Question: Alpha and Beta Companies can borrow for a five-year term at the following rates: Moody's credit rating Fixed-rate borrowing cost Floating-rate borrowing cost Alpha Aa

Alpha and Beta Companies can borrow for a five-year term at the following rates: Moody's credit rating Fixed-rate borrowing cost Floating-rate borrowing cost Alpha Aa 12.18 LIBOR Beta Baa 15.28 LIBOR + 10 Calculate the quality spread differential (QSD). (Enter your answers as a percent rounded to 2 decimal places.) Quality spread differential %

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