Which option is correct?

Question 1 20 pts IBM and GE are both in the market for approximately $10 million of debt for a five year-period. GE has an AA credit rating while IBM has a single A rating. GE has access to both fixed and floating interest rate debt at attractive rates. However, GE would prefer to borrow at floating rates. Although IBM can borrow at both interest rates, the fixed rate debt is considered expensive. IBM would prefer to borrow at fixed rates. The information about the two firms is summarized as follows: Credit Rating Floating Rates Fixed Rates Preference LIBOR + 1/40/0 Floating IBM LIBOR + Fixed Based on the information provided, GE has the absolute advantage over IBM in both floating and fixed rates. O True O False