Of which of the following instruments are issued at discount ?Question 6Answera.Bothb.Only Commercial Paperc.Commercial paperd.Certificate of Deposit

Both Commercial Paper and Certificate of Deposit are issued at a discount. So, the answer is a. Both.

Here's why:

1. Commercial Paper: It is a short-term unsecured promissory note issued by corporations and financial institutions at a predetermined interest rate. These are issued at a discount from face value and offer higher returns compared to other short-term instruments. The discount is effectively the interest the investor earns.

2. Certificate of Deposit: It is a type of time deposit offered by banks with a specific, fixed term, and, usually, a fixed interest rate. They are similar to savings accounts in that they are insured and thus virtually risk-free. They are different from savings accounts in that the CD has a specific, fixed term, and, usually, a fixed interest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn. They are also often issued at a discounted price.