10 Alpha and Beta Companies can borrow for a five-year term at the following rates: 10...

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10 Alpha and Beta Companies can borrow for a five-year term at the following rates: 10 points Moody's credit rating Fixed-rate borrowing cost Floating-rate borrowing cost Required: Alpha Beta Aa 11.7% SOFR+0.72% Baa 14.4% SOFR+1.72% a. Calculate the quality spread differential (QSD). b-1. Develop an interest rate swap in which both Alpha and Beta have an equal cost savings in their borrowing costs. Assu Alpha desires floating-rate debt and Beta desires fixed-rate debt. No swap bank is involved in this transaction. What rate s Alpha pay to Beta? b-2. What rate will Beta pay to Alpha? b-3. Calculate the all-in-cost of borrowing for Alpha and Beta, respectively. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Calculate the quality spread differential (QSD). Note: Enter your answers as a percent rounded to 1 decimal place. Quality spread differential % Required A Required B1 > 10 Alpha and Beta Companies can borrow for a five-year term at the following rates: 10 points Moody's credit rating Fixed-rate borrowing cost Floating-rate borrowing cost Required: Alpha Beta Aa 11.7% SOFR+0.72% Baa 14.4% SOFR+1.72% a. Calculate the quality spread differential (QSD). b-1. Develop an interest rate swap in which both Alpha and Beta have an equal cost savings in their borrowing costs. Assu Alpha desires floating-rate debt and Beta desires fixed-rate debt. No swap bank is involved in this transaction. What rate s Alpha pay to Beta? b-2. What rate will Beta pay to Alpha? b-3. Calculate the all-in-cost of borrowing for Alpha and Beta, respectively. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Required B3 Calculate the quality spread differential (QSD). Note: Enter your answers as a percent rounded to 1 decimal place. Quality spread differential % Required A Required B1 >