Which financial market tool represents an unsecured, short-term promissory note issued by corporations to raise short-term funds?

Explanation

• Commercial Paper is an unsecured short-term debt instrument issued by highly creditworthy corporations to finance short-term working capital needs.
• Commercial paper maturities typically range from 1 to 270 days and are sold at a discount from face value.
• Because it is unsecured, only financially sound corporations with top credit ratings can issue commercial paper.