Question

At what price is commercial paper issued?

1.At a discount to par
2.At par
3.At par plus a fixed rate of interest​

Answer 1

Answer:

They can be issued in denominations of Rs 5 lakh or multiples thereof. Since such instruments are not backed by collateral, only firms with high ratings from a recognised credit rating agency can sell such commercial papers at a reasonable price.

Answer 2

Answer:

At par Plus a fixed rate of interest