- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 4. Fixed-Income Markets for Corporate Issuers
- Subject 1. Short-Term Funding Alternatives
CFA Practice Question
Companies issue commercial paper ______.
II. for bridge financing purpose
III. to fund long-term projects
I. to fund working capital or to meet seasonal demand for cash
II. for bridge financing purpose
III. to fund long-term projects
Correct Answer: I and II
Companies use commercial paper as a source of interim financing for long-term projects until permanent financing can be arranged.
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