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German company and the swap dealer pays and receives under theswap contract that satisfies the following:? The same swap dealer is involved in this currency swap withthe US company and the German company.? The US company’s net borrowing cost is 5.2% p.a. on $ and theGerman company’s net borrowing cost is 6.1% p.a. on €.? The swap dealer pays and receives $ at 5.2% p.a.(b) Suppose the US company has entered into a 5-year currencyswap with the swap dealer regarding the swap mentioned above. Theprincipal amounts are $15 million and €10 million. Suppose that theUS company declares bankruptcy at the end of year 3 just before theexchange of payment, when the exchange rate is $1.6/€. What is thecost to the swap dealer in US dollars? Assume that, at the end ofyear 3, the risk free interest rate is 4% per annum in US dollarsand 3% per annum in euros for all maturities. All interest ratesare quoted with annual compounding. Assume that the theoreticalforward exchange rates can be realized. Also assume there are 360days in a year.Hint: In the event of default at the end of year 3, the swapdealer will not receive cashflows from the US company nor paycashflows to the US company. The cost of default to the dealer isthe value of the swap to the swap dealer if the US company had notdefaulted at Year 3.Plz answer 2 sunb-question as a whole. thanks so much. willthumbsup if you did.