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Basis Point (bp)
1 bp = 0.01% (100 bps = 1%)
Definition
A basis point is a unit of measurement equal to 1/100th of 1% (0.01%). It's commonly used to express small changes in interest rates, yields, and spreads. For example, a 25 basis point increase in interest rates means rates rose by 0.25%.
Related Topics
#measurement
#percentage
#interest rates
#yields
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