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# basis points

Fractions of 1 percent. One hundred basis points equals 1 percent.

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• basis point — A basis point is a unit of measure used in describing interest rates. One basis point is equivalent to 1/100th of a percent, or 0.01%. For example, if the prime rate increases by 50 basis points, it means that the rate has risen 0.5%. Category:… …   Law dictionary

• basis point — basis points N COUNT: usu pl In finance, a basis point is one hundredth of a per cent (.01%). [TECHNICAL] …   English dictionary

• basis point — A unit of measurement for interest rates or yields that is expressed as a percentage. One hundredth of one percent. One hundred basis points equal one percent. American Banker Glossary In the bond market, the smallest measure used for quoting… …   Financial and business terms

• Basis point — A basis point (often denoted as bp or unicode|‱; rarely, permyriad) is a unit that is equal to 1/100th of a percentage point. It is frequently used to express percentage point changes less than 1. It avoids the ambiguity between relative and… …   Wikipedia

• Basis point — In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate of 5% is 50 basis points greater… …   Financial and business terms

• Basis Point - BPS — A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed income security. The… …   Investment dictionary

• basis risk — The risk to a holder of financial instruments that a change in prevailing interest rates will not affect the prices of or yields on similar instruments in exactly equal amounts. For example, an increase in prevailing interest rates might raise 3… …   Financial and business terms

• Basis point —   A one one hundredth of one percent (i.e., 0.01%), used to express interest rates and bond yield differentials (7.500/o 7.15% = 0.35% or 35 basis points). It is a measure of the difference between a base rate and another rate. The points are one …   International financial encyclopaedia

• points — The units of price quoted, based on the minimum price unit. A \$1.00 price movement may be called 100 basis points. Chicago Mercantile Exchange Glossary …   Financial and business terms

• basis point — Fin one hundredth of 1%, used in relation to changes in bond interest rates. Thus a change from 7.5% to 7.4% is 10 basis points …   The ultimate business dictionary