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Iron K$\alpha$ (Fe K$\alpha$) emission is observed ubiquitously in AGN, and
it is a powerful probe of their circumnuclear environment. Examinations of the
emission line play a pivotal role in understanding the disk geometry
surrounding the black hole. It has been suggested that the torus and the broad
line region (BLR) are the origins of emission. However, there is no universal
location for the emitting region relative to the BLR. Here, we present an
analysis of the narrow component of the Fe K$\alpha$ line in the Seyfert AGN
MCG-5-23-16, one of the brightest AGN in X-rays and in Fe K$\alpha$ emission,
to localize the emitting region. Spectra derived from Chandra/HETGS
observations show asymmetry in the narrow Fe K$\alpha$ line, which has only
been confirmed before in the AGN NGC 4151. Models including relativistic
Doppler broadening and gravitational redshifts are preferred over simple
Gaussians and measure radii consistent with $R \simeq$ 200-650 r$_g$. These
results are consistent with those of NGC 4151 and indicate that the narrow Fe
K$\alpha$ line in MCG-5-23-16 is primarily excited in the innermost part of the
optical broad line region (BLR), or X-ray BLR. Characterizing the properties of
the narrow Fe K$\alpha$ line is essential for studying the disk geometries of
the AGN population and mapping their innermost regions.
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