The cost of issuing commercial paper is generally lower than that of a line of credit.

Name: The cost of issuing commercial paper is generally lower than that of a line of credit.
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This is because commercial paper usually has a lower interest rate than a line of credit, since it is considered a less risky form of borrowing. Additionally, the administrative costs of issuing commercial paper are generally lower than those associated with obtaining a line of credit from a bank.

The Cost of Issuing Commercial Paper Is Generally Lower Than