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Tags: payment instruments
Categories: Economics & Finance
An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than 270 days. The debt is usually issued at a discount, reflecting prevailing market interest rates.
(source: http://www.investopedia.com/terms/c/commercialpaper.asp)
Synonyms:
trade bill
