MLARM Practice Questions - PRMIA Market, Liquidity & ALM Risk Certificate Exam

PV01 measures the change in present value for a 1 basis point parallel shift in the yield curve, while DV01 is the dollar value of a 1 basis point change — in practice the two terms are used interchangeably PV01 is the price for a 1% move; DV01 is the price for a 1bp move PV01 is used only for equities; DV01 is used only for bonds PV01 is forward-looking; DV01 is backward-looking