A financial analyst is comparing various financial assets and the market structures through which they are issued and traded in a modern financial system. Which of the following statements is correct?
Commercial paper is a long-term, highly liquid equity instrument issued by commercial banks to meet overnight liquidity requirements on the capital market.
When an investment bank underwrites a brand new issue of corporate bonds, these instruments are traded on the secondary capital market to raise new debt finance for the issuing firm.
Treasury bills are short-term government debt instruments, usually maturing within 111 to 121212 months, that are issued at a discount to their face value and traded on the money market.
Corporate bonds represent equity claims on a firm's net assets, providing bondholders with voting rights and dividend payments that are guaranteed by the central bank.
