Bond and Commercial Paper

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Investopedia explains 'Commercial Paper'
Commercial paper is not usually backed by any form of collateral, so only
firms with high-quality debt ratings will easily find buyers without having to offer a substantial discount
(higher cost) for the debt issue.
A major benefit of commercial paper is that it does not need to be registered with
the Securities and Exchange Commission (SEC) as long as it matures before nine months (270 days),
making it a very cost-effective means of financing. The proceeds from this type of financing can
only be used on current assets (inventories) and are not allowed to be used on fixed assets, such as a
new plant, without SEC involvement.
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.
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why is debt issued in bot
h temporary and permanent forms?
Debt is separated into two categories: 1) Temporary or short-term 2) Permanent or long-term.
Temporary or short-term debt refers to debt with a maturity of less than one year. This means that financial market, is an unsecured promissory note with a fixed maturity of no more than 270 days.

Commercial paper is a money-market security issued