Basis point: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson m (Spacing) |
||
| Line 1: | Line 1: | ||
(bp). | (bp). | ||
1. ''Interest rates''. | 1. ''Interest rates''. | ||
One hundredth of 1% = 0.01% = 0.0001 as a decimal. | One hundredth of 1% = 0.01% = 0.0001 as a decimal. | ||
| Line 15: | Line 16: | ||
* [[Pip]] | * [[Pip]] | ||
* [[Price value of a basis point]] | * [[Price value of a basis point]] | ||
Revision as of 19:00, 1 August 2013
(bp).
1. Interest rates. One hundredth of 1% = 0.01% = 0.0001 as a decimal.
2. While bond coupons may be expressed in fractions (for example, quarters, eighths or sixteenths), yields and prices of most money market instruments, such as commercial paper or treasury bills, are quoted in basis points.
3. Foreign exchange rates. One hundredth of a cent, for example $0.0001, or its equivalent in other currencies. Often, but not always, this represents a minimum price movement in the related foreign exchange rate quotation.
