Suppose that in Problem 27.20, the six-month forward rate is also 1.50 and the six-month dollar risk-free interest rate is 5% per annum. Suppose further that the six-month dollar rate of interest at which the counterparty can borrow is 5.5% per annum. Estimate the present value of the cost of defaults assuming that defaults can occur either at the six-month point or at the one-year point? (If a default occurs at the six-month point, the company's potential loss is the market value of the contract.)