A financial institution has entered into a 10-year currency swap with company Y. Under the terms of the swap, the financial institution receives interest at $3 \%$ per annum in Swiss francs and pays interest at $8 \%$ per annum in U.S. dollars. Interest payments are exchanged once a year. The principal amounts are 7 million dollars and 10 million francs. Suppose that company Y declares bankruptcy at the end of year 6 , when the exchange rate is $$\$ 0.80$$ per franc. What is the cost to the financial institution? Assume that, at the end of year 6 , riskfree interest rates are 3\% per annum in Swiss francs and $8 \%$ per annum in U.S. dollars for all maturities. All interest rates are quoted with annual compounding.