PVBP by the modified duration formula

Tags: bonds pricing and analysis

Description of the PVBP by the modified duration formula

Formula for the calculation of a bond's PVBP by it's modified duration.

Formula

P V B P = \frac{P_{g} \cdot D_{m o d}}{10000}

Symbols

D_{m o d}

Modified duration

P_{g}

Dirty price

Additional information related to this formula

Related definitions from the glossary of financial terms

Bond • Dirty price • • Price value of a basis point

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How to Calculate the Price of a Coupon Bond: A Comprehensive Guide • Measuring Interest Rate Risk and Credit Risk for Bonds: Exploring Duration, Convexity, and PVBP

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