Two years ago Sweshee Corp, entered into a 5-year cross-currency interest rate swap to receive Euros and pay US. dollars. Sweshee has just decided to unwind the swap today, three years before maturity. How much does Sweshee receive in cash from its swap counterparty today? Briefly interpret the result.

USD-denominated notional principal two years ago = $11.200,000

EUR-denominated notional principal two years ago = 10,000.000

$ 5-year swap rates two years ago: bid = 1.50%,; ask = 1.54%

5-year swap rates two years ago: bid = 0.85%; ask = 0.89%

Current spot rate ($/) = $1.1860/

Current $ interest rate for all maturities = 1.36%

Current interest rate for all maturities = 1.20%