Percentage point: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Expand for example and link.)
 
imported>Doug Williamson
(Classify page.)
 
(2 intermediate revisions by the same user not shown)
Line 1: Line 1:
(bp).  
(pp).


A percentage point is 1%, or 100 basis points.


1.  
An increase of 3%, say from 2% to 5%, is an increase of three percentage points, or 300 basis points.


''Interest rates''.


One hundredth of 1%
== See also ==
* [[Basis point]]
* [[Percentage]]


= 0.01%
[[Category:The_business_context]]
 
[[Category:Cash_management]]
= 0.0001 as a decimal.
[[Category:Financial_products_and_markets]]
 
[[Category:Liquidity_management]]
 
For example, an increase of three basis points (0.03%) from a starting rate of 2%, would give an increased rate of 2.03%.
 
 
One hundred basis points are 1%.
 
An increase of 3%, say from 2% to 5%, is an increase of 300 basis points.
 
 
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.
 
 
== See also ==
* [[Commercial paper]]
* [[Constant net asset value]]
* [[G+]]
* [[Percentage point]]
* [[Pip]]
* [[Price value of a basis point]]

Latest revision as of 12:36, 24 December 2019

(pp).

A percentage point is 1%, or 100 basis points.

An increase of 3%, say from 2% to 5%, is an increase of three percentage points, or 300 basis points.


See also