74. Revised Question An investment bank's Chief Risk Officer (CRO) has tasked the risk department with evaluating the bank's derivative exposure to a counterparty over a 3-year period. The risk department assumes the counterparty's default probability follows a constant hazard rate process. The table below outlines trade and projected data on the Credit Default Swap (CDS) spread, the expected positive exposure, and the recovery rate of the counterparty:

Year	Expected Positive Exposure (AUD million)	CDS Spread (bps)	Recovery Rate (%)
Year1	14	200	80
Year2	14	300	70
Year3	14	400	60

Additionally, the CRO has provided the risk team with the following assumptions for the analysis:

• The investment bank and the counterparty have established a credit support annex to mitigate exposure, requiring collateral posting of AUD 11 million.
• The prevailing risk-free interest rate is 3%, and the term structure of interest rates remains stable over the 3-year period.
• Both the collateral and the expected positive exposure values remain constant as projected over the 3-year term of the contract.
• Identical discount factors are used for evaluating the expected positive exposure and the collateral.
• The bank’s default probability is 0% per year.

Given the information and assumptions above, what is the precise calculation of the unilateral CVA (Credit Valuation Adjustment) for this position?