partial pvbp calcuation

[125mph]

If you have a partial pvbp of 0.0056 and a keyrate curve shift of 18.3 bps on a par amount of $60,000… why do you divide 100 to get predicted portfolio impact.

predicted portfolio impact = -0.0056 x 18.3 x 60000 / 100 = -61.5

Isn’t the pvbp already per basis point, and you have 18.3 bps… so why divide by another 100?

[moxnguyen]

@125mph

If you have a partial pvbp of 0.0056 and a keyrate curve shift of 18.3 bps on a par amount of $60,000… why do you divide 100 to get predicted portfolio impact.

predicted portfolio impact = -0.0056 x 18.3 x 60000 / 100 = -61.5

Isn’t the pvbp already per basis point, and you have 18.3 bps… so why divide by another 100?

I also had the same question when i read this example in curriculum. I think that it because 0.0056 is PVBP per $100 par value