Price Value of a Basis Point - PVBP
- Price Value of a Basis Point - PVBP
- A measure used to describe how a basis point change in yield affects the price of a bond.
Also knows as the "value of a basis point" (VBP) or "basis point value" (BPV).
There is an inverse relationship between bond price and yield. As bond prices decrease, their yields increase and vice versa. The degree of change in bond price for each basis point change in yield is determined by a number of other factors, such as the bond's coupon rate, time to maturity and credit rating.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Price value of a basis point (PVBP) — Also called the dollar value of a basis point, a measure of the change in the price of the bond if the required yield changes by one basis point. The New York Times Financial Glossary … Financial and business terms
price value of a basis point — ( PVBP) Also called the dollar value of a basis point; a measure of the change in the price of a bond if the required yield changes by one basis point. Bloomberg Financial Dictionary … Financial and business terms
PVBP — Price Value of a Basis Point (Business » Stock Exchange) … Abbreviations dictionary
PVBP — See: price value of a basis point … Financial and business terms
