Basis Point

Explained:

basis point


   

A basis point is one one-hundredth of a percent. For example, a 150 basis point rise in interest rates is the same as a 1.5% rise. A 10 basis point fee is the same as a 0.1% fee.

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compound interest Any of several methods of crediting interest in which interest is earned on interest.

fixed income term structure Refers collectively to a spot curve, forward curve, discount curve, yield curve or any other curve that describes the time value of money at a particulate point in time.

interest rate spreads Spreads between interest rates.

return Any of a number of metrics for the change in an asset's or portfolio's accumulated value.

yield Any of several metrics of the income or return to be earned from an investment.

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