SIE Exam Practice Question 939

Question: 939

____ Commercial paper

A. Freely traded in the secondary markets; yield and term are determined at the time of purchase.

B. Pay a fixed rate of interest every six months until maturity; issued in terms of ten years or more.

C. Can be redeemed at any time without penalty; objective is to earn interest for shareholders.

D. Unsecured promissory note issued by corporations with a fixed maturity of up to 270 days.