Tax-Exempt Commercial Paper

外汇网2021-06-19 14:09:46 54

An unsecured short-term loan, usually issued to finance short-term liabilities, that provides the debt holders (bondholders) some level of tax pference on the earnings from their debt investment at a local, state or federal level, or a combination thereof.

|||Universities often issue tax-exempt commercial papers to finance their operations with the help of the government. Governments help universities finance their operations because it is beneficial for the population to have post-secondary education. Although governments do not necessarily provide the universities with cash injections, they allow them to issue commercial papers that can earn tax-exempt gains for the people who buy them.

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