7. An interest-only currency swap has a remaining life of 30 months. It involves exchanging interest at 12 % on 120 million for interest at 8% on $14 million twice a year The term structure of interest rates is currently flat inboth the US and in the UK. If the swap were negotiated today the interest rates exchanged would be S7% and E.m All rates were quoted with annual compounding. The current exchange rate is $1.25-E1. What is the value of the swap to the party paying pounds? (15)