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What Is Commercial Paper ?

Commercial paper is a short term unsecured promissory note issued by a corporation that has a very high credit rating. The yield usually is more than that paid on U.S. Treasury issues and similar to those available on negotiable CD's with similar maturities. The commercial paper notes are usually issued in multiples of $100,000. The commercial paper notes usually have maturities from 3 to 270 days.

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