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Answer Alpha and Beta Companies can borrow for a five-year term at the following rates: Alpha Beta Moody's credit rating Aa Baa Fixed-rate borrowing cost

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Alpha and Beta Companies can borrow for a five-year term at the following rates: Alpha Beta Moody's credit rating Aa Baa Fixed-rate borrowing cost 10.8% 12. 6% Floating-rate borrowing cost LIBOR LIBOR + 1% Calculate the quality spread differential (QSD). (Enter your answers as a percent rounded to 2 decimal places.) Quality spread differential %

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