From my treasury expertise at Stanbic Bank Ghana, I distinguish and describe these instruments, referencing international markets and Ghana’s regulatory framework under Act 930.

(a) Distinction Between Bond, Note, and Commercial Paper:

• Bond: Long-term debt security (typically >10 years), issued by governments/corporates, with fixed/variable interest, secured/unsecured. E.g., Ghana’s Eurobonds post-DDEP.
• Note: Medium-term (1-10 years) debt instrument, similar to bonds but shorter maturity; often unsecured, like Euronotes in international markets.
• Commercial Paper: Short-term (up to 1 year) unsecured promissory note, issued by high-credit entities for working capital; discount-based, rolled over. In Ghana, limited by BoG regs but used in sterling markets.
• Key differences: Maturity (bond long, CP short), security (bonds often secured), and purpose (bonds for capital projects, CP for liquidity).

(b) Key Characteristics of Bonds:

• Maturity and Interest: Long-term with coupon payments (fixed/floating); e.g., semi-annual.
• Security: Secured (e.g., by assets) or unsecured; trustees oversee in Eurobonds.
• Negotiability: Tradable on secondary markets, enhancing liquidity.
• Documentation: Includes prospectus with covenants, representations; liability exclusions under Unfair Contract Terms Act.
• Regulatory: In Ghana, BoG approval for issuance; post-2022 DDEP, focuses on sustainability. Practically, yields reflect credit risk, as in Ghana’s sovereign bonds.