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Basic Question 4 of 5
The PVBP measure is a special case of duration because ______
II. it measures the absolute amount of price change.
III. it measures the dollar amount of price change.
I. it measures the percentage price change.
II. it measures the absolute amount of price change.
III. it measures the dollar amount of price change.
User Contributed Comments 2
| User | Comment |
|---|---|
| danlan | Since PVBP measures absolute amount of price change and duration measures relative amount of price change, I do not think it should be considered as a duration. |
| solnce | It is a so-called dollar duration. Still a duration. :) |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
define, calculate, and interpret modified duration, money duration, and the price value of a basis point (PVBP)
CFA® 2025 Level I Curriculum, Volume 4, Module 11.