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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RELATED FAQS

Why are bond yields calculated in terms of basis points?
Find out why financial analysts and publications track and quote bond yields in basis points, or bps, rather than simply ... Read Answer >> 
What is a basis point (BPS)?
A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial ... Read Answer >> 
Should investors focus more on the current yield or face value of a bond?
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How does a bond's coupon interest rate affect its price?
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How does face value differ from the price of a bond?
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