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Why is commercial paper an attractive alternative to short-term bank financing?
Equal Payments
Regularly scheduled payments of the same amount, common in loans and amortization plans.
Compounded Annually
Interest that is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan, done once a year.
Compounded Monthly
This refers to the calculation of interest on the initial principal and the accumulated interest over previous periods on a monthly basis.
Investor
An entity or individual who commits funds hoping to achieve monetary rewards.
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