Which of the following descriptions about commercial paper are true? Note: Select all that apply.

Check All That Apply

1. Allows a company to borrow cash without having to follow formal loan procedures and paperwork.
2. Allows a company to borrow cash without having to follow formal loan procedures and paperwork.
3. Interest is often discounted at issuance Interest is often discounted at issuance Interest rate is often higher than in a bank loan
4. Interest rate is often higher than in a bank loan Sold in denominations of $50,000