The borrowing opportunities of two firms are shown below: Firm 1 Firm 2 3.75% 4.75% Fixed rate Floating rate LIBOR +0.25% LIBOR + 0.75% Design an interest rate swap in which both firms share the savings from engaging in the swap equally. Assume that there is no swap bank involved in the transaction, that firm 1 wishes to borrow at the floating rate and firm 2 wishes to borrow at the fixed rate. Explain the role the Quality Spread Differential (QSD) plays in the swap