GARP Financial Risk and Regulation (FRR) Series 2016-FRR Question # 49 Topic 5 Discussion

GARP Financial Risk and Regulation (FRR) Series 2016-FRR Question # 49 Topic 5 Discussion

2016-FRR Exam Topic 5 Question 49 Discussion:
Question #: 49
Topic #: 5

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


A.

The change in value of a bond when yields increase by 0.01%.


B.

The percentage change in bond price when yields change by 1 basis point.


C.

The present value of the future cash flows of a bond calculated at a yield equal to 1%.


D.

The percentage change in bond price when the yields change by 1%.


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