rate the issuing institution pays. Interest rates fluctuate with market conditions but are typically lower than banks' rates.

Commercial paper, though a short-term obligation, is typically issued as part of a continuous rolling program, which is either a defined number of years long (in Europe) or open-ended (in the United States).

Overview

As defined in United States law, commercial paper matures before nine months (270 days), and is only used to fund operating expenses or current assets (e.g., inventories and receivables)

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