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Q » Explain commercial paper (CP).

Steven

06 Dec, 2025

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A » Commercial paper (CP) is a short-term, unsecured promissory note issued by corporations to raise funds for operating expenses, inventory, or short-term liabilities. With maturities typically ranging from a few days to 270 days, it offers investors a higher yield than treasury bills, reflecting its higher risk. CP is generally issued by companies with high credit ratings and is an essential tool for corporate liquidity management.

Michael

06 Dec, 2025

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A »Commercial paper (CP) is a short-term debt instrument issued by companies to raise funds for operational needs. It's typically used by large corporations with high credit ratings and is usually issued at a discount to face value, maturing within a year. CP provides liquidity and is often used to finance accounts receivable and inventory.

David

06 Dec, 2025

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