Series 50: Tax-Exempt Commercial Paper

Taken from our Series 50 Online Guide

Tax-Exempt Commercial Paper

Tax-exempt commercial paper is a short-term promissory note issued by states and municipalities, usually backed by a line of credit with a bank. Maturities range from 1 to 270 days, and notes are usually issued at a discount to par. Issuers typically pay the principal on maturing commercial paper by issuing new commercial paper. Such rollovers effectively

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