Why use Cash flow PV01 and Not Cash Flow Present Value

Discussion on Value-at-Risk Models
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willkt
Posts: 1
Joined: Fri Aug 29, 2014 11:28 am

Why use Cash flow PV01 and Not Cash Flow Present Value

Postby willkt » Fri Aug 29, 2014 12:39 pm

Why is Cashflow PV01 instead of Cash flow Present Value is used in calculating VaR of an interest rate instrument?

Riskmetrics and Jorion use Cash Flow Present Value instead.

Please help as I am confused.

Thanks

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