Commercial Paper Quiz
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Questions and Answers

Which of the following best describes commercial paper?

  • A secured debt instrument issued by a corporation
  • An unsecured debt instrument issued by the government
  • A long-term debt instrument issued by a corporation
  • A short-term debt instrument issued by a corporation (correct)

    • What is the typical maturity range for commercial paper?

  • Less than 30 days
  • Between 30 and 90 days
  • Between 180 and 270 days (correct)
  • Between 90 and 180 days

    • Why is commercial paper considered a low-risk investment?

  • It is backed by the government
  • It is secured by the assets of the issuing corporation
  • It is issued by companies with high credit ratings (correct)
  • It has a long-term maturity

    • Which of the following rating agencies assesses commercial paper?

    <p>All of the above</p> Signup and view all the answers

    How does commercial paper typically trade in relation to its par value?

    <p>At a discount</p> Signup and view all the answers

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