Swap agreement. Grant plc is a well-known UK firm that needs to borrow 10 million dollars to support a new business in the United States. However, it cannot obtain financing from US banks because it is not yet established within the United States. It decides to issue pound-denominated debt (at par value) in the United Kingdom, for which it will pay an annual coupon rate of 10%. It then will convert the pound proceeds from the debt issue into dollars at the prevailing spot rate (the prevailing spot rate is one pound ¼ $1.70). Over each of the next three years, it plans to use the revenue in dollars from the new business in the United States to make its annual debt payment. Grant plc engages in a currency swap in which it will convert dollars to pounds at an exchange rate of $1.70 per pound at the end of each of the next three years. How many pounds must be borrowed initially to support the new business in the United States? How many dollars should Grant plc specify in the swap agreement that it will swap over each of the next three years in exchange for pounds so that it can make its annual coupon payments to the UK creditors?