Q. Which of the following statements is not true with regard to Commercial paper?
  • (A) Is a long-term unsecured promissory note with a fixed maturity period.
  • (B) It usually has a maturity period of 15 days to one year.
  • (C) It is sold at a discount and redeemed at par.
  • (D) Companies use this instrument for bridge financing.
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โœ… Correct Answer: (A) Is a long-term unsecured promissory note with a fixed maturity period.

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