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DURATION & RISK

DV01

Estimates the price change for a one-basis-point yield move.

Formula

DV01 ≈ Modified duration × Price × 0.0001

Variables: Modified duration; price

What it means

Estimates the price change for a one-basis-point yield move.

Example

Price 100 and modified duration 7 imply DV01 of roughly 0.07 per 100 face-value price units.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.