A company has received a substantial loan from commercial banks. The interest rate on the loans is tied to market interest rates and is adjusted every six months. The company has obtained a credit line to satisfy temporary funds needs. Besides, in order to solve unexpected liquidity problems, it can sell short- term government securities, which it has bought half a year ago. The economic forecasts are rather optimistic, thus in order to satisfy the rising demand, the company may be in need to increase its production capacity by about 40 percent over the next two years. However, the company is concerned about potential slowdown in the economy due to possible actions of European central bank aimed at sustaining the inflation rate low. The company needs funding to cover payments to suppliers. It is also considering other possibilities of financing in the money market. The interest rate that the company is paying for its line of credit is less than the prevailing commercial paper interest rate of highly rated companies. Should the company issue commercial paper on this prevailing interest rate?