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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
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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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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

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.