PVBP = initial price – price if yield changed by 1 bps.
Initial price:
Price with change:
FV = 1000
PMT = 50
N = 14
I/Y = 3%
I/Y = 3.005
CPT PV = 1225.92
CPT PV = 1225.28
PVBP = 1,225.92 – 1,225.28 = 0.64PVBP is always the absolute value.
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