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 interestrate risk. It does not matter if it is an increase or decrease in rates, because such a small move in rates will be about the same in either direction according to the second property of a bond's price . This is also know as Dollar Value of an 01 (DV01).
Formula 14.18
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.
An example using the Stone & Co. bonds with duration of 5.5
5.5 x 0.0001 x 100 = .055% change
If the price was 98 the dollar price change would be:
.055% x 98 = $ 0.53
Conclusion
Congratulations! You just finished a section on one of the more complicated topics on your upcoming exam. Ensure you practice all examples presented in this section. We also recommend attempting several different practice exams on Fixed Income with Investopedia's CFA Level 1 Quizzer.
Introduction

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A Common Base for Understanding Changes in Value
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Why Bondholders Should Manage Duration Risk
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Why You Should Avoid Fixating on Bond Duration
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Immunization Inoculates Against Interest Rate Risk
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Use Duration And Convexity To Measure Bond Risk
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The Basics Of Bond Duration
Duration tells investors the length of time it will take a bond's cash flows to repay the investor the price he or she paid for the bond. A bond's duration is stated as a number of years and ... 
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What Does Duration Mean?
Duration measures a fixedincome’s sensitivity to changes in interest rates. 
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Watch Your Duration When Rates Rise
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Know Your Stock Cost Basis
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The Effect of Fed Fund Rate Hikes on Your Bond Portfolio
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