Sonic Master Sendirian Berhad uses Singapore Dollars (SGD) as the main currency as a transaction whereas Keep Calm Sendirian Berhad is using Australian Dollars (AUD). In 4 years, payment of SGD...

Sonic Master Sendirian Berhad uses Singapore Dollars (SGD) as the main currency as a transaction whereas Keep Calm Sendirian Berhad is using Australian Dollars (AUD). In 4 years, payment of SGD 3,400,101 by Sonic Master Sendirian Berhad has to be made to Keep Calm Sendirian Berhad. Exchange rate fluctuations between the SGD and AUD causes the company to fix it's payable and receivable in AUD. The annual interest rates are 6% and 8% for AUD  and SGD respectively. The spot exchange rate is 1.86 units of SGD per 1 unit of AUD. Determine the 360-day forward rate by using a money market hedge: