Seem to be confused over the difference between PV01 of a bond and DV01 of the bond.

PV01, also known as the basis point value (BPV), specifies how much the price of an instrument changes if the interest rate changes by 1 basis point (0.01%).

DV01 is the dollar value of one basis point change in the instrument.

Is my explanation correct?


They are both price changes in response to a 1 bp change.

DV01 is valid for a single bond. It is the price change in response to a 1 bp change in yield of this instrument. It arises from the mathematical relationship between yield and price.

PV01 is a more general concept for all fixed income securities , not just bonds but swaps, futures and options, MBS, and portfolios thereof. It is the price change in response to a 1 bp change in yields all along the yield curve (parallel shift in the yield curve). It presupposes an estimate of the yield curve and a mathematical relationship between the price of an instrument and this yield curve.

For a single simple bond they are the same.

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