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

Alpha and Beta Companies can borrow for a five-year term at the following rates: Beta Alpha Aa Baa Moody's credit rating Fixed-rate borrowing cost Floating-rate borrowing cost 12.68 LIBOR LIBOR + 18 Calculate the quality spread differential (QSD). (Enter your answers as a percent rounded to 2 decimal places.) Quality spread differential % 10.8%

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