A. Suppose Canadian Govt is considering a loan to Bangladesh Govt apart from its aid so far (up to mid September of last year Canada gave Bangladesh $4.5M and committed to $9.63 million in humanitarian assistance funding to aid partners in Burma and Bangladesh to help conflict-affected people, including the Rohingya). This loan would be of $85 million that will be interest-only for the first 6 years. Then amortization period would start and the loan has to be repaid in 8 years. The interest rate will be 6% and all the payments are semi-annual.

Calculate the following for this loan:

i) Payment during the grace period (interest-only period). ii) Payment during amortization period. iii) Present value of all the payments made (use annual discount rate of 10%). iv) Grant element. v) Conclude whether the loan would be qualified as ODA.