The implicit SF/$ exchange rate at maturity of a Swiss franc/U.S.dollar dual currency bonds that pay $581.40 at maturity per SF1,000,is
A)SF0.58/$1.00
B)SF1.58/$1.00
C)SF1.72/$1.00
D)SF1.95/$1.00

Question

Quizplus · Accepted Answer

The implicit exchange rate is calculated by dividing the amount received in dollars by the amount in Swiss francs: $581.40/SF1,000 = SF0.5814 per $1.00, which is approximately SF1.72/$1.00 when inverted.

The Implicit SF/$ Exchange Rate at Maturity of a Swiss