6. Suppose the term structure of interest rates is flat in the United States and Canada. The USD interest rate is 2% per annum and the CAD interest rate is 3% per annum. Both rates are expressed with continuous compounding. The current value of one CAD is 0.73 USD. Some time ago, a financial institution entered into a currency swap to pay 5% per annum in CAD and to receive 4.5% per annum in USD with payment exchange every 6 months. The principals in the two currencies are $10 million USD and $14 million CAD, respectively. The swap will last two more years. What is the value of the swap to the financial institution? (10 marks)