Question: Alpha and Beta Companies can borrow for a five-year term at the followng rates: Required: Q. Calculate the quality spread differentral (QSD): b-1. Develop an

 Alpha and Beta Companies can borrow for a five-year term at

Alpha and Beta Companies can borrow for a five-year term at the followng rates: Required: Q. Calculate the quality spread differentral (QSD): b-1. Develop an interest rate swop in which both Alpha and Beta have an equal cost savings in their borrowing costs. Assume Aipha desires floating-rate debt and Beta desires flxed-rate debt No swap bank is involved in this transaction. What rate should 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. Calculate the quality spread differential (QSO). Notel Entar your answers as a percent rounded to 1 decimal place

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