A currency derivatives trader at a hedge fund is describing the mechanics of currency swaps to a group of junior analysts. The trader uses an example of a fixed-for-fixed USD for CNY currency swap with the following terms:

• Notional amount in USD: USD 10 million
• Notional amount in CNY: CNY 65 million
• Interest rate in USD: 1.0%
• Interest rate in CNY: 2.5%
• Time to maturity: 4 years
• Frequency of interest payments: Annual

Assuming the hedge fund receives interest in CNY, which of the following conclusions would the analysts find to be most likely correct?