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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Basis Point


One hundredth of one percent. That is, if mortgage rates are quoted today at 6.274% and then next week are quoted at 6.284%, they have gone up one basis point. If they moved two weeks later to 6.074%, they have gone down 20 basis points from the original quote.