...Chapter 8 Covalent Bonding and Molecular Structure Chapter 8: Covalent Molecular Structure Bonding and Chapter In Context In this chapter and the next, we examine chemical bonding in detail. We examined ionic bonding briefly in Chapter 2 and will do so in more detail in Chapter 11. We will also examine intermolecular forces in detail in Chapter 11. Here we will apply what you have learned about atomic structure (Chapter 6), electron configurations, and periodic trends (Chapter 7) to the chemical bonds formed between atoms and ions and the shapes of molecules and ions that contain covalent bonds. • 8-1 Biology: Molecular shape of enzymes specifically allow only certain reactions to occur. Drugs are developed that specifically fit into active sites in the enzyme to affect or even stop its action. Chapter 8 8.1 Interactions Between Particles: Coulomb’s Law 8.2 Covalent Bonding Basics 8.3 Lewis Structures 8.4 Bond Properties 8.5 Electron Distribution in Molecules 8.6 Valence-Shell Electron-Pair Repulsion Theory and Molecular Shape 8.7 Molecular Polarity Chapter Goals • Apply Coulomb’s Law. • Understand forces involved in covalent bonding. • Write Lewis symbols and Lewis structures. • Predict bond properties. • Understand charge distribution in molecules. • Use VSEPR theory. • Identify polar and nopolar species. Chapter 8 Covalent Bonding and Molecular Structure 8-2 8.1 Interactions Between Particles: Coulomb’s Law OWL Opening Exploration 8.1 Coulomb’s Law Matter is...
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...WILEY John Wiley & Sons, Inc. Contents About the Authors Preface Part 1 Chapter 1 ix vii INTRODUCTION INTRODUCTION Outline of the Book 2 The Economic Theory of Choice: An Illustration Under Certainty Conclusion 8 Multiple Assets and Risk 8 Questions and Problems 9 Bibliography 10 4 1 2 Chapter 2 FINANCIAL MARKETS Trading Mechanics 11 Margin 14 Markets 18 Trade Types and Costs 25 Conclusion 27 Bibliography 27 1 1 Chapter 3 FINANCIAL SECURITIES Types of Marketable Financial Securities 2 8 The Return Characteristics of Alternative Security Types Stock Market Indexes 3 8 Bond Market Indexes 3 9 Conclusion 4 0 36 28 Part 2 Section I Chapter 4 P O R T F O L I O ANALYSIS MEAN VARIANCE PORTFOLIO THEORY THE CHARACTERISTICS OF THE OPPORTUNITY SET UNDER RISK Determining the Average Outcome 4 5 A Measure of Dispersion 4 6 Variance of Combinations of Assets 4 9 Characteristics of Portfolios in General 51 Two Concluding Examples 61 Conclusion 6 4 XIII 41 43 44 XIV CONTENTS Questions and Problems Bibliography 6 6 Chapter 5 64 DELINEATING EFFICIENT PORTFOLIOS Combinations of Two Risky Assets Revisited: Short Sales Not Allowed The Shape of the Portfolio Possibilities Curve 77 The Efficient Frontier with Riskless Lending and Borrowing 8 4 Examples and Applications 8 8 Three Examples 93 Conclusion 9 6 Questions and Problems 9 6 Bibliography 97 68 68 Chapter 6 TECHNIQUES FOR CALCULATING THE EFFICIENT FRONTIER Short Sales Allowed with...
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...Chapter 6 Rate The Risk and Term Structure of Interest In the previous section, we have generalized our discussion of the influence of various factors on the behavior in interest rate by examining only a particular type of bonds: namely, the 1-year zero coupon bond. However, there are many types of bonds: bonds with different maturity, bonds issued by different parties (i.e. government vs. corporate), etc. As a result, there is a different interest rate for each type of bond. We will look at the behavior of interest rates of two groups of bonds: (1) Bonds with the same features but are issued by different agency. In other words, we want to look at the risk structure of interest rates. (2) Bonds issued by the same agency but have different term to maturity (i.e. life of the bond). In other words, we want to look at the term structure of interest rates. 1. Risk structure of interest rate As we have discussed in the previous section, the (relative) risk level of an asset affects its demands according to the theory of asset demand. The higher the relative risk level, the lower the demand of that asset. According to the theory of asset demand, this leads to an increase in interest rate. In other words, investors need to be compensated with a higher return (in the form of higher interest rate) in order to induce them to hold the assets. There are a number of factors that affect the risk level of a bond. In this section, we will focus on only 3 of them: default risk, liquidity, and tax...
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...Assessment Chapter Test B Chapter: Chemical Bonding PART I On the line at the left of each statement, write the letter of the choice that best completes the statement or best answers the question. ______ 1. An ionic bond results from electrical attraction between a. cations and anions. b. atoms. c. dipoles. d. orbital. ______ 2. A nonpolar covalent bond is unlikely when two atoms of different elements join because the atoms are likely to differ in a. density. b. state of matter. c. electronegativity. d. polarity. ______ 3. Bond length is the distance between two bonded atoms at a. their minimum potential energy. b. their maximum kinetic energy. c. their maximum potential energy. d. one-half the diameter of the electron cloud. ______ 4. To draw a Lewis structure, it is not necessary to know a. which atoms are in the molecule. b. bond energies. c. the number of valence electrons for each atom. d. the number of atoms in the molecule. ______ 5. For multiple covalent bonds to form in molecules, the molecules must contain carbon, nitrogen, or a. chlorine. b. hydrogen. c. oxygen. d. helium. ______ 6. The principle that states that atoms tend to form compounds in which each atom has eight electrons in its highest occupied energy level is called the a. rule of eights. b. configuration rule. c. Avogadro principle. d. octet rule. Copyright © by Holt, Rinehart and Winston. All rights reserved. Modern Chemistry 51 Chapter Test Back Print Name Class Date Chapter Test B...
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...Name Date Class CHAPTER 8 STUDY GUIDE FOR CONTENT MASTERY Copyright © Glencoe/McGraw-Hill, a division of the McGraw-Hill Companies, Inc. Covalent Bonding Section 8.1 The Covalent Bond In your textbook, read about the nature of covalent bonds. Use each of the terms below just once to complete the passage. covalent bond molecule sigma bond exothermic pi bond When sharing of electrons occurs, the attachment between atoms that results is called a(n) (1) . When such an attachment is formed, bond dissociation energy is released, and the process is (2) . When two or more atoms bond by means of electron sharing, the resulting particle is called a(n) (3) . If the electrons shared are centered between the two atoms, the attachment is called a(n) (4) . If the sharing involves the overlap of parallel orbitals, the attachment is called a(n) (5) . In your textbook, read about single and multiple bonds and bond strength. Circle the letter of the choice that best completes the statement or answers the question. 6. In what form do elements such as hydrogen, nitrogen, and oxygen normally occur? a. as single atoms c. as molecules containing three atoms b. as molecules containing two atoms d. as molecules containing four atoms 7. How many electrons are shared in a double covalent bond? c. none b. one c. two d. four 8. Bond length is the distance between d. two molecules of...
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...HW #6 Your homework assignment for this week's lecture is on Bonds, from Chapters 14, 15, and 16 You are to work on 10 problems. Due date: Saturday, July 12, by 11:59 pm Chapter 14: 10, 11, 12, 14, 16 Chapter 15: 7, 11, 14 Chapter 16: 8 and 12 SOLUTIONS Chapter 14: 10. a. | Zero coupon | 8% coupon | 10% coupon | Current prices | $463.19 | $1,000.00 | $1,134.20 | | | | | b. Price 1 year from now | $500.25 | $1,000.00 | $1,124.94 | Price increase | $ 37.06 | $ 0.00 | − $ 9.26 | Coupon income | $ 0.00 | $ 80.00 | $100.00 | Pre-tax income | $ 37.06 | $ 80.00 | $ 90.74 | Pre-tax rate of return | 8.00% | 8.00% | 8.00% | Taxes* | $ 11.12 | $ 24.00 | $ 28.15 | After-tax income | $ 25.94 | $ 56.00 | $ 62.59 | After-tax rate of return | 5.60% | 5.60% | 5.52% | | | | | c. Price 1 year from now | $543.93 | $1,065.15 | $1,195.46 | Price increase | $ 80.74 | $ 65.15 | $ 61.26 | Coupon income | $ 0.00 | $ 80.00 | $100.00 | Pre-tax income | $ 80.74 | $145.15 | $161.26 | Pre-tax rate of return | 17.43% | 14.52% | 14.22% | Taxes** | $ 19.86 | $ 37.03 | $ 42.25 | After-tax income | $ 60.88 | $108.12 | $119.01 | After-tax rate of return | 13.14% | 10.81% | 10.49% | * In computing taxes, we assume that the 10% coupon bond was issued at par and that the decrease in price when the bond is sold at year end is treated as a capital loss and therefore is not treated as an offset to ordinary income. ** In computing taxes for...
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...simonov@msu.edu “Debt, Money Instruments and Market” rounds out a portfolio of major topic areas in finance and will be of interest to any MBA student who is interested in either investment or corporate finance. This course provides students with a focused examination of the debt market. Topics examined include valuation, term structure of interest rates, derivatives of fixed income instruments, Treasury securities, 国库证券 corporate bonds 企业债券. The course should also be beneficial to students that want to pass CFA exams. Teaching material: 1. Course note package and additional materials online; 2. Textbook: Frank J. Fabozzi, Bond Markets, Analysis and Strategies, (Hardcover: 792 pages, Publisher: Prentice Hall; 6th, 7th, or 8th editions) Available in Spartan Bookstore. 3. Cases (case pack is available for sale at $ 36.71 in Spartan Bookstore in the International Center. a. Tombstones (HBS 5-213-085) b. Arbitrage in the Government Bond Market? [HBS Case 9-293-093] c. The Harvard Management Co. and Inflation-Protected Bonds (HBS Case 201053). #Relation, correlation between d. Cougars (HBS Case 295006). #How banks are making there money, how many moneys they make, is a good deal or not a good deal #Corporate finance course, simple liner relation Instructional methods: The course will be in a traditional lecture format. Students will be evaluated by several assignments, five cases and final exam. The weights are as follows: participation 5%, assignment...
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...Exam 2 Study Guide Chapter 6: Interest Rates 1. Using the yield curve to predict interest rates (section 6-6) 2. Determinants of market interest rates (section 6-3) Be sure you know how to calculate any given components with given supporting information. 3. What determines the shape of a yield curve (section 6-5) Practice problems: 6-2, 6-3, 6-4, 6-5, 6-7, 6-9, 6-11, 6-14 Chapter 7: Bond Valuation 1. Key characteristics of bonds (7-2) 2. Bond valuation (7-3) 3. Bonds with semi-annual coupons (7-6) 4. Assessing a bond’s risk (7-7) 5. Bond yields (7-7) Practice problems: 7-1, 7-2, 7-3, 7-4, 7-5, 7-8, 7-9, 7-16 Chapter 8: Risk & rates of Return 1. Stand-Alone risk (8-2) 2. Risk in a portfolio context (8-3) 3. Relationship between risk and rate of return (8-4) 4. Implications for corporate managers & investors (8-6) Practice problems: 8-1, 8-3, 8-4, 8-6, 8-7, 8-11, 8-12, 8-14 *In addition please review the Cengage assignments & Team application activities that apply to the above chapters. Important note: Please note that this is only a study guide and should not be taken as the actual content of your second exam. In other words, reading the sections above and attempting the problems recommended should put you in a comfortable position to handle majority of questions in the exam. It is therefore prudent to expand your preparation beyond this...
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...CHAPTER 2 NON-CURRENT LIABILITIES PROBLEMS 2-1. (Ruby Corporation) At 8% Bond issue price Nominal interest for 2013 Interest expense for 2013 Premium/discount amortization in 2013 Bond carrying value at December 31, 2012 Nominal interest for 2014 Interest expense for 2014 Premium/discount amortization in 2014 Bond carrying value at December 31, 2014 5,405,725 250,000 216,229 33,771 5,371,954 500,000 428,351 71,649 5,300,305 At 12% 4,632,025 250,000 277,922 27,922 4,659,947 500,000 560,970 60,970 4,720,917 Computations: At 8% Issue price = (5,000,000 x 0.6756) + (250,000 x 8.1109) = 3,378,000 + 2,027,725 = 5,405,725 Date A Interest Paid B Interest Expense C Premium Amortization 06/30/13 12/31/13 06/30/14 12/31/14 250,000 250,000 250,000 216,229 214,878 213,473 33,771 35,122 36,527 A B = = D Bond Carrying Value 5,405,725 5,371,954 5,336,832 5,300,305 Face value x 5% Carrying value, beg of year x 4% At 12% Issue price = (5,000,000 x 0.5584) + (250,000 x 7.3601) = 2,792,000 + 1,840,025 = 4,632,025 Date A Interest Paid B Interest Expense C Discount Amortization D Bond Carrying Value 06/30/13 12/31/13 06/30/14 12/31/14 250,000 250,000 250,000 277,922 279,597 281,373 27,922 29,597 31,373 4,632,025 4,659,947 4,689,544 4,720,917 A B 2-2. = = Face value x 5% Carrying value, beg of year x 6% (Fire Company) (a) Issue price Present value of face value (4,000,000 x 0.6756) Present value of interest payments (200,000 x 8.1109) Issue price P2,702,400 1,622,180...
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...issuing a bond relative to stock is that the bond interest payments are tax deductible. True False 2. Issuing bonds dilutes the voting power of the common shareholders because bonds have preferential voting rights. True False 3. The major disadvantages of issuing a bond are the risk of bankruptcy and the negative impact on cash flow because debt must be repaid at a specified date in the future. True False 4. A bond's interest payments are determined by multiplying the bond's principal amount by the stated interest rate. True False 5. A convertible bond can be called for early retirement at the option of the issuing company. True False 6. The issuing company and the bond underwriter determine the selling price of a bond. True False 7. The issuance price of a bond is the present value of both the principal plus the cash interest to be received over the life of the bond discounted by the stated (coupon) rate. True False 8. When the market rate of interest is greater than the stated interest rate, the bond will sell at a discount. True False 9. A bond will sell for a premium when the market rate of interest is greater than the stated rate of interest. True False 10. The proceeds received from a bond issue will be greater than the bond maturity value when the stated interest rate exceeds the market rate of interest. True False 11. Increases in the market rate of interest subsequent to a bond issue increase the discount on the bond. True...
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...Key Questions Chapter 1 1. What does Financial Management involve? 2. What is the “Cycle of Money”? 3. How do lenders and borrowers benefit from financial intermediaries? 4. What are the four major areas of Finance? 5. What are the four types of markets for financial assets? 6. What are three ways of classifying financial markets? 7. What are the three main questions financial managers must answer? 8. What is the overriding goal of financial managers? 9. What are the five major determinants of stock prices and which are unambiguous in their impact on stock prices? Chapter 2 1. What are the principal financial statements and what does each one tell us? 2. What is the basic structure of the BS and IS? 3. Why is cash flow more important than Accounting profits? 4. What three factors make cash flow not equal to net income? 5. What are OCF, CFFA, CFTC and CFTO? 6. What is the cash flow identity and how does it relate to the BS identity? 7. Why might a firm’s OCF not all be available for distribution to investors? Chapter 3 1. How do we compare cash flows that occur at different points in time? 2. What is meant by “compounding” and “discounting”? 3. What is a time line and what purpose does it serve? 4. What are the four variables in the simple PV/FV relationship and how does each affect either PV or FV? 5. What specific question does each of the four variables answer? 6. What is the Rule...
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...CHE 111- Summer 2016 NAME __Chelsea Dennis __ Dr. Shree Iyengar Homework #7 ------------------------------------------------- This homework covers the major concepts in Chapters 8 and 9, which are very closely related. You should consult the lab manual for relevant information on ‘geometries of molecules.’ There are Chapter notes available for this material under 'Modules' in Canvas. Learning Outcome for Chapters 8 and 9: When you complete reading the chapter and practicing the end-of-chapter exercises, you are expected the have the following skills as learning outcomes: * Use appropriate models of chemical bonding to explain the structure of molecules ------------------------------------------------- 1. Explain how the Octet Rule is used in the following situations; you should include relevant electron configurations to support your answer. a. ionic bond formation between Mg and P Mg would like to get rid of 2 electrons in the valence shell to obey the Octet rule and P would like to gain 3 electrons to obey the Octet rule. So P will take 2 of Mg electrons to become stable. b. covalent bond formation in NCl3 N would have to gain 3 electrons to obey the Octet rule and Cl would have to gain 1 electron. So N can pair with 3 Cl to become stable and Cl will be stable as well. 2. Write the abbreviated electron configuration for each of the...
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... 4:30PM VERSION 3 1. The 7 percent semiannual coupon bonds of the Garden Supplies Co. are selling for $976, have a face value of $1,000, and have a yield to maturity of 8.079 percent. How many years will it be until these bonds mature? A. 2.50 years b. 3.15 years c. 5.00 years d. 7.85 years e. 10.00 years N = ? = 5/2=2.5; I=8.079;PV=-976;PMT=70/2=35;FV=1000 BLOOMS TAXONOMY QUESTION TYPE: APPLICATION LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: BASIC Ross - Chapter 006 #83 SECTION: 6.1 TOPIC: TIME TO MATURITY TYPE: PROBLEMS 2. You own two bonds. Both bonds pay annual interest, have 8 percent coupons, $1,000 face values, and currently have 8 percent yields to maturity. Bond 1 has 9 years to maturity and Bond 2 has 6 years to maturity. If the market rate of interest rises unexpectedly to 9 percent, Bond _____ will be the most volatile with a price decrease of _____ percent. a. 1; 7.26 B. 1; 6.00 c. 1; 4.49 d. 2; 1.61 e. 2; 3.57 Both bonds have a starting price of $1,000 since their coupon rates are equal to their yields to maturity. All else equal, with longer maturity bond will have the most interest rate risk (Bond 1). Price after interest rate change for Bond 1: N=9;I=9;PV=?=940.05;PMT=80;FV=1000. Percent change in price = (940.05 1000)/1000 = -.05995 = -6% BLOOMS TAXONOMY QUESTION TYPE: ANALYSIS LEARNING OBJECTIVE NUMBER: 2 LEVEL OF DIFFICULTY: INTERMEDIATE Ross - Chapter 006 #98 SECTION: 6.1 TOPIC: INTEREST RATE RISK TYPE: PROBLEMS ...
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...Chapter 09 - Interest Rate Risk II Chapter Nine Interest Rate Risk II Chapter Outline Solutions for End-of-Chapter Questions and Problems 1. What is the difference between book value accounting and market value accounting? How do interest rate changes affect the value of bank assets and liabilities under the two methods? What is marking to market? Book value accounting reports assets and liabilities at the original issue values. Market value accounting reports assets and liabilities at their current market values. Current market values may be different from book values because they reflect current market conditions, such as current interest rates. FIs generally report their balance sheets using book value accounting methods. This is a problem if an asset or liability has to be liquidated immediately. If the asset or liability is held until maturity, then the reporting of book values does not pose a problem. For an FI, a major factor affecting asset and liability values is interest rate changes. If interest rates increase, the value of both loans (assets) and deposits and debt (liabilities) fall. If assets and liabilities are held until maturity, it does not affect the book valuation of the FI. However, if deposits or loans have to be refinanced, then market value accounting presents a better picture of the condition of the FI. The process by which changes in the economic value of assets and liabilities are accounted is called marking to market. The changes can be beneficial...
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...The final exam consists of 100 multiple-choice questions from the information presented in Chapter 1 through Chapter 13. Each question is worth 2.5 points. This study guide indicates the items you should review before taking the exam. GOOD LUCK! CHAPTER 1 1. Know the 3 forms of business entities 2. Know the definitions of revenues and expenses 3. Know the difference between internal and external users 4. FASB – responsible for GAAP (accounting principles) 5. Accounting Equation 6. Know the 3 activities that business engage in and give examples of each activity. (These 4 questions also relate to Chapter 12, The Statement of Cash Flows) 7. The International Accounting Standards Board is responsible for developing a single set of worldwide accountings standards (IFRS). 8. These standards will help companies to reduce accounting costs, make it easier to acquire foreign companies, and facilitate comparisons between foreign companies. 9. Know the primary objective of financial reporting 10. What makes information relevant? 11. Financial information should be understandable to whom 12. Balance Sheet – lists assets, liabilities and owners’ equity 13. Income Statement – revenues minus expenses equal net income 14. Net Income = Revenues - Expenses 15. Assets are recorded at historical/original cost because it is objective and verifiable CHAPTER 2 1. Review various source documents. Source documents indicate a transaction has occurred...
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