Company C presently has access to floating interest rate funds at a margin of 1.0% over LIBOR. Its direct borrowing cost is 11% in the fixed-rate bond market. In contrast, company D has access to fixed-rate funds at 12.2% and floating-rate funds at LIBOR+1.7%. Which company is deemed more risky by the investors in the bond markets?

Select one:

a. Company C

b. Company D

c. Can't tell from the information given.