Q3 An Australian importing company needs to pay 3.5m USD in two years' time for ordered purchases. The current spot rate is AUD / USD 0.6413 / 0.6479. Australian interest rates are currently at 4.35% p.a. and U.S. interest rates are at 5.5% p.a. The net interest rate spread in both countries is 1.75% (read this as the borrowing rates are 1.75% higher than the given investment rates above). Design a money market hedge which will remove the FX risk faced by the company, yet not altering the timing of the payment. Clearly show the AUD cash flow in the future.