An amount equal to 1/100th of a percentage point. For example, a fee calculated as 50 basis points of $200,000 would be 0.50% or $1000.

A convenient measure of a security price or yield; one hundredth of one percent (.01%).

One hundredth of a percent (0.01%). Used to measure changes in or differences between yields or interest rates. see also point.

Equals to 1/100th of 1%.

One hundredth of one percentage point. A change from 5.25% to 5.75% is said to be a 50 basis point move. See 'Point' for currency moves.

One hundredth of one percent, or 0.0001.

The smallest measure used in quoting yields on fixed income securities. One basis point equals one percent of one percent, or 0.01%.

A unit equal to 1/100 of 1% (0.01%) used in expressing variations in the yields of bonds. For example, the difference between 12.83% and 12.88% is 5 basis points.

Basic point. One percent of the interest; it is used regarding interest rates

One one-hundredth of one percent. Used to describe the amount of change in yield in money debt instruments, including mortgages.

One basis point is 0.01 percent of a bond's yield. Basis points also are used for interest rates. An interest rate of 4 percent is 50 basis points greater than an interest rate of 3.5 percent.

01 percent. Used to measure changes in yields of bonds.

One basis point equals 1/100th of a percent.

A change in the interest rate of 1/100 of 1%. Therefore, one basis point (1 bp) is equivalent to 0.01%.

A one one- hundredth of one percent (i.e., 0.01%), used to express interest rates and bond yield differentials. The smallest measure used in quoting yields on bonds and notes.

Interest rate movements are often expressed in basis points, which are equivalent to one-hundredth of a per cent. So 25 basis points equals 0.25%.

100 basis points are equal to 1 percentage point in bond trading; 1 point is equal to 0.01

One one-hundredth of one percent, i.e., 100 basis points = 1 percent.

Smallest measure used in quoting yields on bonds and notes and equal to .01. Thus, 100 basis points equal 1%.

A measurement of change equal to one hundredth of one per cent.

A basis point is 1/100th of 1%. For example the difference between a loan at 8.00% and a mortgage at 9.11% is 11 basis points.

One-hundredth (.01) of a full Index point, worth $5.

A yield of 1/100th of a percentage point.

One-one hundredth (1/100 or 0.01) of one percent. Yield differences among bonds are stated in basis points.

the smallest measure used for quoting interest yields.

one hundredth of a % point. The difference between 7.01 % and 7.02 % is 1 basis point.

1/100th of 1% interest. 100 basis points =1%.

One-hundredth of one percent. Normally used to describe the change in yield of a security (e.g., a yield increase from 7.13% to 7.14% would be a two basis point increase).

Smallest measure used in quoting yields on bonds and notes. One basis point is 0.01% of yield. For example, a bond's yield that changed from 5.50% to 5.90% would be said to have moved 40 basis points. [Back

It is a quantitative measure used for cash and debt instruments whereby 100 basis points equates to one percent (1%).

The movement of interest rates or yields expressed in hundredths of a percent; that is, a change in yield from 7.45 percent to 7.75 percent would be termed an increase of 30 basis points.

1.00% equals 100 basis points.

(BP) - An amount equaling 1/100th of one percent; used especially in expressing variations in the yields of bonds. For example, the difference between 12.83% and 12.88% is 5 basis points.

Usually used in describing interest rate movements or interest costs. One basis point is 1/100 of 1%. For example, 50 basis points is 0.5%.

In an investment, this is the one-hundredth of 1 percent.

Basic item. The 100-th share of percent; it is used concerning interest rates.

One hundredth of one per cent (0.01%) of yield.

1/100 of one percent. Used in quoting yield movements in certain interest rate instruments and futures contracts based on them.

One hundredth of one percent (.01% or .0001).

A unit of measure amounting to one-hundredth of one percent.

A basis point is 1/100th of a percentage point. For example, for a loan of $100,000 a fee calculated as 50 basis points would be 0.50% or $500.

One hundredth of 1%. A measure normally used in the statement of interest rate eg, a change from 5.75% to 5.81% is a change of 6 basis points.

A unit of measure equal to 1/100th of 1%.

A hundredth of one per cent (0.01 per cent).

A term used to measure the rate of interest. For example, ten basis points equal 0.10%.

A basis point is 1/100th of 1%. For example the difference between a loan at 9.00% and a mortgage at 9.12% is 12 basis points.

A basis point is 1/100 of a percentage point. Interest rates and bond yields are often stated in basis points. For example, if you hear that commercial banks raised their prime rate on loans by 25 basis points, it would mean they raised their prime lending by one-quarter of a percentage point.

One one-hundredth of one percent (.01%). For example, 100 basis points equals 1%.

A measurement unit defined as one hundredth of one percent.

1/100 of one percent. A 0.5% change in interest rates is referred to as a change of 50 basis points.

A measure of interest rate equal to 0.01% (or .0001). Basis Points are typically used to describe the difference between two interest rate indices or to express the changes in any one index from one point in time to another.

1% is 100 Basis Points. A Basis Point is used to express a fraction of a percent. 50 BPs is a half a percent. When working with merchants processing several hundreds of thousands of dollars on credit cards, just a few BPs can mean big annual savings in processing fees.

A measurement unit used to describe differences between yields or interest rates. For example, 25 basis points equals .25% or _ of one percent.

1/100th of 1 percent; e.g., if a security yields 150 basis points over Treasuries, and Treasuries yield 6%, the security yield is 7.5%.

A unit to describe a percentage of interest. For example, 100 basis points equals one percent interest.

A method of stating small differences in yield; 100 basis points equals 1% interest yield.

In the bond market, the smallest measure used for quoting yields; one basis point is 0.01 per cent (1/100 of 1 per cent). Basis points also are used for interest rates; an interest rate of 5 per cent is 50 basis points higher than an interest rate of 4.5 per cent.

A basis point is simply 1/100th of one percent.

One one-hundredth (1/100) of a percent. Used to describe the amount of change in the yield of financial instruments, including mortgages.

One one-hundredth of one percent. Used primarily to describe changes in yield or price of mortgages.

A unit of measurement equal to 1/100th of a percent. For example, 25 basis points = .25%.

A basis point is 0.01 of one percent. E.g: 50 basis points equals 0.50%.

One one-hundredth of a percent, or 0.01%.

Is the value of an "01" or basis point for credit instruments. Here, it refers to one-hundred of a full percentage point in yield. Sometimes, it refers to a basis point in price. It can also refer to a basis point difference in a basis time series.

One percent (1%) of interest divided by one hundred (100).

A change of 0.01% (a hundredth of a per cent) in an interest rate

One-hundredth of 1 per cent 100 basis points = 1 per cent so 10 basis points = 0.1 per cent. A bond yield that shifts from 6.10 per cent to 6.15 percent has risen 5 basis points.

One hundredth of one percent in the yield of an investment.

One hundredth (1/100th) of a percentage point. For example, the difference between 4.50% and 4.80% is 30 basis points.

Used to measure a difference or change between interest rates or yields. One hundredth of a percent point is equal to one single basis point.

one one-hundredth (1/100) of a percentage unit. For example, 50 basis points equals one half of one percent. Banks quote variable loan rates in terms of an index plus a margin and the margin is often described in basis points, such as LIBOR plus 400 basis points (or, as the experts say, "beeps").

Usually one hundredth of a percentage point (0.01 per cent), used in quoting movements in interest rates or yields on securities.

One-hundredth of a percentage point. For example, the difference between 5.25% and 5.50% is 25 basis points.

For most currencies, denotes the fourth decimal place in exchange rate and represents 1/100 of one percent (.01%). For such currencies as the Japanese Yen, a basis point is the second decimal place when quoted in currency terms or the sixth and seventh decimal places, respectively, when quoted in reciprocal terms.

Unit of measure (usually one hundredth of a percentage point) used to express movements in interest rates, foreign rates or bond yields.

Measurement of a change in the yield of a security. One basis point equals 1/100 of one percent.

A basis point is 1/100th of a percentage point. For example, a fee calculated as 50 basis points of a loan amount of $100,000 would be 0.50% or $500.

One-hundredth of one percent (0.01%). Basis points are used to measure the changes or differences between yields (such as the interest paid by CDs or other deposit accounts) or the interest rates charged by credit accounts (such as personal loans or lines of credit).

one basis point is equal to 1/100 of a percent.

An amount used for interest rates, equal to 1/100th of a percentage point. 100 basis points equal one percentage point. For example, an interest rate of 6.5% is 50 basis points lower than an interest rate of 7%.

One per cent of one per cent.

Each percentage point of the yield in bonds equals 100 basis points: one basis point is 1/100 of 1.0% (0.01%).

A unit of measurement used in the valuation of fixed-income securities equal to 1/100 of 1 percent of yield, e.g., "1/4" of 1 percent is equal to 25 basis points.

Basis point is a way of expressing variations in bond yields. One basis point is 0.01 percentage point. Basis points also are used for interest rates

Smallest measure used in quoting yelds on bills, notes and bonds. One Basis Point is 0,01%, or one-hundredth of a percent of yeld. Thus, 100 basis points equal 1%.

Smallest measure used in quoting yields on mortgages, bonds, stock, notes, etc. One basis point equals one one-hundredth of a percent of an asset’s value. For example, the difference between a yield of 6.25 percent and 6.50 percent is 25 basis points.

1/100 of 1 percent of yield.  For example, if a yield increases from 8.25% to 8.26%, the difference is referred to as a one basis point increase.  Often a basis point is referred to as “bp.

One one-hundredth of a percent. Discount rates are expressed as basis points.

Unit of measure for the change in interest rates. One basis point equates to one percent of one percent, 0.01.

A unit of measure: 1/100th of one percent. For example, the difference between a 9.0% loan and a 9.5% loan is 50 basis points.

Unit of measure (one hundredth of a percentage point, i.e. 0.01%) used to express movements in interest rates or bond yields.

Measurement used to quote bonds. One basis point is equal to 0.01%, or one one-hundredth of one percent. 100 basis points is equal to 1%, whereas 50 basis points would equal one half percent, or 0.50%.

the minimum price change in interest rates is one basis point (0.01%), for example a 6% interest rate is 50 basis points higher than a 5.5% interest rate

An incremental change in interest rate equal to one hundredth of one full percent of interest. Example: a change from 10 percent to 11 percent is an increase of 100 basis points.

One hundredth of one percentage point. A rise from 4.25% to 4.65% is said to be a move of 40 basis points. See 'Point' for currency moves.

A measure that equals one one-hundredth of one percent. For example, 30 basis points equal 0.30% or, as a decimal .0030.

A basis point is 1/100th of 1%. For example the difference between a loan at 9.00% and a credit score, originating from Gentlemen's clubs, which used to "black ball" people they did not want as members. Technically, there is no such thing as being "blacklisted", although some people clearly have better credit scores than others. Simply being declined for a credit application does not mean that someone is blacklisted, it just means that they do not meet the criteria for that particular institution at that time.

One hundredth of one percentage point. For example, the difference between a loan at 7.25 percent and a mortgage at 7.42 percent is 17 basis points.

Expression generally used to refer to differences in bond yields. One basis point is equal to .01%. Therefore, if bond X has a yield of 8.50% and bond Y's yield is 8.75%, the difference is 25 basis points.

1/100th of a point. See Point

One one-hundredth of a percentage point. This term is often used in describing changes in interest rates. For example, if the yield on a bond has changed from 7.50% to 7.87%, it has moved up 37 basis points.

One-hundredth of a percentage point. For example, 50 basis points equals 0.50%.

One one-hundredth (1/100, or .01) of 1 percent. Yield differences among fixed-income securities are stated in basis points.

A basis point is 1/100th of a percent (or 0.01%). For example, 50 basis points is 1/2 a percent or (0.5%). Usually uses to describe changes in interest rates or for fees charged. Closing costs - Costs that the borrower must pay at the time of closing, in addition to the down payment. These fees can include but are not limited to: taxes, survey, appraisal, title insurance, processing fee, underwriting fee, application fee, credit report, courier, wiring, and more.

A phrase used to describe differences in levels, for example bond yields where one basis point represents one-hundredth of a percentage point.

Just one hundredth of one percentage point or 0.01%. Basis points make for a handy way to state small differences in yield. For example, it is much easier to say one bond yields 10 basis points more than another than it is to say it yields one-tenth of one percentage point more.

A basis point is one one-hundredth of one percentage point.  For example, the difference between a home loan at 5.25 percent and one at 5.37 percent is 12 basis points.

One 100th of 1%.

A fractional interest rate measure where 100 basis points equals one per cent.

One one-hundredth of a percentage point. For example, if mortgage rates fall from 7.50% to 7.47%, then they've declined 3 basis points. A full percentage point is 100 basis points.

One one-hundredths of a percentage point. This term is often used in describing changes in interest rates. For example, if a bond yield increases from 7.50% to 7.88%, it has moved up 38 basis points.

Refers to the percentage of the value of a portfolio. Asset managers' fees are quoted in terms of basis points. One basis point equals 0.01 of a percentage point.

One percentage point of one percent. The difference between 2.00% and 2.01% is one basis point. The difference between 2.00% and 2.02% is two basis points. The difference between 2.00% and 2.50% is fifty basis points.

One one-hundredth of one per cent of yield, it is the smallest measure used in quoting yields on bonds and notes. For example, an addition of 40 basis points to a yield of 6.50 per cent would increase the yield to 6.90 per cent.

one hundredth of a percentage point. Spreads in interest rate markets are commonly quoted in basis points.

with regards to interest rates, one basis point is one-hundredth of one percentage point.

One hundredth of one percentage point is a basis point. Used mostly in relation to interest rates.

one hundredth of one percent. 25 basis points equals 1/4 of 1%.

A basis point is one hundredth of one percent, that is 0.01%.

One hundredth of a percentage point - 0.01%. !-- google_ad_client = "pub-0619425973952879"; google_alternate_color = "FFFFFF"; google_ad_width = 468; google_ad_height = 60; google_ad_format = "468x60_as"; google_ad_type = "text_image"; google_ad_channel ="0649435685"; google_color_border = "FFFFFF"; google_color_bg = "FFFFFF"; google_color_link = "A92413"; google_color_url = "000000"; google_color_text = "000000";

An increment of one-hundredth of a percent (0.01 percent); e.g., half a percent is equal to 50 bp, and one and a half percent is equal to 150 bp. Insurers often use this unit of measurement in calculating interest margins for insurance products with a significant investment component. See also interest margin.

1/100 of a percent or .01%, not 1

ne-hundredth of one percent as used to describe the amount of change in the market price of a bond or any other debt instrument.

Smallest unit for quoting yields.

A basis point is one one-hundredth of one percentage point. For example, the difference between a home loan at 4.25 percent and one at 4.38 percent is 13 basis points.

One one-hundredth of one percent. A basis point = 0.01%. Bear Market: a period during which security prices are generally falling.

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 than an interest rate of 4.5%.

A way of quoting the yield on a bond, note, or other debt instrument. One basis point is equal to 0.01%. Thus, a 50 basis point yield increase in a bond would be equal to 0.5%.

1/100th of 1 percent of yield. If a yield increases from 8.25% to 8.50%, the difference is referred to as a 25 basis point increase

Smallest measure in quoting yields on bank products such as mortgages, bonds and notes, equal to 1/100th of one percentage point. 100 basis points = 1%. Example, 50 basis points of $300,000 would be 0.50% which equates to $1,500.

(1/100%) A basis point is one one-hundredth of 1 percent.

A measurement of fluctuation of an investment, equal to 1/100 of one percent.

Unit of measure that describes yield changes of less than one per cent in debt instruments such as mortgages. One basis point is equal to one-hundredth of one percent. (For example, a rate change of one percent equals 100 basis points).

One one-hundredth of a percent (.0001).

(go to top) One basis point is a hundredth of a percentage point. The term is commonly used in currency and bond markets where large sums of money are moved. A small basis point movement can mean large profits for those involved in the transactions.

Often referred to as a 'beep', it is used to describe the differences in bond yields. One basis point is one one hundredth of a percentage point (i.e., 100bps = 1%).

A finance term meaning a yield of 1/100th of 1 percent annually. (An increase of 25 basis points means a 1/4 of 1 percent increase in an interest rate, for example.)

(Point centésimal) One hundredth of 1 per cent (0.01%).

The movement of interest rates or yields expressed in hundredths of a percent. BB, B, CCC, CC, and C, for more speculative securities, and D for securities that are in payment default.

One basis point equals 1/100 of 1%; 100 basis points equal 1%.

An interest rate or yield expressed as 1/100 of one percent.

A shorthand financial reference to one-hundredth of one percent (.01 percent) used in connection with yield and interest rates.

Yields on bonds, notes, and other fixed-income investments fluctuate regularly, typically changing only within hundredths of a percentage point. These small variations are measured in basis points, or gradations of 0.01%, or one-hundredth of a percent, with 100 basis points equaling 1%. For example, when the yield on a deposit changes from 6.72% to 6.65%, it has dropped 7 basis points.

One one-hundredth (1/100th) of a percent (0.01%).  Differences between or changes in interest rates and yields are expressed in basis points.  Investments yielding 5.5% pay 0.5%, or 50 basis points, more than investments yielding 5.0%.

A 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.

in the context of discussions on interest rates, one basis point equals one-hundredth of one percentage point.

1/100 of a percentage point (1%), also expressed as 0.01 percent. Used as an expression of margin (spread) over an index rate; for example, 245 BP over the 10-Year Treasury is 2.45% over the 10-Year Treasury.

Often called a 'beep', it is used to describe the differences in bond yields. One basis point is one one hundredth of a percentage point i.e. 100 basis points = 1%.

One gradation on a 100-point scale representing one percent; used especially in expressing variations in the yields of bonds. Fixed income yields vary often and slightly within one percent and the basis point scale easily expresses these changes in hundredths of one percent. For example, the difference between 12.83% and 12.88% is 5 basis points.

equal to one-hundredth of a percentage point. For example, if a bond's interest rate increases from 8.40 percent to 8.42 percent, then the bond interest rate has increased by two basis points (8.42% minus 8.40% equals 0.200%).

Most often used relating to changes in interest rates. One basis point is 1/100 of a percentage point.

A measure used to quantify yields or interest rates. One basis point (or bp) equals one hundredth of a percent (0.01%).

The smallest measure used in quoting yields and interest rates. One basis point equals .01%, so a 100 basis point move in a U.S. Treasury bond yield is 1%.

is equal to 100th of a percentage point, e.g. 0.5% is equal to 50bp.

One hundredth of one percent. Used primarily to describe changes in yield or price on debt instruments, including mortgages and mortgage-backed securities.

1/100th of 1%. A measure normally used in the statement of interest rates; e.g. a change from 5.75% to 5.81% is a change of six basis points. First used in the USA, now common elsewhere.One one-hundredth of a percent. Thus, if a bond's yield drops from 6.56 percent to 6.51 percent, it is said to have fallen by 5 basis points.

0.01 percent of the yield of a mortgage, bond or note. The smallest measure used.

Refers to one hundredth (0.01) of a full percentage point in yield. Example: An interest rate of 5 percent is 500 basis points. 4.50% is 50 basis points less than 5.00%.

Measure used to define the variations in return, prices, market prices, etc. One basis point or bp equals one hundredth of a percent (0.01%).

Equivalent to .01 percent, or one hundredth of one percent, and is used as a measurement of fee rates. Rate changes are often expressed in basis points instead of hundredth percents, e.g., a fee rate increase of 1.95 percent to 2.0 percent is expressed as an increase of 5 basis points.

when measuring the change in interest rates for bonds and notes, equal to 1/100 of a percentage point (0.01%)

A hundredth of a percentage point. For example, the difference between interest rates of 10.5 percent and 10.0 percent is 50 basis points.

One one-hundredth of a percentage point. Example: A decline from 7.15% to 7.10% is a decline of five basis points.

One one-hundredth of a percent. Used when discussing changes or differences in interest rates. For example, a bond yielding 6.32% is said to yield 32 basis points more than a bond yielding 6.00%.

One one-hundredth of a percentage point. If you see a loan has changed from 7 percent to 7.10 percent, it has gone up 10 basis points.

One hundredth of a percentage point. E.g. 2bp = 0.02

Smallest measure used in quoting yields. One basis point is 0.01% or one one-hundredth of a percent. For example, 100 basis points equal 1%.

( point de base). One one-hundredth of a percentage point. If the bank rate decreased from 5.45% to 5.35%, it went down 10 basis points.

Basis points are the increments by which discount rates are calculated. 1 basis point is equivalent to .01% or .0001.

The smallest measure used in quoting yields or returns. One basis point is 0.01% of yield, 100 basis points equals 1%. A yield that changed from 8.75% to 9.50% increased by 75 basis points.

A shorthand reference to 1/100 of 1 percent (.01%) of yield.

One one-hundredth of one percentage point, or 0.01%.

One hundredth of a percent, usually in reference to interest rates and the yield on bonds.

One one-hundreth of a percent of a percent of yield (.01%). A unit of measure used in quoting yields on bills, notes and bonds

One one-hundredth of a percentage point. For example a Treasury Bill yielding 7.17% changes in price so that it now yields 7.10%; it is said to have declined seven basis points.

1/100th of 1%. A term used mostly by bond people who figure in the mortgage business because so many loans are securitized. If you look in your paper and see that the yield on the 30 year bond fell from 7.87% to 7.82%, it fell 5 basis points. Mortgage rates dropped a little bit too but not enough for most people to notice to notice. A % drop would be equal to 25 basis points.

One one-hundredth of one percent. Used to describe changes in yield on alternative debt instruments including mortgages.

One hundredth of a percentage point (100 basis points equals 1 percent). Used to measure small differences or changes, e.g. bond yields or interest rates which tend to fluctuate often within 1 percent.

Divide a penny into 100 pieces and 1 basis point would equal to 1 piece of those 100 pieces. Discount rates for merchants are assigned as basis points.

See on: Wikipedia Investopedia A unit that is equal to 1/100th of 1%, and is used in denoting the change in a financial instrument. The basis point is commonly used for calculating changes in yield of a fixed-income security, interest rates and equity indexes.

Most widely used in the description of interest rate moves. One basis point is one hundredth of a percentage point. A 50 basis point rise is therefore a rise of half of one per cent.

1/100th of 1%. For example, 71/2 basis points equals . 00075%.

Is 0.01% or one-hundredth of a percent (50bp is '/2% or 0.50%) See 'British Bankers' Association'

One hundredth of one percent, ie there are one hundred bp per 1%. Example 25bp = 0.25%.

a measure that equals one one-hundredth of one percent. For example, 30 basis points are equal to 0.30%.

A financial term meaning one one-hundredth of a percent. For example: On December 13, 2005, the Federal Reserve increased interest rates from 4.00% to 4.25%. That was an increase of 25 basis points.

Basis point is used to describe one one-hundredth (1/100) of a percent. For example one hundred (100) basis points is equivalent to one percent (1%).

One one-hundredth of one percent. For example, 40 basis points equal 0.40%.

A measurement of yield fluctuations of an investment (bill/bond). Each 1/100 of a percent equals one point (eg. 25 basis points equals 1/4 of 1%).

Units of 1%, with each unit being 0.01% (1/100th per cent). For example, ""50 basis points"" is one-half of one per cent.

A basis point is the smallest measure for quoting yields in the bond market. Each percentage point of yield in a bond equals 100 basis points. Thus, 50 basis points are equal to .50%.

One-hundredth of a percentage. The difference between 8.04 percent and 8.05 percent is one basis point.

The measurement of fluctuation in the value of an investment, equal to 1/100th of one per cent.

A phrase used to describe differences in bond yields, with one basis point representing one-hundredth of a percentage point. Thus if Bond X yields 8.5 per cent and Bond Y 8.75 per cent, the difference is 25 basis points. Same phrase is used when describing rise and falls of the dollar.

a unit of measure for the change in interest rates that is equal to .01 percent (for example: 100 basis points equal 1%)

One hundredth of a percent (0.01%). Used to measur... Add a comment

A phrase used to describe differences in bond yields, with one basis point representing one-hundredth of a percentage point. Thus, if bond X yields 11.50% and bond Y yields 11.75%, the difference is 25 basis points.

1/100th of a percentage point, or 0.01%. For example, 20 basis points equals 0.20%.

One one-hundredth of a percentage point. The difference between 7.04 percent and 7.05 percent is one basis point.

One one-hundredth of a percentage point as it relates to interest or the value of stocks, bonds or other financial products. Agent commissions, such as those related to a mortgage broker or investment advisor are often based on basis points for the face amount of the mortgage or financial instrument.

A basis point is 1/100 of 1

One basis point equals 1/100 of 1% in interest. Basis points are used by Lenders to measure interest rates in yield calculations. back

One-hundredth of one percentage point, or 0.01 per cent. Therefore 1.0 per cent equals 100 basis points. Basis points are an easy way to state small differences in yield. For example, a return of 6.0 per cent is 50 basis points greater than a return of 5.5 per cent.

The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security. The type of interest rate has to be specified (e.g., bond yield, zero-coupon yield, Act/360 money market rate, Act/365 money market rate, etc). The relationship between percentage changes and basis points can be summarized as follows: 1% change = 100 basis points, and 0.01% = 1 basis point.