For those who use QBank could you please refer to this question and tell if they agree with the answer given The question is really long but here is the gist of it… the give PVBP = 186.6484 What is the best estimate of the change in value of a $100,000 principal position in Treasury Notes if yields change by -10 basis points? Solution The change in value is computed as follows: Change in ValueT-Note = Price Value of a Basis Point/10 x (-Yield Change) So we have Price ChangeT-Bond = 186.6484/10 x (-10 bp) = $186.65 Why did they divide with 10? Its either im missing something, or they screwed this?? Would appreciate your help.
this question has been discussed for a very long time in one thread some time ago, and the consensus was QBank screwed up. It should have be 186.65. and not divide by 10. CP