Basis point: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Align presentation of formula with qualification material) |
imported>Doug Williamson (Link with 'G+' page.) |
||
| Line 24: | Line 24: | ||
* [[Commercial paper]] | * [[Commercial paper]] | ||
* [[Constant net asset value]] | * [[Constant net asset value]] | ||
* [[G+]] | |||
* [[Pip]] | * [[Pip]] | ||
* [[Price value of a basis point]] | * [[Price value of a basis point]] | ||
Revision as of 11:20, 8 February 2016
(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.
