Answer: 0.0642.

The correct answer is **A**. The price value of a basis point (PVBP) estimates the change in the full price of a bond for a 1 basis point (bp) change in yield-to-maturity. It is calculated as: \[ PVBP = -\text{Modified Duration} \times 0.0001 \times \text{Full Price} \] Substituting the given values: \[ PVBP = -6.2 \times 0.0001 \times 103.50 = 0.06417 \approx 0.0642 \] - **Option B** is incorrect because it represents a 10 bp change in yield (\[ -6.2 \times 0.001 \times 103.50 = 0.642 \]). - **Option C** is incorrect because it represents a 100 bp (1%) change in yield (\[ -6.2 \times 0.01 \times 103.50 = 6.42 \]).

Author: LeetQuiz Editorial Team