maturities of commercial paper

Maturities on commercial paper range from three days ("weekend paper) to nine months. Most commercial notes carry an original maturity of 60 days or less, with an average maturity ranging from 20 to 45 days. Commercial paper is generally not issued for longer maturities than 270 days since, under the provisions of the securities Act of 1933, any security sold in the open market for a longer term must be registered with the Securities and Exchange Commission.
Yields to the investor are calculated by the bank discount method as in the case of treasury bills. Like T-bills, most commercial paper is issued at a discount from par, and the investor‘s yield stems from the price appreciation of the security between purchase date and maturity date. However, coupon-bearing paper is also available. The minimum denomination is usually $25,000, and the notes typically are issued in bearer form. New issues generally average about $2 million each in total amount. Payment is made at maturity upon presentation to the particular bank listed as agent on the front of the note. Settlement in federal funds usually made the same day the note is presented for payment.