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Use the following information to calculate the quality spread differential (QSD). Fixed-Rate Borrowing Cost 10 % Company X Company Y 12 % O 0.40 percent

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Use the following information to calculate the quality spread differential (QSD). Fixed-Rate Borrowing Cost 10 % Company X Company Y 12 % O 0.40 percent O 1.00 percent O 2.00 percent O 1.60 percent Floating-Rate Borrowing Cost LIBOR LIBOR + 1.6 %

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