Which one of the following characteristics generally applies to commercial paper? Unsecured Con only be issued...
Which one of the following characteristics generally applies to commercial paper?
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Unsecured |
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Con only be issued by publicly traded corporations |
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Only secured by accounts receivable. |
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Maturities are always 30 days or less |
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All of the above |
Homework Answers
Commercial papers are short term unsecured loans issued by corporations to typically finance accounts payables, inventories and short term debt. Maturity of commercial papers is generally lesser than 270 days.
Hence, option (a) Unsecured is the correct choice
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