You are a Canadian Importer of goods from UK and have agreed to purchase electronic equipment for a cost of GBP (Pounds) 4,500,000.00 (Four million five hundred). Contract calls for payment in UK pounds at 270 days after immediate shipment having taken place. Using the following information assuming shipment is made, calculate the forward exchange rate (using the correct method given in class see below) that your assigned bank in Canada will agree on to provide a forward exchange rate hedge covering the contract cost to avoid fluctuations in the currency market prior to settlement. Amount GBP 4,500,000 Term 190 days based on a 365day year Spot rate Bid =1.6950 Offer 1.7027 Interest Rate UK 6.00% per annum Interest rate Cda 4.5% per annum 1) Calculate the forward exchange rate you would agree based on the information provided. 2) Calculate the CDN $cost Other Explain each step in the process to demonstrate your clear understanding of the calculation and be accurate using as many decimal places you can without rounding up.