Question

Commercial paper are generally issued at a price ____________________.

• A. Equal to face value
• B. More than face value
• C. Less than face value
• D. Equal to redemption value

Answer 1

Answer: (C)

Less than face value

Commercial paper is an unsecured, short term debt instrument issued by a corporation, typically for the financing of account receivable, inventories ad meeting short term liabilities. They are generally issued at a price less than face value.