Basis point - Financial definition
Financial acronyms
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Concise definition of the term basis point
The unit by which interest rate margins or spreads are expressed. By convention, a basis point is worth one-hundredth of one percent or 0.01%.
Comprehensive definition of the term basis point
If an interest rate, for example, rises from 2.00% to 2.25% it is said to have increased by 25 basis points.