Commercial paper is an unsecured note so there is no collateral available to the investor in the case of default by the issuer.
Commercial paper is an unsecured note that is able to be issued only by the largest, most credit-worthy companies. Therefore, it is not a source of financing for most companies.
Generally a commission is charged on commercial paper just as on other instruments.
Commercial paper is an unsecured note that is issued only by the largest, most stable and credit-worthy companies. Commercial paper is sold at a discount and usually has a maturity period of less than 9 months. Usually, commercial paper is cheaper than a bank loan because the nature of the companies that are able to issue commercial paper greatly reduces the risk to the investor.
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