# Basis Point

**Definition:** Basis point is a way of expressing variations in bond yields. One basis point is 0.01 percentage point.
**Definition:** [crh] In the bond market, the smallest measure used for quoting yields is a basis point. Each percentage point of yield in bonds equals 100 basis points. Basis points also are used for interest rates. An interest rate o**Definition:** f 5% is 50 basis points higher than an interest rate of 4.5%. Sometimes referred to as BPS, BIPS, and pronounced "Bips"

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