2 . Company X wants to borrow $10. 090, 000 for 3 years ; company Y wants to borrow $5, 0do, a90 for 3` years . The exchange rate is $2 = Il and is not expected to change over the next 3 years . Their external borrowing opportunities are shown below :` Company !\\ Borrowing Cost $10 % Borrowing Cost Company !` $12% $ 1 3%/ ( 1 ) How much is the quality spread differential ( QSD ) between Company X and Y above ? ( 1 point ) ( 2 ) A swap bank proposes the following currency swap :" * will pay the swap bank annual payments on $10 ,0.00 ,000 with the coupon rate of 9.80% per year , in exchange the swap bank will pay to company X interest payments on $5 , 000 , 000 at a fixed interest rate of 10. 5% per year . Y will pay the swap bank interest payments on $5 , 000, 900 at a fixed interest rate of 12. 80% per year and the swap bank will pay Y annual payments on $10.0.00, 000 with the fixed interest rate* of 12% per year . [^#10. 50 0 _s9.8%e` `\\SWAP\\ $120 0, `BANK` `