Question: Consider a 20-year, 5% annual-pay bond, with a par value equal to $100,000. When YTM drops to 4.98% value of bond increases to 100,150, whereas,

Consider a 20-year, 5% annual-pay bond, with a par value equal to $100,000. When YTM drops to 4.98% value of bond increases to 100,150, whereas, when YTM increases to 5.02% value of the bond decreases to 99,950. Calculate PVBP (price value of a basis point)

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