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Interserve and Kier Group can borrow for one year at the following rates: Interserve 4.50% Kier Group 5.10% LIBOR + 0.15% LIBOR +0.35% Fixed rate Floating rate Calculate the quality spread differential for each rate and determine each company's comparative advantage. What does it imply for the borrowing costs of the two companies? [20 marks] Develop an interest rate
Related Book For
Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
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