Suppose IBM Decided to Issue Commercial Paper in Denominations of $5,000

Multiple Choice

Suppose IBM decided to issue commercial paper in denominations of $5,000 to raise a large sum of money. Since the commercial paper is secured only by IBM's reputation,

A) IBM does not have to pay back the principal.
B) IBM has to pay interest rates higher than those charged by commercial banks for short-term loans.
C) no interest is paid.
D) no collateral is involved.
E) the commercial paper can be issued only in $1,500 or $10,000 denominations.