Free ICBRR Exam Braindumps (page: 27)

Present value of a basis point (PVBP) is one of the ways to quantify the risk of a bond, and it measures:

Modified duration of a bond measures:

James Johnson bought a coupon bond yielding 4.7% for $1,000. Assuming that the price drops to $976 when yield increases to 4.71%, what is the PVBP of the bond.

Which of the following risk measures are based on the underlying assumption that interest rates across all maturities change by exactly the same amount?

I) Present value of a basis point.
II) Yield volatility.
III) Macaulay's duration.
IV) Modified duration.