As a CFO of Flinstone Logistic Berhad, you anticipate to borrow RM1 billion at 1.75 percent above KIBOR in July 2017. Currently, the quoted prices for July 2017 KLIBOR futures and physical interest are 96.65 and 3.15 percent, respectively. The interest rate is expected to rise steadily from today, early April 2017 until end of the year. In managing rising domestic interest rates, establish your hedging strategy by showing its effective interest rate if at maturity of July 2017 KLIBOR futures, both rates are settled at 3.6 percent per annum.