finance Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Admin ...

, basis point value (BPV) denotes the change in the price of a bond given a

basis point A basis point (often abbreviated as bp, often pronounced as "bip" or "beep") is one hundredth of 1 percentage point. Changes of interest rates are often stated in basis points. For example, if an existing interest rate of 10 percent is increased ...

change in the yield of the bond.Martellini, Priaulet, Priaulet, Fixed-income securities. Wiley Finance, page 169 Basis point value tells us how much money the positions will gain or lose for a 0.01% per annum parallel (i.e. uniform at all durations) movement in the

yield curve In finance, the yield curve is a graph which depicts how the Yield to maturity, yields on debt instruments – such as bonds – vary as a function of their years remaining to Maturity (finance), maturity. Typically, the graph's horizontal ...

. It is specified for interest rate risk and quantifies the interest rate risk for small changes in interest rates. The basis point value of a bond is roughly proportional to its duration.

Notes

{{reflist Fixed income analysis Bond valuation