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**Basic Question 1 of 5**

Miyoung Chen has a 5.00%, 19-year bond that is selling for a price of 34.9412 and is currently yielding 16.00%. The bond has a modified duration of 7.1481. Given this information, what is the Price Value of a Basis Point (PVBP)?

B. $0.0165

C. $0.0325

A. $0.0250

B. $0.0165

C. $0.0325

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**User Contributed Comments**
5

User |
Comment |
---|---|

stefdunk |
how about we just do price times duration times 0.0001? |

derektl2 |
that the way i prefer to look at it too... since duration is the price percentage change due to 100 basis points change in yield |

Richie188 |
1% of the duration x price / 100 |

johntan1979 |
Not that it matters but you should be getting a non-rounded answer of $0.024976 |

tomalot |
Yeah it doesn't matter dude |

I used your notes and passed ... highly recommended!

#### Lauren

**Learning Outcome Statements**

calculate and interpret the money duration of a bond and price value of a basis point (PVBP);

*CFA® 2024 Level I Curriculum, Volume 5, Module 46.*