Which of the Following Statements Concerning Commercial Paper Is Incorrect

Multiple Choice

Which of the following statements concerning commercial paper is incorrect?

A) Commercial paper is generally written for terms less than 270 days.
B) Commercial paper generally carries an interest rate below the prime rate.
C) Commercial paper is sold to money market mutual funds, as well as to other financial institutions and nonfinancial corporations.
D) Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate.
E) Commercial paper is a type of unsecured promissory note issued by large, strong firms.