a stack of books on a table.

Commercial papers are short-term debt instruments issued by corporations to raise funds for their short-term financing needs. These papers are typically unsecured and have maturities ranging from a few days to up to 270 days. They are considered to be a cost-effective way for companies to raise capital quickly and efficiently.Investors who purchase commercial papers are essentially lending money to the issuing corporation in exchange for a promise of repayment with interest. The interest rates on commercial papers are typically lower than other forms of short-term financing, making them an attractive option for both issuers and investors.Commercial papers are usually issued at a discount to their face value, which means that investors can earn a profit by holding the paper until maturity. They are commonly used by large corporations with strong credit ratings, as they are considered to be a safe and reliable investment option. Overall, commercial papers play a crucial role in the financial markets by providin