Why should I choose AnalystNotes?
AnalystNotes specializes in helping candidates pass. Period.
Basic Question 1 of 5
Miyoung Chen has a 5.00%, 19-year bond that is selling for a price of 34.9412 and is currently yielding 16.00%. The bond has a modified duration of 7.1481. Given this information, what is the Price Value of a Basis Point (PVBP)?
B. $0.0165
C. $0.0325
A. $0.0250
B. $0.0165
C. $0.0325
User Contributed Comments 5
| User | Comment |
|---|---|
| stefdunk | how about we just do price times duration times 0.0001? |
| derektl2 | that the way i prefer to look at it too... since duration is the price percentage change due to 100 basis points change in yield |
| Richie188 | 1% of the duration x price / 100 |
| johntan1979 | Not that it matters but you should be getting a non-rounded answer of $0.024976 |
| tomalot | Yeah it doesn't matter dude |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
define, calculate, and interpret modified duration, money duration, and the price value of a basis point (PVBP)
CFA® 2024 Level I Curriculum, Volume 4, Module 11.