DV01
Definition
A bond valuation calculation showing the dollar value of a one basis point decrease in interest rates. It shows the change in a bond's price compared to a decrease in the bond's yield.
Use DV01 in a sentence
“ Our investment team took a look at the bond's DV01 and ran the numbers on how things might look for us if things went sour. ”
“ They completed the DV01 to determine the difference in the bond's yield. They ended up being ok with the results they identified. ”
“ The current DV01 report allowed the bankers to see just what the status was of their bonds so that they could appropriately market them. ”
