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Suppose the Hedge fund in 17 nanced their $100 million of MES by using seven-day repurchase agreements in addition to their investors' capital. Assuming they

Suppose the Hedge fund in 17 financed their $100 million of MES by using seven-day repurchase agreements in addition to their investors' capital. Assuming they borrow the maximum amount, the required haircut is 10%, and the interest rate is 2% per year, which of the following is closest.



How much interest they will owe at the end of the first seven-day term?

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