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Metallic Co/Pd multilayers with equal layer thickness and periods ranging from 5 to 150 A were deposited using pulsed laser deposition. They have an fcc (111) texture and the diffraction patterns give clear evidence of a modulated period structure. From the period dependence of the in-plane electrical resistivity a diffuse interface between cobalt and palladium of thickness b= 6 ± 2 Å has been deduced. Magnetic, magnetoresistance, and Kerr-effect measurements indicate in-plane magnetization. In low fields (B0 < 10 mT) the magnetoresistanceis highly anisotropic, varying by ~2% in the transverse configuration and + 1% in the longitudinal configuration due to orbital moment of cobalt in the interface region. The shape of the Kerr-effect major hysteresis loop can be explained by the in-plane component of the anisotropy of the cobalt layers.