Price Value of a Basis Point

Price Value of a Basis Point

Price value of a basis point (PVBP) is a sensitivity measure: how much a bond’s price changes for a one basis point change in its yield. (A basis point is one hundredth of a percent; 0.01% or 0.0001). The higher the PVPB, the more the bond’s price will be sensitive to a 1bp change in yield.

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