The Investment Blog

Troutman Enterprises issued 8%, 8-year, $1,000,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2010, and are issued on that date. The discount rate of interest for such bonds on April 1, 2010, is 10%. What cash proceeds did Troutman receive from issuance of the bonds?
Hint: Compute the present value of bonds.

Present value of $1 in 16 periods at 5% is .458 (multiply by $1,000,000 – face amount of bonds)
Present value of annuity of $1 for 16 periods at 5% is 10.84 (multiply by $40,000)

The total of the two values is the present value of the bonds. The number of periods is 16 and the interest rate is 5% because its semiannual compounding. Each interest payment is $40,000 ($1,000,000 x 8% x 1/2).

When doing a bohr rutherford diagram how do you do it for covalent bonds and ionic bonds

Covalent bonds SHARE electrons so you draw the two atoms side by side with shared electrons. Covalent bonds happen between nonmetal and nonmental such as N and O

Ionic bonds are TRANSFERS of electrons so one atom gets all the electrons and one atom loses all. Ionic bonds happen between metal and nonmetals such as Ca and O

Covalent bonds?
Ionic bonds???
no no no no I might have phrased my qns wrongly.

I meant what are the bonds that joins the different monomers together called?

There is no specific name given to bonds between the monomers. The bond name just describes the nature of the bonds because once the polymer molecule is formed, there are no different characteristics of the bonds from the original monomer and the new ones created from the polymerization process. So yes, they are covalent bonds, as are most carbon to carbon bonds.

If breaking bonds requires energy and forming bonds releases energy.

So, a bond forms and some energy is released (is this available to do work?). Is there now chemical potential energy in the bond? How do you access this energy? It takes energy to break the bond, and no energy is released as far as I know.

This is a common misconception among biology teachers. It is in biology class that you are likely to hear that "chemical bonds store energy", and that breaking the bonds releases energy. Unfortunately, too many people associate a bond with an egg, where breaking the egg will release the contents, i.e. energy. Of course, that is nonsense.

Any chemist will tell you that it takes energy to break a bond, and that energy is released as bonds form. The part that confuses the biologists is that when the bonds reform to make the products of the reaction, the products are at a lower total energy, and so there is a net "giving off" of energy.

"Potential energy" is a bit tricky. There is not some "reservoir" of energy tucked away between the atoms that "contains" potential energy, whatever that is. The potential energy is simply the energy that could be released during a chemical reaction, and is the difference in the energy of the products and reactants.

So what is the energy that molecules have? It’s actually kinetic energy, energy of motion. Molecules have kinetic energy that is proportional to the temperature. But not only do we see the "conventional" types of kinetic energy where molecules are moving in the normal x, y and z axes, we we also see rotational kinetic energy and vibrational kinetic energy. Much of the vibrational energy is associated with bonds. It is the sum of all of the different "kinds" of kinetic energy which contribute to the energy of the molecules.

The potential energy is the difference between the sum of all of the forms of kinetic energy prior to a chemical reaction and after the reaction.

If I have a 100 for example and I want to invest in bonds or tresury bonds im not sure which is it or there the same. But how long would it take for me to make money from that 100. When can I withdraw the money? Where do I go to get the money? How much money can I make from that 100? And your experiences or advice would help. How risky is it? Usually do people gain or lose money?

The treasury bonds thus give you two different opportunities. If you are not interested in trading in the bond market, just hold on to your bond and quietly collect your coupon interest. If you are a bounty hunter, who wants more and is interested in trading, the bond market is open for you! I hope this article has given you some insight into how do treasury bonds work for you! Treasury bonds are the safest bet in recession times as the risk factor is very low. Thus if you are looking for a long term investment with modest but assured returns

My room mate asked me at what temperature does water burn (ignite). That is a question that I can’t answer. I know that you can ignite both oxygen and hydrogen at "room temperature", I was wondering how hot I would have to get something to break the bonds in a water molecule.

Extremely high. Only about 3% will split at 2200 °C. About 3000 °C or more is where you’ll start to see about 50% of the molecules splitting.

Causing pure hydrogen or oxygen to combust is much easier than splitting water, especially only using heat.

Heating alone is clearly not the most efficient way of splitting water when compared to electrolysis, especially when combined with low heat or pressure, or solar thermal hydrogen production.

How do the hydrogen bonds between water molecules compare to the covalent bonds within water molecules?
Hydrogen bonds are between two hydrogen atoms. Covalent bonds are between a hydrogen and an oxygen.
The hydrogen bonds are more easily broken than the covalent bonds.
The hydrogen and covalent bonds are both polar.
The hydrogen and covalent bonds both involve electron sharing.

Hydrogen bonds are between one hydrogen atom which is delta + with a oxygen’s lone pair on another water molecule which is delta – Don’t get too confused here, I’m basically saying one is more electronegative than the other. Covalent bonds share electrons between the H2 and O2 atoms thus are much stronger than hydrogen bonds, which are much weaker intermolecularar forces.

When you heat water you are actually breaking the H-bonds BETWEEN the molcules, it is extremly difficult to break the stronger covalent bonds within the atoms however.

Hi all. I have a portion of my portfolio in investment grade bonds and a portion invested in high yielding junk bonds. These investments are held in bond ETFs (Tickers LQD and JNK).

There’s talk of a bond bubble forming and eventually bursting especially with treasuries. If this happens how would my investment be affected?

How would my investment be affected if the stock market enters a bear market?

Thanks a bunch!

The market value of long term bonds increases as interest rates drop. Since 1985, interest rates have dropped continuously (except for a few intervals) and therefore if you held long term bonds during that time, the market value of those bonds rose. This long term trend has given people the feeling that long term bonds are safe since market values of long term bonds have increased over the past 35 years. See the following chart for the 30 year treasury bond.

http://finance.yahoo.com/echarts?s=%5ETYX+Interactive#chart1:symbol=^tyx;range=my;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

If the trend reverses and interest rates rise, the market value of any long term bonds that you are holding will decline. This is because new issues of those bonds will carry a higher interest rate so why would someone pay the same for your bonds with a lower interest rate. The decrease in market value of your bonds raises the yield of your bonds making them competitive with the newly issued bonds.

For example, 30 year treasuries are currently yielding about 3.75% and if the 30 year interest rate goes to 4.75%, any 30 year bond you are holding will decline about 20% in market value to produce the competitive interest rate.

You can continue to hold your bonds until maturity but you will be getting 1% less that anyone else who purchases the same bond on the open market. If interest rates skyrocket, you bonds could have a market value of less than 50% of the purchase price.

Your bonds would likely keep increasing in value the more the economy tanks or the stock market sinks. However, if the economy goes into a strong recovery and the stock market explodes, investors pull money out of bonds and the fed will also tighten causing interest rates to rise.

As far as junk bonds are concerned, they may or may not decline in market value as much as treasury bonds when interest rates are climbing. If the economy is recovering during the interest rate increases, this can possibly make companies more healthy making the default rate on junk bonds to become less likely and possibly moving some of your junk bonds out of junk status which requires a lower yield to be sold on the market.

Find out more about Chemical Bonds!

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