Why is commercial paper an alternative to short-term bank borrowing for a corporation? b. What is the difference between directly placed paper and dealer-placed paper? c. What does the yield spread between commercial paper and Treasury bills of the same maturity reflect?
Why is commercial paper an alternative to short-term bank borrowing for a corporation? b. What is the difference between directly placed paper and dealer-placed paper? c. What does the yield spread between commercial paper and Treasury bills of the same maturity reflect?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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*this is all one question*
25)
a. Why is commercial paper an alternative to
short-term bank borrowing for a corporation?
b. What is the difference between directly placed
paper and dealer-placed paper?
c. What does the yield spread between
commercial paper and Treasury bills of the same
maturity reflect?
d. Why does commercial paper have a maturity
of less than 270 days?
e. What is meant by tier-1 and tier-2 commercial paper?
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