or worse off at maturity if the actual SF/$ exchange rate is SF1.35/$1.00?

Answer rating: 100% (QA)

Answer Implicitly the dualcurrency bonds call for the exchange of SF1000 of face value f... View the full answer