How do you bypass a diode

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I am replacing a selenium rectifier in a Heathkit AA-100 with a diode. Some one suggested doing it this way:

use a 1N4004, bypassed by a .01@500vdc ceramic cap (from Radio Shack).

I am not sure what bypass means or what the purpose is. Is it something like the diagram I have attached?

Thanks for the help. If anyone knows exactly how to replace the selenium rectifier in a Heathkit aa-100 I would love to know how. Thanks again.
 
Bypassing means connecting the cap in parallel with the diode. As in one lead of the cap to one side of the diode and the other lead to the other side. I can't say for sure why you would do that. Perhaps to attempt to mimic the parasitic capacitance of the selenium rectifier.
 
I'm not sure what the cap would be for either. I've replaced a number of Selenium rectifiers with diodes. The only thing to watch for is that the diode may have a lower forward resistance than the selenium unit, thus increasing the voltage in the circuit. You may want to measure the voltage after the filter, and if it's too high then stick a dropping resistor in there.

Mark
 
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