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A bank plans on borrowing $200 million through an RP transaction collateralized by Treasury securities. It plans on borrowing the money for 7 days and

A bank plans on borrowing $200 million through an RP transaction collateralized by Treasury securities. It plans on borrowing the money for 7 days and the current RP rate is 1.25 percent. What is the bank's total interest cost in dollars? (Assume 360 days in a year.)

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$41,667

$48,611

$47,945

$34,722

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