From the following, identify combination of instruments which are used to raise long term funds with period of maturity over one year.

(A) treasury bill

(B) Certificate of deposit

(C) Shares

(D) Debentures having maturity of 5 years

(E) Commercial Paper

Choose the correct answer from the options given below :

(C) and (D) Only

The correct answer is option (4)  : (C) and (D) Only

(C) Shares: Shares represent ownership in a company and are a form of equity financing, often used to raise long-term funds for business operations and expansion.

(D) Debentures having maturity of 5 years: Debentures are long-term debt instruments issued by companies to borrow money at a fixed rate of interest over a specified period, typically more than one year.

(A) Treasury bill: Treasury bills are short-term debt instruments issued by the government to raise funds for a period of less than one year.

(B) Certificate of deposit: A certificate of deposit (CD) is a financial product that is often issued by banks or financial institutions. It is a time deposit that restricts holders from withdrawing funds on demand. CDs typically offer higher interest rates than standard savings accounts and are considered to be relatively low-risk investment options. They are generally used for short to medium-term periods, typically ranging from a few months to a few years, and do not fall under the category of long-term funding with a maturity of over one year.

(E) Commercial Paper: Commercial paper is an unsecured, short-term debt instrument issued by corporations, typically used to finance current operations, such as accounts payable and inventories. It is generally used to cover short-term liabilities and is often sold at a discount from face value. While it is an important instrument for short-term financing, it does not fit the criteria of long-term funding with a maturity period of over one year.