Three years ago Asamoah Construction Co built a factory in Ghana costing $32 million. To finance the construction of the factory, Asamoah Construction Co issued Nairadenominated bonds in Nigeria whose currency is the Naira. Interest rates at the time in Nigeria were historically low. The foreign bond issue raised 16 million Naira and the exchange rate at the time was 500 Naira/$. Each foreign bond has a par value of 500 Naira and pays interest in Naira at the end of each year of 61%. The bonds will be redeemed in five years time at par. The current cost of debt of Naira-denominated bonds of similar risk is 7%. In addition to domestic sales, Asamoah Construction Co exports goods to Nigeria and receives payment for export sales in Naira. Approximately 40% of production is exported to Nigeria. The spot exchange rate is 600 Naira/$ and the 12-month forward exchange rate is 607 Naira/$. Asamoah Construction Co can borrow money on a short-term basis at 4% per year in its home currency and it can deposit money at 5% per year in Nigeria where the foreign bonds were issued. Taxation may be ignored in all calculation parts of this question. Assume that Asamoah Construction Co has no surplus cash at the present time: Explain and illustrate how a money market hedge could protect Asamoah Construction Co against exchange rate risk in relation to the dollar cost of the interest payment to be made in one years time on its foreign bonds.