Example 6 and EOC 11 – How do they find money duration?
For BB 6, we are given PVBP per million = 1,972 for 30 year. We are give a maximum position of 100M. From this, somehow they get money duration = 197,200. I understand they did 1,972 x 100 = 197,200. But why does money duration = PVBP per million x MV.
I thought Money Duration = Modified Duration * Market Value * 0.01
For EOC 11, we are given PVBP per million = 1,960 for long term. We are given maximum position is 150M. From this, somehow they get money duration = 294,000.
I do not understand how they get money duration for either question.