Basis point and Callable bond: Difference between pages

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imported>Doug Williamson
(Align presentation of formula with qualification material)
 
imported>Doug Williamson
(Link with Call provision page.)
 
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(bp).  
A bond with a call provision giving the issuer (borrower) the right to redeem the bonds under specified terms prior to the normal maturity date.


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.


== See also ==
* [[101 call protection]]
* [[Bond]]
* [[Call]]
* [[Call provision]]
* [[Call risk]]
* [[Callable]]
* [[Maturity]]


3. ''Foreign exchange rates.''
[[Category:Long_term_funding]]
 
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.
 
 
== See also ==
* [[Commercial paper]]
* [[Constant net asset value]]
* [[Pip]]
* [[Price value of a basis point]]

Revision as of 09:05, 6 January 2018

A bond with a call provision giving the issuer (borrower) the right to redeem the bonds under specified terms prior to the normal maturity date.


See also