A 10-year 12% Semi-annual Bond @ Market Yield of 8.520% has a price of ₹116.16 which rises to ₹117.45 at a Yield of 8.320%. What is the Basis Point Value (BPV) of the bond? (Book Value of Bond is ₹1,000.)

BPV is Change in Price (Market Value) by 1 Basis Point Change in Yield (Market). Change in Price = ₹117.45 - ₹116.16 = ₹1.29 Change in Yield = 8.520% - 8.320% = 0.20% One basis point change in Yield = 0.20% divided by 20 = 0.01% So, as we divide price change also by 20 = 1.29 / 20 = 0.0645 That 0.0645 BPV face (Book) value of ₹1,000. BPV at book value at ₹1,000 is ₹64.5 .