Question: Alpha and Beta Companies can borrow for a five-year term at the following rates: 9 Moody's credit rating Fixed-rate borrowing cost Floating-rate borrowing cost Alpha

Alpha and Beta Companies can borrow for a five-year term at the following rates: 9 Moody's credit rating Fixed-rate borrowing cost Floating-rate borrowing cost Alpha 10.5% LIBOR Beta Baa 12.ex LIBOR + 1% eBook Calculate the quality spread differential (QSD). (Enter your answers as a percent rounded to 2 decimal places.) Quality spread differential $ 0.5%

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