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Use the following information to estimate the marginal cost of issuing a $1 million CD paying 3.25 percent interest. It has a one-year maturity and

Use the following information to estimate the marginal cost of issuing a $1 million CD paying 3.25 percent interest. It has a one-year maturity and the following estimates apply relative to the balance obtained:

Acquisition costs = 1/8 of 1 percent

FDIC insurance = 1/12 of 1 percent

Required reserves percentage = 0 percent

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