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Can you please show me in steps how to solve this example with formula how we get the 154.43 ? and why divided by 2?
Can you please show me in steps how to solve this example with formula
how we get the 154.43 ? and why divided by 2?
thank you
Price Value of a Basis Point Price value of a basis point. The expected or the actual money amount of the change in price of an instrument or portfolio, following a one basis point (0.01%) change in nominal annual yield PVBP Example: 10-year, 5% annual-pay bond, @par = $100,000 Value at YTM of 4.99% = 100,077.25 Value at YTM of 5.01% = 99,922.82 Difference = 154.43 PVBP = 154.43 / 2 = $77.22 80 fppt.comStep by Step Solution
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