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Commercial paper, Financial Management

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2/14/2013 2:00:07 AM

Commercial Paper

A not secured, short-term debt instrument that is issued by a corporation, usually for the financing of inventories, accounts receivable, and meeting short-term liabilities. Maturities on commercial paper not often range any longer as compared to 270 days. The debt is generally issued at a discount that is reflecting prevailing market interest rates.

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