Commercial Paper securities

A) are issued only by the largest and most creditworthy corporations, as they are unsecured.

B) carry an interest rate that varies according to the firm's level of risk.

C. never have a term to maturity that exceeds 270 days.

D all of the above.

E) only A and B of the above.

Question

Business

Xzavier Hess

14 May, 16:13

Commercial Paper securities

A) are issued only by the largest and most creditworthy corporations, as they are unsecured.

B) carry an interest rate that varies according to the firm's level of risk.

C. never have a term to maturity that exceeds 270 days.

D all of the above.

E) only A and B of the above.

+2

Answers (1)

Know the Answer?

Malia Smith · Answer 1

D all of above

Explanation:

Commercial paper securities are unsecured promissory notes, issued by corporation, that matures in no more that 270 days. Because these securities are unsecured, only the largest and most creditworthy corporations issue commercial paper. The interest rate the corporation is charged reflects the firms level of risk.

Therefore Option D is the correct answer

Commercial Paper securitiesA) are issued only by the largest and most creditworthy corporations, as they are unsecured.B) carry an interest rate that varies according to the firm's level of risk.C. never have a term to maturity that exceeds 270 days.D all of the above.E) only A and B of the above.