1) Suppose that the term structure of interest rates is flat in England and Germany. The GBPinterest rate is 5% per annum and the EUR rate is 3% per animi continuously compounded) fara agreemen, a financial institution pays 8% per annum in GBP and receives per eum in EUR annually compounded). The exchange rate between the two currencies has changed from IS FUR per GBP 1.10 EURO GBP since the wap's initiation. The swap had a value when it wa mitiated. The principal in Betish pounds is 25 million GBP. Payments are exchanged every year, with one exchange having just taken place. The wap will last three more years. What the value of the swap to the financial institution in terms of euros