Consider 85 percent swiss francus dollar dual-currency


Consider 8.5 percent Swiss franc/U.S. dollar dual-currency bonds that pay $666.67 at maturity per SF 1,000 of par value. It sells at par. What is the implicit SF/$ 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?

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Financial Management: Consider 85 percent swiss francus dollar dual-currency
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