Basis Point
A basis point is a unit of measure used in finance to describe the percentage change in value. One basis point is equal to 0.01%, making it a crucial tool for expressing interest rate changes, bond yields, and other financial metrics accurately.
Key Takeaways
- Basis points are commonly used to express changes in interest rates.
- One basis point equals 0.01%.
- They provide precision in financial discussions.
- Basis points help in comparing percentage changes in financial instruments.
