What is 'Price Value of a Basis Point  PVBP'
Price value of a basis point (PVBP) is 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).
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BREAKING DOWN 'Price Value of a Basis Point  PVBP'
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.
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Why are bond yields calculated in terms of basis points?
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What is a basis point (BPS)?
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What causes a bond's price to rise?
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