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Basic Question 3 of 5

The PVBP of a 10%, 20-year bond selling for 132.0326 to yield 7% would be closest to ______.

A. -1.326
B. -0.1316
C. 0.1316

User Contributed Comments 7

User Comment
AndyBear Can we get a negative PVBP?
panvino No, it is absolute value
Dragonrana How did they get 131.901086 on the calculator?
dipu617 I/Y= 7.01/2 = 3.505
N=20*2 = 40
PMT = 10/2 = 5
FV= 100
[CPT]
PV= -131.901087
johntan1979 If you don't round, $0.132179
tomalot Thanks John, any chance you give your answers to ten decimal places?
tafa I don't know if it is normal not to mention that the bond is semi-annual?would be expected in the exam to guess such thing or rather deduce it?
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Learning Outcome Statements

define, calculate, and interpret modified duration, money duration, and the price value of a basis point (PVBP)

CFA® 2025 Level I Curriculum, Volume 4, Module 11.