Suppose you have a 2.5-year remaining on an interest rate swap with a notional principal of $10, 000, 000 between Company A and Company B. Company A pays fixed rate and Company B pays the float rate. Fixed and float payments are exchanged every year and the last payment was exchanged 6 months ago. The fixed rate is 3.5% per annum, and the floating rate is tied to the annual LIBOR. The previous 1-year LIBOR rate, set 6 months ago, is 2.75%, 6 month LIBOR is 3.25%. the 1.5-year LIBOR is 3.25%, and the 2.5-year LIBOR is 3.50%.

Calculate the present value of the fixed and floating legs of the swap, and determine the swaps net present value from Company As perspective. Assume annual compounding for discounting.