Q$2.$ Current USD Interest rates are $7\%$ per annum and AUD rates are $9\%$ per annum, flat for all terms.

Current value of AUD is $0\mathrm{.}62$ USD. Under a FX swap agreement, a financial institution pays $8\%$ per annum

in AUD and receives $4\%$ per annum in USD. Notional principals are $12$ Million USD and $20$ Million AUD.

Payments are exchanged every year, with one exchange having just taken place. The swap will last $5$ more

years. What is the value of the swap to the financial institution? pls showcase the calculations made