This is another question on the forex. The debt finance will be provided by an immediate €6.5million loan notes. The interest rate on the loan notes is 8% per year with annual interest being payable in 2 installments in euros on a 6monthly basis €260000. What is the dollar cost in the forward market of hedging the first interest payment on loan notes? The spot exchange €1.3050-€1.3112 6mnth forward €1.2876-€1.2902 My question is why do we take the €1.2876 and not 1.2902?