Also referred to as beeps, points, or BPS, basis points are values that equate to one-hundredth of one percentage point or .01. They represent the smallest unit of measurement used for interest rates and other financial instruments.
Basis Points (BP’s)
Also referred to as beeps, points, or BPS, basis points are values that equate to one-hundredth of one percentage point or .01. They represent the smallest unit of measurement used for interest rates and other financial instruments.