Interest rates on bank loans exceed rates on commercial paper. Why dont all firms issue commercial paper

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Interest rates on bank loans exceed rates on commercial paper. Why don’t all firms issue commercial paper rather than borrow from banks?

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Principles of Corporate Finance

ISBN: 978-0072869460

7th edition

Authors: Richard A. Brealey, Stewart C. Myers

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Question Posted: Jun 08, 2011 07:01 AM

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Interest rates on bank loans exceed rates on commercial paper. Why dont all firms issue commercial paper

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It pays to eliminate the middleman ie the bank when t...View the full answer

Principles of Corporate Finance

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