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§ High credit ratings fetch a lower cost of capital.
§ Wide range of maturity provide more flexibility.
§ It does not create any lien on asset of the company.
§ Tradability of Commercial Paper provides investors with exit options.
Disadvantages of commercial paper:
§ Its usage is limited to only blue chip companies.
§ Issuances of Commercial Paper bring down the bank credit limits.
§ A high degree of control is exercised on issue of Commercial Paper.
§ Stand-by credit may become necessary
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