Under the terms of a currency swap, a company has agreed to receive a fixed interest rate of 10% per annum on an America

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Under the terms of a currency swap, a company has agreed to receive a fixed interest rate of 10% per annum on an American dollar loan with a notional principal of $5million. In exchange, the company will pay a fixed interest rate of 8% per annum on a Dutch Euro Loan with a notional principal of €2.5million. Net interest payments are exchanged every six months. The swap has a remaining life of thirteen months. The current interest rates are 7% per annum in America and 6% per annum in Holland. Assume both rates are with continuous compounding for all maturities ( Assuming a flat terms structure). The current exchange rate is €1=$2. Calculate the current value of the currency swap for the company in American dollars.