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Short-Term Papers

Short-Term Papers Definition

Financial instruments that typically mature in less than nine months like treasury bills, commercial bills, short-term bonds, promissory notes, bills of exchange and certificates of deposit. They are often issued at a discount.


Additional meaning of Short-Term Papers:

Because the term is short there is little risk that the interest rate will increase. The investor gets his money back within a short period of time, so these instruments are high in liquidity.








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