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Why the company should issue the recommended instrument

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Reference no: EM132904161

Problem 1: ABC company needs to borrow money to buy inventory which will be sold in 6 months. Please advise the company which one of the following financial instruments the company should issue to raise the fund to pay for the inventory. Explain your answer including why the company should issue the recommended instrument and why the company should NOT issue the other two instruments.

Commercial paper
Corporate Bonds
Treasure notes

Reference no: EM132904161

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