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Basis point |
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Basis pointIn 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 higher than an interest rate of 4.5%. Sometimes referred to as BPS, BIPS, and pronounced "Bips"Basis pointA basis point is one one-hundredth of one percentage point. For example, the difference between a loan at 8.25 percent and a mortgage at 8.37 percent is 12 basis points.Basis pointUsually one hundredth of a percentage point used in quoting movements in interest rates of yields on securities.Similar MatchesSort the basisSort the basisA person or firm who has sold or is short the spot commodity and who has hedged with a purchase of futures. Fixed price basisFixed price basisAn offering of securities at a fixed price. Cash basisCash basisRefers to the accounting method that recognizes revenues and expenses when cash is actually received or paid out. Flow through basisFlow through basisAn account for an investment credit to show all income statement benefits of the credit in the year of acquisition, rather than spreading them over the life of the asset. Price value of a basis point (PVBP)Price value of a basis point (PVBP)Also called the dollar value of a basis point; a measure of the change in the price of a bond if the required yield changes by one basis point. Further Suggestionscost basisAgency basis After tax basis pay as you go basis Accrual basis basis Formula basis Annual basis Bond equivalent basis Cost basis Bank discount basis Discounted basis booking the basis Adjusted basis Basis price |
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