A currency swap has a remaining life of 11 months. It involves exchanging interest at 4% on 50 million for interest at 8% on $75 million on a quarterly basis. The term structure of risk-free interest rates in the United Kingdom is flat at 6% and the term structure of risk-free rates in the United States is flat at 4.8% (both with quarterly compounding). The current exchange rate (dollars per pound sterling) is 1.525. What is the value of the swap to the party paying sterling? What is the value of the swap to the party paying dollars? Explain