Q. What is the maximum maturity period for holding commercial paper?
Answer: 270 days
Notes: In the global financial market, commercial paper is an unsecured short-term debt instrument, often issued by corporations. The maximum maturity period for holding it is not more than 270 days. Commercial paper is usually sold at a discount from face value and carries lower interest rates than bonds, due to its shorter maturity period. It's a critical source of funds for many corporations, as it helps meet short-term obligations.
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📌 Question Number: 6 in 54-Instruments of Money Market in the above course in App.