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Alpha and Beta Companies can borrow for a five-year term at the following rates: Alpha Beta Moodys credit rating Aa Baa Fixed-rate borrowing cost 10.9%
Alpha and Beta Companies can borrow for a five-year term at the following rates:
Alpha Beta
Moodys credit rating Aa Baa
Fixed-rate borrowing cost 10.9% 11.9%
Floating-rate borrowing cost LIBOR LIBOR + 0.8%
Calculate the quality spread differential (QSD) (if your answer is 10.1%, just enter "10.1").
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