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Company A has a fixed borrowing cost of 3% and float rate cost of LIBOR. Company B has a fixed-rate borrowing cost of 4% and
Company A has a fixed borrowing cost of 3% and float rate cost of LIBOR. Company B has a fixed-rate borrowing cost of 4% and a float rate cost of LIBOR +0.6%. Which of the following is true?
1. The QSD is 3%
2. The QSD is 1%
3. The QSD is 0.6%.
4. The QSD is 0.4%
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