Price Value of a Basis Point (PVBP) This measure is the absolute value of the change in price of a bond for a one basis point change in yield. It is another way to measure interest-rate risk.
http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/price-value-basis-point.asp
It turns out that Δp = USD 12.35. PVBP = Δp/ 100 = 12.35/100= 12.35 cents. Therefore, a 1 basis point increase (decrease) in interest rates will lead to a USD 12.35 decrease (increase) in the bond price. The price value of a basis point is also known as the dollar value of a basis point (DV01).
http://www.investment-and-finance.net/derivatives/p/price-value-of-basis-point.html
BPV is an estimate of the interest rate risk you have. You can therefore use it to manage interest rate exposure. Some firms do this by giving traders a maximum BPV that they are permitted to run. For example, a limit where the portfolio BPV must not exceed $20,000.
http://www.barbicanconsulting.co.uk/bpv
Typically, as this price (known for short as PVBP) increases, the dollar price volatility, also, increases. This means a bigger price value of a basis point means a bigger move in the bond’s price due to a given change in interest rates. For instance, assume a 20-year bond with 10% coupon rate and yield of 8%: that is, C = 10, N= 40, Y= 0.9.
http://www.investment-and-finance.net/derivatives/p/price-value-of-basis-point.html
We know that the Price Value of a Basis Point is the change in the value of a bond due to a 1 basis point change in the interest rates. You can use a spreadsheet to calculate the PVBP. Assume that you want to calculate the PVBP of a $1 million, 10 year bond, with a coupon of 6%. We will now calculate the PV of the bond, using r as 6% and 6.01%. The PV at 6% is 1,000,000, and the PV at 6.01% is 999,264.34.
http://financetrain.com/quick-approximation-of-price-value-of-a-basis-point-pvbp/
InvestorWords.com - Online Investing Glossary. A bond valuation calculation showing the dollar value of a one basis point decrease in interest rates. It shows the change in a bond's price compared to a decrease in the bond's yield. “ Our investment team took a look at the bond's DV01 and ran the numbers on how things might look for us if things went sour.
http://www.investorwords.com/6498/DV01.html
Price Value of a Basis Point. The amount the price of a bond changes when the required yield changes by one basis point. Various factors influence the amount of the price value of a basis point, including the time until maturity and the coupon rate. However, in general, there is an inverse relationship between the price and the required yield.
http://financial-dictionary.thefreedictionary.com/PVBP
What is basis point value, (BPV)? BPV is a method that is used to measure interest rate risk. It is sometimes referred to as a delta or DV01. It is often used to measure the interest rate risk associated with swap trading books, bond trading portfolios and money market books. It is not new. It has been used for years.
http://www.barbicanconsulting.co.uk/bpv
You can use a spreadsheet to calculate the PVBP. However, if you want a quick approximation of the same, you can use your financial calculator, or the PV formula in excel and perform the following steps: Assume that you want to calculate the PVBP of a $1 million, 10 year bond, with a coupon of 6%. N = 10. r = 6%.
http://financetrain.com/quick-approximation-of-price-value-of-a-basis-point-pvbp/
PVBP = initial price - price if yield is changed by 1 basis point. Example: Price Value of a Basis Point. Assume that the initial price is 98 and the new price is 97.75. Because of a 1 bps increase in rates the PVBP would be .25 (98 - 97.75). DV01 is related to duration. It is just a special case of dollar duration. Instead of using a 100 basis point change you are simply using a 1 basis point change.
http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/price-value-basis-point.asp
what is pvbp
The price value of a basis point is equal to initial price minus price if yield is changed by 1 basis point.