Firms A and B want to borrow $10M for 5 years. They are offered the following terms by outside creditors

	Fixed-Rate Market	Floating-Rate Market
A	10%	6-mo LIBOR +0.3%
B	11.2%	6-mo LIBOR + 1.0%
Difference (spread)	1.2%	0.7%

Which of the following statements is correct?

		Firm A has a poorer credit rating than firm B
		The spread differential is 0.5%
		If firm A wants to pay a floating rate, it should borrow at 10% and buy a swap from B
		The information in the table is sufficient to determine the swap price