The 'price value of a basis point' equals the change in the price of a security resulting from a one basis point change in the market yield.

Question

Quizplus · Accepted Answer

The 'price value of a basis point' (PVBP) measures the change in the price of a bond or security for a one basis point (0.01%) change in yield, reflecting the sensitivity of the security's price to interest rate changes.

The 'Price Value of a Basis Point' Equals the Change