Question $38$

Company $H$ is a high credit$-$worthy borrower. Company $L$ is a low credit$-$worthy borrower. Their preference, status, and borrowing opportunities are shown below:

$\backslash$table$[[$Company$,\backslash$table$[[$Preferred$],[$Rate$]],\backslash$table$[[$Currently$],[$Borrowing at$]],\backslash$table$[[$Fixed Rate$],[$Borrowing Cost$]],\backslash$table$[[$Floating Rate$],[$Borrowing Cost$]]],[$H$,$Floating,Fixed,$4\mathrm{.}25\%,$PRIME$],[$L$,$Fixed,Floating,$6\mathrm{.}25\%,$PRIME $+0\mathrm{.}50\%$