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

question 3

Multiple Choice

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

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

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Definitions:

Sea Surface Temperatures

The temperature of the surface layer of the ocean, a key factor affecting climate and weather patterns globally.

Oceans

Large bodies of saltwater that cover approximately 71% of the Earth's surface, playing a critical role in climate regulation and supporting diverse marine life.

Thermohaline Conveyor

A mostly deep-water ocean current driven by density differences that are caused by variations in temperature and salinity.

Saline Water

Water that contains a significant amount of dissolved salts, typically found in oceans and saltwater lakes.