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Basis pricePrice expressed in terms of yield to maturity or annual rate of return.Basis price Similar MatchesBasis pointBasis 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" Bank discount basisBank discount basisA convention used for quoting bids and offers for Treasury bills in terms of annualized yield, based on a 360-day year. Cash basisCash basisRefers to the accounting method that recognizes revenues and expenses when cash is actually received or paid out. Basis pointBasis 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. Discounted basisDiscounted basisTo sell below maturity value, so that the difference makes up all or part of the interest. Further SuggestionsbasisPrice value of a basis point (PVBP) booking the basis Cost basis Formula basis Annual basis Agency basis Accrual basis Adjusted basis Bond equivalent basis cost basis Fixed price basis sort the basis pay as you go basis After tax basis basis point Flow through basis |
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