The Chief Risk Officer (CRO) at an investment bank has tasked the risk department with assessing the bank’s derivative exposure to a counterparty over a three-year period. The risk department assumes a constant hazard rate process for the counterparty’s default probability. The table below provides trade and forecast data on the CDS spread, expected exposure, and recovery rate for the counterparty:

	Year 1	Year 2	Year 3
Expected positive exposure (AUD million)	14	14	14
CDS spread (bps)	200	300	400
Recovery rate (%)	80	70	60

The CRO has also provided the following assumptions for the analysis:

• A credit support annex is in place, requiring the counterparty to post AUD 11 million in collateral to mitigate the exposure.
• The risk-free interest rate is 3%, with a flat term structure over the three-year period.
• Both the collateral and expected positive exposure remain constant as projected over the three-year contract duration.
• The same discount factors are applied to both the expected positive exposure and the collateral.
• The bank’s annual default probability is 0%.

Using the provided data and assumptions, calculate the unilateral Credit Valuation Adjustment (CVA) for this derivative position.