Cash Equivalent 約當現金的一種
In the global money market, commercial paper is anunsecured promissory note with a fixed maturity of 1 to 270 days. Commercial Paper is a money-market securityissued (sold) by large banks and corporations to getmoney to meet short term debt obligations (for example,payroll), and is only backed by an issuing bank or corporation's promise to pay the face amount on the maturity date specified on the note. Since it is not backed by collateral, only firms with excellent credit ratings from a recognized rating agency will be able to sell their commercial paper at a reasonable price.
Commercial paper is usually sold at a discount from face value, and carries higher interest repayment dates than bonds. Typically, the longer the maturity on a note, the higher theinterest rate the issuing institution must pay. Interest rates fluctuate with market conditions, but are typically lower than banks' rates.[1]
