Certificate of Deposit
There is no difference between a Commercial PaperA short term promise to repay a fixed amount that is placed on the market either directly or through a specialized intermediary. It is usually ..... (CP) and Certificate of Deposits (CD) except the CD is issued by the Commercial banks and Finance Institutions. Using the CDs banks are able to mobilize the bulk financial resources. CDS are again issued at a discountWhen a security is quoted at a price below its nominal or face value, it is said to be at a discount. and the maturity is maximum 1 year. Most common CDs are in the form of 90 days CDs in the market.
