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A bond priced at $95-16 has a modified duration of 6.5 years. (a) What is the DV 01 per $1,000,000 for the bond? (b) Suppose

A bond priced at $95-16 has a modified duration of 6.5 years.

  1. (a) What is the DV 01 per $1,000,000 for the bond?

  2. (b) Suppose you have a $75,000,000 position and yields rise 12 bps, ignoring convexity, what (2) is the estimated change in the value of the position?

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