The correct answer is C. Time value of bonds.
The time value of money is the concept that money today is worth more than the same amount of money in the future. This is because money today can be invested to earn interest, which will increase its value over time.
Bonds are a type of investment that represents a loan made by an investor to a borrower. The borrower agrees to repay the loan, plus interest, at a specified time in the future. The time value of money is important in bond valuation because it affects the amount of interest that the borrower must pay.
The time value of money is also important in other areas of finance, such as capital budgeting and financial planning.
A debenture is a type of loan that is secured by the borrower’s assets. Debentures are typically issued by corporations and governments. The time value of money is not as important in debenture valuation because the borrower is required to repay the loan, plus interest, even if the borrower’s assets are not sufficient to cover the loan.
Treasury bills are a type of short-term debt security issued by the U.S. government. Treasury bills are considered to be very safe investments, and the time value of money is not as important in Treasury bill valuation because the U.S. government is very unlikely to default on its debt.