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Basic Question 4 of 5
The PVBP measure is a special case of duration because ______
II. it measures the absolute amount of price change.
III. it measures the dollar amount of price change.
I. it measures the percentage price change.
II. it measures the absolute amount of price change.
III. it measures the dollar amount of price change.
User Contributed Comments 2
| User | Comment |
|---|---|
| danlan | Since PVBP measures absolute amount of price change and duration measures relative amount of price change, I do not think it should be considered as a duration. |
| solnce | It is a so-called dollar duration. Still a duration. :) |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
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.