(A) Based on the given information, which company has the absolute advantage in borrowing both currencies? (Please type Boeing or Airbus)

(B) Which company has the comparative advantage in borrowing EUR? (Please type Boeing or Airbus

(C) What is QSD (quality spread differential)? % (Please keep two decimal places and do not type the percentage sign. For example, please type in 9.10 in the box if your answer is 9.1%.)

Boeing, a U.S. aircraft company, needs to borrow EUR50 million for 10 years to invest in a logistic distribution network in Europe. Airbus, a European aircraft company, needs to borrow USD 10 million for 10 years to initiate an expansion project in the U.S. The current spot exchange rate is EUR 5/USD. The following table shows the borrowing costs these two companies face: Boeing, a U.S. aircraft company, needs to borrow EUR50 million for 10 years to invest in a logistic distribution network in Europe. Airbus, a European aircraft company, needs to borrow USD 10 million for 10 years to initiate an expansion project in the U.S. The current spot exchange rate is EUR 5/USD. The following table shows the borrowing costs these two companies face