Sep 4, 2008 02:19
15 yrs ago
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English term

100 basis point (bp)

English Bus/Financial Finance (general)
The Calgary Institute Pension Fund includes a $65 million fixed-income portfolio managed by Cara Karstein, CFA, of Noble Investors. Karstein is asked by Calgary to provide an analysis of the interest rate risk of the bond portfolio. Karstein uses a binomial interest rate model to determine the effect on the portfolio of a 100 basis point (bp) increase and a 100 basis point decrease in yields. The results of her analysis are shown in the following figure.













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Responses

+5
59 mins
Selected

definition, 100 basis point (bp)


1/100 of a percentage point, also expressed as 0.01 percent.

The difference between a yield of 7.90 percent and 8 percent is 10 basis points. When applied to a price rather than a rate, the term is often expressed as annualized basis points.
Peer comment(s):

agree Will Matter : Absolutely right. I have answered a similar KudoZ question in the past.
2 hrs
Thank you, Will
agree Ioanna Daskalopoulou : Exactly!
6 hrs
Thank you, Ioanna
agree Gary D : "A basis point" is the minimum percentage ( %) point used by a bank or financial instuion for caculating intrest, Ie: The Reserv bank increased the rate by 25 basis points. this would = .25% +
8 hrs
Thank you, Gary
agree Didier Fourcot
10 hrs
Thank you, Didier
agree Arnold T.
13 hrs
Thank you, Arnold007
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4 KudoZ points awarded for this answer. Comment: "Thanks!"
15 mins

.0100 (donde .0001 sería 1 bp y por ende .0100 equivale a 100 bp)

Esto es lo que es, fuera de usar el termino del ingles, bp o basis point(s) no se de otra manera de decirlo.

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Note added at 1 day1 hr (2008-09-05 03:46:12 GMT) Post-grading
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.0100 (where .0001 equals one basis point, therefore, .0100 equals 100 basis points).
Peer comment(s):

neutral Will Matter : Ingles, por favor. ;0)
3 hrs
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Reference comments

10 hrs
Reference:

100 bp's = 1 percentage point
25 = .25%
50 = .50%
75 = .75%
100 = 1%
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