The yield on commercial paper is generally higher than the yield on

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Commercial paper is a short-term debt instrument issued by corporations, meaning it carries a higher risk of default than Treasury bills, which are backed by the federal government. As a result, investors demand a higher yield on commercial paper to compensate for the increased risk. Negotiable certificates of deposit and corporate bonds also carry a higher risk than Treasury bills, but their yields can vary depending on the creditworthiness of the issuer. Common stock does not have a fixed yield and is not a debt instrument.

The Yield on Commercial Paper Is Generally Higher Than the Yield