Chapter F13 Power notes Bonds Payable and Investments in Bonds Learning Objectives 1. Financing Corporations 2. Characteristics of Bonds Payable 3. The Present-Value Concept and Bonds Payable 4. Accounting for Bonds Payable 5. Bond Sinking Funds 6. Bond Redemption 7 Investments in bonds 8. Corporation Balance Sheet 9. Financial Analysis and Interpretation

Definitions Conjugated double bonds are separated by one single bond. Example: 1, 3-pentadiene. Isolated double bonds are separated by two or more single bonds. 1, 4-pentadiene. Cumulated double bonds are on adjacent carbons. Example: 1, 2-pentadiene

Groups bonded by only a sigma bond can undergo rotation about that bond with respect to each other. The temporary molecular shapes that result from rotation of groups about single bonds are called conformations of a molecule. each possible structure is called a conformer. An analysis of the ener changes associated with a molecule undergoing rotation about single bonds is called conformational analysis

Characteristics of Bonds o Bonds pay fixed coupon ( interest) payments at fixed intervals(usually every 6 months)and pay the par value at maturity

Carbon’s ability to form strong covalent bonds to other carbon atoms is the single property of the carbon atom that — more than any other—accounts for the existence of a field of study called organic chemistry. Carbon’s ability to form as many as four strong bonds to other carbon atoms, and to form strong bonds to hydrogen, oxygen, sulfur, and nitrogen atoms as well

A hydrocarbon whose molecules contain two double bonds is called an alkadiene(alkatriene for three double bonds); A hydrocarbon with two triple bonds is called an alkadiyne; A hydrocarbon with a double and triple bond is called an alkenyne

 8.1 Using Present Value Formulas to Value Known Flows  8.2 The Basic Building Blocks: Pure Discount Bonds  8.3 Coupon Bonds, Current Yield, and Yield-to-Maturity  8.4 Reading Bond Listings  8.5 Why Yields for the same Maturity Differ  8.6 The Behavior of Bond Prices Over Time

Bond Principles: Identification- of Bonds Bonds are identified by issuer, coupon rate, and maturity. The face value of a bond is called its par value. e.g. 5 of \Hertz sevens of 03\(Hertz 7s03) .A legal document called the indenture contains the details of the bond issue

Using Present Value Formulas to value Known Flows The Basic Building Blocks: Pure Discount Bonds Coupon Bonds, Current Yield, and Yield-To-Maturity Reading Bond Listings Why Yields for the Same Maturity Differ The Behavior of Bond Prices over Time

he Greek word stereos means\solid, \and stereochemistry refers to chemistry in three dimensions. The foundations of organic stereochemistry were laid by Jacobus van't Hoff* and Joseph Achille Le Bel in 1874. Independently of each other, van't Hoff and Le Bel proposed that the four bonds to carbon were directed toward the cor- ners of a tetrahedron. One consequence of a tetrahedral arrangement of bonds to carbon