straight bond

Examples of straight bond in the following topics:

• Call Provisions

  • A callable bond (also called redeemable bond) is a type of bond that allows the issuer of the bond to retain the privilege of redeeming the bond at some point before the bond reaches its date of maturity.
  • With a callable bond, investors have the benefit of a higher coupon than they would have had with a straight, non-callable bond.
  • Price of callable bond = Price of straight bond – Price of call option
  • Price of a callable bond is always lower than the price of a straight bond because the call option adds value to an issuer.
  • Similarly, yield on a callable bond is higher than the yield on a straight bond.

• Other Features

  • Other important features of bonds include the yield, market price and putability of a bond.
  • Bondholders are ready to pay for such protection by accepting a lower yield relative to that of a straight bond.
  • Price of puttable bond = Price of straight bond + Price of put option
  • Price of a puttable bond is always higher than the price of a straight bond because the put option adds value to an investor.
  • Yield on a puttable bond is lower than the yield on a straight bond.

• Time to Maturity

  • The issuer of a bond has to repay the nominal amount for that bond on the maturity date.
  • Most bonds have a term of up to 30 years.
  • The fair price of a "straight bond," a bond with no embedded options, is usually determined by discounting its expected cash flows at the appropriate discount rate.
  • Where the market price of a bond is less than its face value (par value), the bond is selling at a discount.
  • Conversely, if the market price of bond is greater than its face value, the bond is selling at a premium.

• The Shape of Molecules

  • This shape is dependent on the preferred spatial orientation of covalent bonds to atoms having two or more bonding partners.
  • As defined in the diagram on the right, a simple straight line represents a bond lying approximately in the surface plane.
  • A wedge shaped bond is directed in front of this plane (thick end toward the viewer), as shown by the bond to substituent B; and a hatched bond is directed in back of the plane (away from the viewer), as shown by the bond to substituent D.
  • Some texts and other sources may use a dashed bond in the same manner as we have defined the hatched bond, but this can be confusing because the dashed bond is often used to represent a partial bond (i.e. a covalent bond that is partially formed or partially broken).
  • In the linear configuration (bond angle 180º) the bond dipoles cancel, and the molecular dipole is zero.

• Molecular Geometries

  • In a linear model, atoms are connected in a straight line, and a bond angle is simply the geometric angle between two adjacent bonds.
  • A simple triatomic molecule of the type AX2 has its two bonding orbitals 180° apart.
  • When writing out the electron dot formula for carbon dioxide, notice that the C-O bonds are double bonds; this makes no difference to VSEPR theory.
  • In accordance with the VSEPR theory, the bond angles between the electron bonds are 109.5o.
  • Although the central atom (carbon) has four bonds, only two are sigma bonds; it is therefore is represented as AX2E0 in the table.

• Membrane Fluidity

  • In their saturated form, the fatty acids in phospholipid tails are saturated with bound hydrogen atoms; there are no double bonds between adjacent carbon atoms.
  • This results in tails that are relatively straight.
  • In contrast, unsaturated fatty acids do not contain a maximal number of hydrogen atoms, although they do contain some double bonds between adjacent carbon atoms; a double bond results in a bend of approximately 30 degrees in the string of carbons.
  • Thus, if saturated fatty acids, with their straight tails, are compressed by decreasing temperatures, they press in on each other, making a dense and fairly rigid membrane.

• Formal Charge and Lewis Structure

  • Covalent bonds in a molecule and the overall charge of a molecule can be visualized with Lewis dot structures.
  • A bond that shares two electrons is called a single bond and is signified by a straight, horizontal line.
  • In the Lewis structure, carbon should be double-bonded to both oxygen atoms.
  • In this formula, V represents the number of valence electrons of the atom in isolation, N is the number of non-bonding valence electrons, and B is the total number of electrons in covalent bonds with other atoms in the molecule.
  • FC = 6 valence electrons - (4 non-bonding valence electrons + 4/2 electrons in covalent bonds)

• The Phase of Orbitals

  • A bond involving molecular orbitals that are symmetric with respect to rotation around the bond axis is called a sigma bond (σ-bond).
  • If the phase changes, the bond becomes a pi bond (π-bond).
  • Symmetry labels are further defined by whether the orbital maintains its original character after an inversion about its center; if it does, it is defined gerade (g), German for "straight."
  • This makes the π-bond a weaker bond than the original σ-bond that connects two neighboring atoms; however the fact that its strength is added to the underlying σ-bond bond makes for a stronger overall linkage.
  • Although the π-bond is not as strong as the original σ-bond, its strength is added to the existing single bond.

• Drawing Hydrocarbon Structures

  • To continue, draw a short, straight line.
  • Now the hydrocarbon represented by the short, straight line is two carbon atoms in length; it has two ends.
  • To increase the number of carbon atoms in your drawn structure, change direction and continue with a short, straight line.
  • When including an alkene bond in your hydrocarbon structure, aim for 120 degree bond angles about each doubly-bonded carbon.
  • In the case of alkyne bonds, simply draw the triple bond in-line with the carbon atoms immediately bound to the alkyne carbons.

• Limited-Life Impairment

  • Limited-life intangibles are amortized throughout the useful life of the intangible asset using either the units of activity or the straight-line method.
  • Intangible assets with a limited-life are amortized on a straight-line basis over their economic or legal life, based on whichever is shorter.
  • Limited-life intangibles are systemically amortized throughout the useful life of the intangible asset using either units of activity method or straight-line method.
  • A bond's discount amount must be amortized over the term of the bond.