Financial concept benchmark is based on abbreviation. Concept: the difference between the spot price and the futures contract price of the same commodity. That is, the gap between the current price and the futures price. The base point is the center, and a base point is defined as "0.001"(0.01%) or "one percent", which can be used in arithmetic notation. It is widely used to calculate interest rates, exchange rates and stock prices, because these fields need to involve the calculation of tiny percentages.
Base point in CAD: Determine the base point according to the actual situation. For example, rotation will have a central point, and this central point is the base point.
Base point in the network: based on a PC or a site, the center radiating to the surrounding or peripheral network is called the base point.
Calculation method of interest rate basis point:
1. If your original interest rate rises by 20%, then the actual interest rate is 5.88%, the basis point value is 5.88%-4.8%= 108, and your basis point is 108.
2. When LPR changes, your LPR interest rate will also change. For example, when the LPR is currently 4.75%, your interest rate will become 4.75% 108=5.83%.
3. If your previous interest rate was declining, that is, discounting, then your basic number is negative, such as declining 10%, and your actual interest rate is 4.4 1%, then the basic number now is 4.4 1%-4.8%=-39.
4. If the LPR value changes, your LPR interest rate will also change, for example, to 4.75%, and your LPR interest rate will become 4.75%-39=4.36%.
The price value of one basis point (PVBP) is a widely used index to measure the price elasticity of bonds, also known as dollar value 0 1 (DV0 1). The meaning of the term is the change value of the bond price relative to the initial price, if the market requires the yield to fluctuate 1 basis point. Because the value of a base point is very small, whether the change of 1 base point is upward or downward is ignored in the definition.