Company A is a AAA-rated firm desiring to issue five-year FRNs. It finds that it can issue FRNS at six-month CME Term SOFR + 0.625 percent or at three-month CME Term SOFR + 0.625 percent. Given its asset structure, three-month SOFR is the preferred index. Company B is an A-rated firm that also desires to issue five-year FRNs. It finds it can issue at six-month CME Term SOFR + 1.475 percent or at three-month CME Term SOFR + 1.125 percent. Given its asset structure, six-month SOFR is the preferred index. Assume a notional principal of $15,000,000. Required: a. Determine the QSD. b. Set up a floating-for-floating rate swap where the swap bank receives 0.125 percent and the two counterparties share the remaining savings equally. Calculate the all-in-cost of borrowing for company A and B. Complete this question by entering your answers in the tabs below. Required A Required B Determine the QSD. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places. Quality spread differential %

Company A is a AAA-rated firm desiring to issue five-year FRNs. It finds that it can issue FRNs at six-month CME Term SOFR +0.625 percent of ot three-month CME Term SOFR + 0.625 percent. Given its asset structure, three-month SOFR is the preferred index. Company B is an A-rated firm that also desires to issue five-year FRNs. It finds it can issue at six-month CME Term SOFR +1.475 percent or at three-month CME Term SOFR +1125 percent. Given its asset structure, six-month SOFR is the preferred index Assume a notional principal of $15,000,000. Required: a. Determine the QSD. b. Set up a floating-for-floating rate swap where the swap bank recelves 0125 percent and the fwo counterparties share the remaining savings equally. Calculate the all-in-cost of borrowing for company A and B. Complete this question by entering your answers in the tabs below. Determine the QSD. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places