Point
One percent or 1%.
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Basis Point
One one-hundredth of one percent (.01%). Example: 0.04% is four Basis Points, so 5.49% is four Basis Points more than 5.45%.
See Also
Interest Rate
The rate expressed as a percentage of the principal amount of a bond used to determine the amount of interest to be paid by the issuer or the borrower.
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Term of the Week
Pre-Closing
A meeting of all the parties prior to the closing, often held the day before the closing.