PVBP = initial price – price if yield changed by 1 bps.
Initial price:
Price with change:
FV = 1000
PMT = 80
N = 18
I/Y = 9%
I/Y = 9.01
CPT PV = 912.44375
CPT PV = 911.6271
PVBP = 912.44375 – 911.6271 = 0.82PVBP is always the absolute value.
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