DV01
The change in the value of a bond or a portfolio, in money, for a one basis point shift in yield.
Formula
DV01 = \frac{D_{mod}\cdot P}{10\,000}Modified duration multiplied by the full value of the position; the divisor converts per cent into basis points.
How to read the number
It converts abstract duration into currency: it shows what the position actually risks rather than what coefficient it carries.
When the metric lies
The measure is linear while the price-yield relationship is not. On large shifts the estimate drifts from reality, and the longer the bond the further it drifts.
Also known as: pv01, price value of a basis point