PV01 is a measure:
A) of how much a bond's price will decrease in response to a one-basis-point decline in a bond's duration.
B) that determines how secure an investor should feel about a perfectly hedged portfolio.
C) of the rate of change of price with respect to yield or the percentage change in price for a parallel shift in yields.
D) of how much a bond's price will increase in response to a one-basis-point decline in a bond's yield to maturity.
Correct Answer:
Verified
Q1: 'The duration of a portfolio of bonds
Q2: The current yield to maturity is 7%
Q4: Which of the following is true of
Q5: _ is a technique for locking in
Q6: What is duration?
Q7: Which of the following is the
Q8: _ is defined as the sensitivity of
Q9: _ sets a target value for the
Q10: Which of the following is true of
Q11: A bond position has a PV01 of
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