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PV01 Is a Measure

Question 3

Multiple Choice

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.

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