basis point -- One-hundredth of a percentage point. (For example,
the difference between interest rates of 10.5 percent and 10.0 percent
is 50 basis points.)
basis point -- one basis point equals 1/1OOth of one percent, or .0001. For example, 50 basis points is equal to 1/2 percent. Basis points are frequently used to describe spreads or changes in yields of interest rates.
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