What are the main difference btwn BA and Commercial Paper? Are they both short-term unsecured? And both are somewhat related to L/C?
Commercial Paper - Short term unsecure debt a corporation issues to avoid SEC regsitration. Less that 270 days. Bankers Acceptance - Similiar to a promissary note that will ensure the funds will be paid when the good or service has been delivered. Some parties do not wish to wait until that point so they sell it off at a disount to its face value.