basis point

Definition of "basis point"
  1. A measurement unit in finance representing one-hundredth of a percent, often used in discussing interest rates
How to use "basis point" in a sentence
  1. Interest rates on student loans have risen by twenty basis points this year.
  2. A decrease of fifteen basis points in the mortgage rate substantially reduced the monthly payment.
  3. The Federal Reserve announced a hike of five basis points in the benchmark interest rate.

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