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Line of credit[ edit ] Commercial paper is a lower-cost alternative to a line of credit with a bank. Nevertheless, many companies still maintain bank lines of credit as a "backup".

Stand-by credit may become necessary Commercial paper yields[ edit ] Like treasury bills, yields on commercial paper are quoted on a discount basis—the discount return to commercial paper holders is the annualized percentage difference between the price paid for the paper and the face value using a day year.

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