Final answer:
The dollar value of an 01 for a bond represents the change in the bond's price for a 1 basis point change in its yield.
Step-by-step explanation:
The dollar value of an 01 for a bond represents the change in the bond's price for a 1 basis point (0.01%) change in its yield. To calculate the dollar value of an 01, you can use the following formula:
Dollar Value of an 01 = (Coupon / Yield) x 0.0001 x Face Value
Using the given information for the bond with a coupon of 5.8%, eleven years to maturity, and a current price of $1,059.80, we need the bond's yield to calculate the dollar value of an 01.