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Use the following information to calculate the quality spread differential (QSD). (Show/ explain simplest way to work this problem) Fixed-Rate Borrowing Cost Floating-Rate Borrowing Cost
Use the following information to calculate the quality spread differential (QSD). (Show/ explain simplest way to work this problem)
| Fixed-Rate Borrowing Cost |
| Floating-Rate Borrowing Cost | ||||
Company X |
| 10 | % |
|
| LIBOR |
|
Company Y |
| 12 | % |
|
| LIBOR + 1.5 | % |
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