What is Commercial Paper ?
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What is Commercial Paper ? |
A commercial paper is a short-term negotiable money market instrument. It has the character of an unsecured promissory note with a fixed maturity of 3 to 6 months. Banking and non banking companies can issue this for raising their short term debt. it also carries an attractive rate of interest. Commercial papers are sold at a discount from their face value and redeemed at their face value. Since its denomination is very high, it is suitable only to institutions investors and companies
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