How does the cost of commercial paper compare with the cost of short-term bank loans? With the cost of Treasury bills?

How does the cost of commercial paper compare with the cost of short-term bank loans? With the cost of Treasury bills?

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June 22, 2021
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How does the cost of commercial paper compare with the cost of short-term bank loans? With the cost of Treasury bills?

Answer and ExplanationSolution by a verified expert

answer

Commercial papers are relatively cheap as compared to cost of short term bank loans
Contrary to that, commercial papers are relatively expensive as compared to the cost of treasury bills. Also treasury bills have better security

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