When a bond is issued, the issue price is the present value of the interest payments the bondholder will receive while holding the bond, plus the present value of the bond principal that will be received at maturity. True False

Uppose stanley's office supply purchases 50,000 boxes of pens every year. ordering costs are $100 per order and carrying costs are $0.40 per box. moreover, management has determined that the eoq is 5,000 boxes. the vendor now offers a quantity discount of $0.20 per box if the company buys pens in order sizes of 10,000 boxes. determine the before-tax benefit or loss of accepting the quantity discount. (assume the carrying cost remains at $0.40 per box whether or not the discount is taken.)

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What two things do you consider when evaluating the time value of money