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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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