Magic Numbers for Bonds and Derivatives: How to Calculate the 25 Key Ratios for Investing Success

by Peter Temple

The third book in the top-selling Magic Numbers series clarifies the key concepts and formulas of finance

Magic Numbers for Bonds and Derivatives takes difficult financial concepts and breaks them down into easily understandable formulas that can be readily applied by finance professionals and individual investors. It examines key ratios and concepts for assessing bond investments from conventional to index-linked bonds, along with commonly used derivatives including futures, options, warrants, and convertibles. Ratios and concepts are described in detail, with guidelines on where to find the data needed to actually calculate them. The author includes explanations of compounding and discounting, internal rates of return, accrued interest, yield curves and spreads, duration, convexity, default rates, and more.

250 pages, Hardcover

First published January 1, 2001

About the author

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Peter Temple has been involved in the City and its Financial Markets for nearly thirty-five years as a Fund Manager, an Investment Analyst and, for the last 17 years, as a Freelance Financial Journalist. He is a regular contributor to a number of publications including the Financial Times, Investors Chronicle, and Interactive Investor, and has written more than a dozen investment books. He is a Fellow of the Securities Institute. He and his wife, who works as his researcher, live and work in a converted water mill in the English Lake District.

Reviews

[Hassan Zayour · Rating 4 out of 5]

This was a very pleasant and nice book that could be used as a reference by security analysts to understand and calculate financial ratios when valuing equities.