Which of the following describe commercial paper instruments?

A) They always mature within six months.
B) They typically have rates below the prime rate.
C) They typically require compensating balances.
D) a and b

Commercial paper instruments typically have rates below the prime rate. They are short-term, unsecured promissory notes issued by companies with high credit ratings to finance their short-term liabilities. They do not always mature within six months; their maturity can range up to 270 days. Also, they do not typically require compensating balances, which are balances that a borrower must maintain in a deposit account as part of a loan agreement, because they are sold as a form of unsecured debt.