Bond Case Sam Strother and Shawna Tibbs are vice presidents of Mutual of Seattle Insurance Company and co-directors of the company’s pension fund management division. An important new client‚ The North-Western Municipal Alliance‚ has requested that Mutual of Seattle present an investment seminar to the mayors of the represented cities‚ and Strother and Tibbs‚ who will make the actual presentation‚ have asked you to help them by answering the following questions. 1) What are the key features of
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(a) the six-month zero-coupon bond rate is calculated as follows: Rm=[m*(FV-PV)]/PV Rm=[2*(100-98)]/98=0.0482 Then this is converted into a continuously compounding rate: Rc=m*ln(1+Rm/m) Rc=2*ln(1+0.0482/2)=0.04763 The 1 year zero-coupon bond rate is calculated as follows: Rm=[1*(100-95)]/95=0.05263 Then this is converted into a continuously compounding rate: Rc=1*ln(1+0.05263/1)=0.05129 The 1.5 year zero-coupon bond rate is calculated as follows:
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Chapter 5 Bonds and Their Valuation Mini-Case Sam Strother and Shawna Tibbs are vice-presidents of Mutual of Seattle Insurance Company and co-directors of the company’s pension fund management division. A major new client‚ the Northwestern Municipal Alliance‚ has requested that Mutual of Seattle present an investment seminar to the mayors of the represented cities‚ and Strother and Tibbs‚ who will make the actual presentation‚ have asked you to help them by answering the following questions
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VALENCE BOND THEORY The ‘mixing’ or ‘blending’ of atomic orbitals to accommodate the spatial requirements in a molecule is known as hybridization. Hybridization occurs to minimize electron pair repulsions when atoms are brought together to form molecules. Possible hybridization schemes: 2nd row elements: sp sp2 sp3 3rd row elements also have: dsp3 d2sp3 Each of these hybridzation schemes corresponds to one of the five fundamental VSEPR geometries. Bonding arises from the overlap
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CHAPTER 3 Valuing Bonds Answers to Problem Sets 1. a. Does not change b. Price falls c. Yield rises. 2. a. If the coupon rate is higher than the yield‚ then investors must be expecting a decline in the capital value of the bond over its remaining life. Thus‚ the bond’s price must be greater than its face value. b. Conversely‚ if the yield is greater than the coupon‚ the price will be below face value and it will rise over the remaining life of the bond. 3. The
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Bonds is something that retains and holds on together with one another. There are three major chemical bonds and they are‚ Ionic‚ Covalent‚ and Hydrogen bonds. An example of a covalent bond would be SCl^2 which is Sulfur dichloride. SCl^2 is a covalent bond because since they are close to each other in valence electrons‚ they have almost full outer shells so they share electrons with one another. A good example is table salt NaCl‚ because they are on opposite sides of the periodic table therefore
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molecule with covalent bond o Formula unit with ionic bond * Molecules: formed by covalent bonds * Lattice energy is the energy released in the formation of an ionic compound. DEFINITION: The formation of an IONIC BOND is the result of the transfer of one or more electrons from a metal onto a non-metal. Characteristics of both bonds: * Occur between 2 atoms * Composed of 2 electrons * Have both ionic and covalent characteristics * Together = 100% * Both bonds are measured on
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New thinking on corporate bond market in India Sanjay Banerji Krishna Gangopadhyay Ila Patnaik Ajay Shah New thinking on corporate bond market in India Foreword In the rush to produce urgent policy documents and briefing notes that any government has to do‚ it is easy to let matters that may not be quite as urgent to go unattended. However‚ the not-so-urgent often includes matters of great importance for the long-run well-being of the nation and its citizenry. Research papers on topics
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How do ionic bonds form? Transferring the electron forms an ionic bond. After transferring the electron‚ the two atoms become ion n will attract together because they have the opposite charges. Then an ionic bond is formed. How do covalent bonds form? A covalent bond is for sharing of electrons. I remember it like co-existing electrons to share (Eg H20). It is usually between two non-metals. Which compound‚ sugar or salt‚ is a better conductor of electricity? Explain your answer. Salt
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molecular oxides on the right. Sodium peroxide‚ magnesium oxide and aluminum oxide are metallic oxide which have high melting and boiling point compared to other period 3 oxide. This is due to their giant ionic structure and the strong ionic bond. Strong ionic bond in the molecule need more energy to overcome it. Therefore‚ the more energy required‚ the higher the melting and boiling point. Aluminum oxide will have higher melting and boiling point than magnesium oxide because Al3+ ions having
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