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.
Do Not Confuse With…
Start with the Bond Basics
Term of the Week
Pre-Closing
A meeting of all the parties prior to the closing, often held the day before the closing.