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Alpha and Beta Companies can borrow for a five-year term at the following rates: Assuming more realistically that a swap bank is involved as an
Alpha and Beta Companies can borrow for a five-year term at the following rates: Assuming more realistically that a swap bank is involved as an intermediary. Assume the swap bank is quoting five-year dollar interest rate swaps at 12.1-11.5 percent against LIBOR flat. Calculate the quality spread differential (QSD). (Enter your answers as a percent rounded to 1 decimal places.) QSD is Savings of Alpha company is % Savings of Beta company is Savings of Swap Bank is % Alpha and Beta Companies can borrow for a five-year term at the following rates: Assuming more realistically that a swap bank is involved as an intermediary. Assume the swap bank is quoting five-year dollar interest rate swaps at 12.1-11.5 percent against LIBOR flat. Calculate the quality spread differential (QSD). (Enter your answers as a percent rounded to 1 decimal places.) QSD is Savings of Alpha company is % Savings of Beta company is Savings of Swap Bank is %
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