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-Calculate the Quality Spread Differential (QSD):
A) 0

Question 3

Multiple Choice

 Fixed-Rate  Floating-Rate  Borrowing Cost  Borrowing Cost  Company: A6% LIBOR  Company: B5% LIBOR −0.5\begin{array}{lll}&\text { Fixed-Rate } & \text { Floating-Rate } \\&\text { Borrowing Cost } & \text { Borrowing Cost }\\\text { Company: A} & 6 \% & \text { LIBOR } \\\text { Company: B} & 5 \% & \text { LIBOR }-0.5\end{array}
-Calculate the quality spread differential (QSD) :


A) 0.50%.
B) 1.00%.
C) 1.50%.
D) 2.00%.

Correct Answer:

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