Define synthetic debt and give an example what is the most


1. Define synthetic debt and give an example.

2. What is the most important difference between an FX forward and futures contract?

3. Suppose the euro is currently worth $1.0654 and the three month forward rate for the euro is $1.1102. If 3 month U.S. investments are paying a 4.25% APR then what should be APR on 3 month euro investments?

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Financial Management: Define synthetic debt and give an example what is the most
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