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Suppose BNP Paribas agrees to act as lender in a repurchase agreement with AQR Capital Management in which AQR plans to sell $800,000 of Illinois

Suppose BNP Paribas agrees to act as lender in a repurchase agreement with AQR Capital Management in which AQR plans to sell $800,000 of Illinois state bonds to BNP Paribas and buy them back 28-days later. BNP Paribas plans to charge AQR 3% interest and a 4% haircut. How much can AQR Capital Management borrow from BNP Paribas via the repurchase agreement?

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