Dollar Duration 2011 CFAI AM Q6A

CFA Level III Fixed Income
#1

Hello - In reviewing the 2011 CFAI AM guideline answers that the Market Value of each bond is the price of the bond times 10,000. How is the Market Value of the bond calculated. Did I miss something in the question?

For example: Bond 1 Beginning of Year Dollar Duration

Bond 1 Price: 94.5 Duration: 4.9 Market Value: 945,000 DD: 46,305

I understand how to get from the Market value to the Dollar Duration. But how is the Market Value of the bond calculated starting with a price of 94.50 to arrive at 945,000

Thank you!

#2

The prices are quoted per 100 par. The notional is 1,000,000. So

94.5/100 * 1,000,000 = 945,000

#3

Thank you. That is very helpful.