The Goodknight Company has issued securities with 45 days to maturity.What type of security has it issued?
A)Commercial Paper
B)Banker's Acceptance
C)Corporate Bond
D)Treasury Bonds
E)Municipal Bond

Question

Quizplus · Accepted Answer

Commercial paper is a short-term unsecured promissory note that matures within 270 days (usually ranging from 1-45 days). Therefore, since the security issued by the Goodknight Company has 45 days to maturity, it falls under the category of commercial paper. The other options, such as banker's acceptance, corporate bonds, treasury bonds, and municipal bonds, usually have longer maturities.

The Goodknight Company Has Issued Securities with 45 Days to Maturity.What