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NEW QUESTION: 1
A 10-year, 8% coupon bond has a duration of 4.1 and a convexity measure of 168. If this bond is currently trading at 101.25 of par, what is its price value of a basis point (PVBP)?
A. $0.415
B. $0.0415
C. $0.1325
Answer: B
Explanation:
PVBP = 0.0001 * P0 D = 0.0001 * 101.25 * 4.1 = $0.0415.


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