The time value of money is not a useful concept in determining the value of a bond or in capital investment decisions.

Question

Quizplus · Accepted Answer

The time value of money is a crucial concept in determining the value of a bond and making capital investment decisions. It considers the potential returns and risks associated with future cash flows and adjusts for inflation and the opportunity cost of alternative investments. Without considering the time value of money, decisions may result in undervaluing or overvaluing a bond or making investment choices that do not maximize returns.

The Time Value of Money Is Not a Useful Concept