medium · Corporate Credit Analysis ratings

A bond investor calculates the DV01 for a $20M face position to be $8,400.

If the credit spread widens by 25 basis points, what is the estimated mark-to-market impact on the position?

  1. A loss of $8,400
  2. A gain of $210,000
  3. A loss of $210,000
  4. A gain of $525,000

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