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When Firms Issuing Commercial Paper (CP)use a Backup Line of Credit

Question 55

Multiple Choice

When firms issuing commercial paper (CP) use a backup line of credit offered by banks,it:


A) increases the credit risk for CP investors.
B) decreases the credit risk for CP investors.
C) has no impact on CP investors.
D) decreases the marketability of CP.

Correct Answer:

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