no blurr at all

5 points Lithium Mining Co is a China based company that mines lithium. The firm took out a one-year, 545 million (USD) loan exactly one year ago with an 8.30% annual interest rate. The firm's functional currency is yuan (CNY), but payment must be made in dollars (USD). When the debt was originally borrowed, the spot rate was 6.9BCNY/USD. Now the spot rate is 7.07CNY/USD What impact did the exchange rate change have on the cost of the loan in terms of CNY? Did it result in a gain or loss? Please show all work. Hint calculate the difference of the expected cost when the loan originated and the cost when paid. EXTRA CREDIT (2 points) What technique can the firm use to mange the exchange rate risk? Explain how the technique works TTT Ariel : 3 (120) T.EE