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Estimate the marginal cost of issuing a one million cd

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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 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.

Reference no: EM13884533

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