DVR, Inc. can borrow dollars for five years at a coupon rate of 2.75 percent. Alternatively, it can borrow yen for five years at a rate of .85 percent. DVR prefers dollar borrowing. The five-year yen swap rates are .64--.70 percent and the dollar swap rates are 2.41--2.44 percent. The current /$ exchange rate is 87.575. Illustrate how currency swap helps DVR lower its dollar borrowing cost.