Suppose you purchase a 9-year aaa-rated swiss bond for par that is paying an annual coupon of 8 percent and has a face value of 1,200 swiss francs (sf). the spot rate is u. s. $0.7 for sf1. at the end of the year, the bond is downgraded to aa and the yield increases to 10 percent. in addition, the sf depreciates to u. s. $0.74074 for sf1.a. what is the loss or gain to a swiss investor who holds this bond for a year? (input the amount as a positive value. do not round intermediate calculations. round your answer to 2 decimal places. (e. g., 32.16)) (click to select)lossgain to swiss investor % b. what is the loss or gain to a u. s. investor who holds this bond for a year? (input the amount as a positive value. do not round intermediate calculations. round your answer to 2 decimal places. (e. g., 32.16))

Suppose that a major city’s main thoroughfare, which is also an interstate highway, will be completely closed to traffic for two years, from january 2014 to december 2015, for reconstruction at a cost of $535 million. if the construction company were to keep the highway open for traffic during construction, the highway reconstruction project would take much longer and be more expensive. suppose that construction would take four years if the highway were kept open, at a total cost of $800 million. the state department of transportation had to make its decision in 2014, one year before the start of construction (so that the first payment was one year away). so the department of transportation had the following choices: (i) close the highway during construction, at an annual cost of $267.5 million per year for two years. (ii) keep the highway open during construction, at an annual cost of $200 million per year for four years. now suppose the interest rate is 80%. calculate the present value of the costs incurred under each plan.