A change in a bond's price caused by which one of the following is defined as the dollar value of an 01?

Question

Quizplus · Accepted Answer

A bond's price changes inversely with its yield to maturity. Yield changes are often expressed in basis points (bps), with one basis point equal to 0.01%. An 01 value represents the dollar price change of a bond for a one basis point change in yield to maturity. Therefore, the answer should be a change in yield to maturity of one basis point, which is equal to 0.01%.

A Change in a Bond's Price Caused by Which One