   
|
|
|
|
|
|
| |
Yields on fixed-income securities fluctuate regularly, but may change only within hundredths of a percentage point. These small variations are measured in basis points, with the smallest unit being 1 basis point. One basis point equals 0.01%, or one-hundredth of 1%. One percent equals 100 basis points. If the yield on a bond increases from 5.10% to 5.11%, its yield has risen by 1 basis point. If a bond's yield falls from 5.50% to 5.49%, its yield has fallen by 1 basis point. A basis point is also used to measure interest rate changes. An interest rate of 4.00% is 1 basis point greater than an interest rate of 3.99%. When the US Federal Reserve holds its Federal Open Market Committee (FOMC) meetings, it announces changes in its federal funds rate target in terms of the basis point change.
Rate this basis point definition...
|
|
|
|
 |
Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day. |
|
Popular Terms: average price per share, labor relations, APR, in escrow, liquidity ratio, retained earnings, cancelled check, required rate of return, quality assurance, annual return, stock market close, VIX, ex-dividend date, FICO score, implied volatility, limit order, stock split, 1031 exchange, wholly-owned subsidiary, EBITDA, option premium, real GDP, ex-dividend, reverse mortgage, inflation, deferred tax, class C shares, dividends payable, command economy, debt service coverage, irrevocable trust, margin rate, minority interest, balance sheet, per diem, FTSE, 1035 exchange, current ratio, risk management, diluted share, 144a, phantom income, LIBOR, open position, Zero Cost Collar, 401a, covered put, deferred revenue, Key Rate Duration
|
|
| |
