Basis Point
One one-hundredth of one percent (.01%).
bond-basics
Point
One percent or 1%. A Bond that is discounted two Points is quoted at 98% of its Par (Principal amount) value. Because the dollar prices of municipal Bonds are quoted as a percentage of $1,000, a Point is worth $10 regardless of the actual Denomination of a particular Bond. For example, a bond discounted 2 Points, or $20, is quoted at “98” (98% of its Par Value), or $980 per $1,000.
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Hundreds of Terms and Concepts
Good Faith Deposit
The amount, if any, required to be paid to the issuer by the underwriter at the time the bonds are sold, which serves as the amount retained by the Issuer as compensation for any damages caused to the issuer by the underwriter failing to purchase the bonds at the closing.