Scenario: American investment fund, Muskman plans to lend \$1m at an annual interest rate of 9.5\% for five years to a UK gene tech start-up company called Enegone Limited. Muskman has fixed its initial exchange rate to 1.1 dollars to the pound and the initial principal will be converted into pounds at that rate. There are no stage payments involved in the deal. Give your answers below to the nearest penny. (a) What will be the pound-value of the loan at the start of the loan period? (1 mark) (b) What will be the pound-value of the loan at the end of the loan period? (3 marks) (c) If Muskman had fixed its forward exchange rate at the end of the loan period again to 1.1 dollars to the pound what would be the nominal dollar value of the loan be to Muskman? (2 marks) (d) If Muskman had not fixed its forward exchange rate, in what exchange rate circumstance would their actual loan value go up? (1 mark) (e) Again, if Muskman had not fixed its forward exchange rate, in what exchange rate circumstance would their actual loan value go down? (1 mark) (f) Identify two other situations in which Muskman's loan return might be worth less than originally anticipated