basis point

Wed, 06 May 2026 09:04:57 +0000

A basis point is the smallest measure used in quoting yields. One basis point is equal to one one-hundredth of one percentage point (0.01%). (price value of a basis pointPVBP) (dollar value of all 01DV01). In that case, the credit spread compares a riskless and a risky bond, and the spread itself can be thought of as the price of risk for a bond with that specific coupon and maturity. A credit. -