The Board of Directors of Aduako Ltd has approved an expansion project which will require cash inflow of GHS10 million. The investment duration will be 6 months and management is considering taking a fixed interest rate loan from its bankers. The loan will be required in three months from the date of boards approval. Management of Aduako is considering hedging its risk exposure using a Forward Rate Agreement (FRA). The 3-9 months FRA rate at the transaction date was 5%. Required: If the spot rate at the settlement date is 8%, calculate the present value of the following: Settlement value Loan amount required Interest on loan Effective interest rate