The formula for EC and ED use BVo…I had been thinking that is the price before the change in yields. However, I did EOC question #30 for reading 50, and they used the face value of the bond in the equation ($1,000). Do we always use the face value of the bond for BVo, or did we do that in this question because the bond happened to be an 8% bond and the rates changed 100 basis points up and down from 8%. Sorry if this question is confusing. Thanks!
BV0 is always the PAR value of Bond.
Easy enough, thanks!