5. The "price value of a basis point" (PVBP) measures the change in the price of a bond if the yield changes by one basis point (one one-hundredth of a percent-0.01%). PVBP is expressed as the absolute value of the change in price. Consider a coupon bond with a face value of $100,000, an annual coupon rate of 10% and that matures in 5 years. What is PVBP if the yield rises from 10% to 10.01%? (Round to the nearest cent.) The PVBP if the yield rises from 10% to 10.01% is $ A newly issued U.S. Federal T-Note matures in exactly 5 years. The coupon rate is 3% per year and coupons are paid semiannually. The bond is priced at 104.79 (per $100 of face value) and yields 1.99%. The economy is slowing and many forecasters predict a recession. You expect that the monetary authorities will relax monetary policy which will cause interest rates to fall. You expect the yield on the 5-year bond to fall to 0.24%. The bond has a face value of $1M. If you want to earn $1M by investing in bonds to profit from the interest rate change, how many bonds do you buy? bonds. (Round up to In order to earn $1M by investing in bonds, you need to buy the nearest whole number.)