™For a $1,000 bond, even a small change connected to basis point can affect income, market value or sensitivity to rates.
Bonds & Rates
Basis point
One hundredth of one percentage point; 100 basis points equals 1%.
Plain-English context
Why it matters
Fixed-income terms connect promised cash flows with interest-rate, credit and purchasing-power risk.
Assuming Basis point has one universal interpretation without checking the source, rules, timeframe or methodology.
Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.