In this workout. We are asked to calculate the DV01 of the following position. We are told that we have a portfolio market value of 163.2 million and a par value of 150 million. And a Macaulay duration for the portfolio of 4.52 and in portfolio modified duration of 4.23. To calculate DV01 which tells us the approximate change in the portfolio value for a one basis point change in interest rates. We first of all need to use the portfolio market value. We're looking at changes in market value here. And we need to multiply this by the approximate percentage change in the portfolio value as interest rates change, which is what modified duration tells us. Modify duration though. Here is a whole number. So we need to divide it by a hundred to turn it into a percentage form. This however will give us the approximate change in the value of the portfolio for a 1% change in interest rates. That's not what the DV01 tells us. To get to the DV01, which is telling us a change in the value of the portfolio for a one basis point to change in interest rates. We need to divide this all by 100 again to give us the approximate change in the portfolio value for a one basis point change in interest rates. Or here 69,033.60.