Oct 6, 2020 · What are Basis Points (bps)? A basis point is the smallest measure used in quoting yields on fixed income products. Basis points also pertain to interest rates. One basis point is …

Nov 6, 2020 · The Macaulay duration (named after economist Frederick Macaulay) is a measure of a bond's sensitivity to interest rate changes.

Aug 21, 2020 · The credit spread would be just 10 basis points (bps); an extremely tight—almost nonexistent—credit spread. This would suggest that the risk of owning the Apple bond is …

Oct 6, 2020 · How Does Effective Duration Work? The formula for effective duration is: Effective Duration = (P- - P+ ) / [ (2)* (P0)* (Y+ - Y-)] Where: P 0 = the bond 's initial price per $100 of …

Oct 6, 2020 · For example, if the yield on a five-year Treasury increases by five basis points, then the yields on all other Treasuries also increase by five basis points. In the real world, parallel …

Oct 6, 2020 · For instance, if one 10-year swap, XYZ, has a fixed rate of seven percent and a 10-year Treasury bond with the same maturity date has a fixed rate of five percent, the swap …

Oct 6, 2020 · The yield spread is 2%. Spreads are generally described in ' basis points,' which is abbreviated ' bps ' and pronounced 'beeps.' One percentage point is equal to 100 bps. In the …

Oct 6, 2020 · Company XYZ issues $10 million in 15-year corporate bonds with a variable interest rate of LIBOR + 150 basis points. LIBOR is currently 3%, so Company XYZ pays bondholders …

May 16, 2021 · Come December 31, 2014, the rate resets to the five-year Canada bond plus 315 basis points (3.15%). The five-year bond rate has averaged around 1.4% over the past few …

Aug 21, 2020 · The Fed Funds rate is typically 25 basis points (bps) lower than the discount rate. The Federal Reserve sets the discount rate and sets a target rate for the Fed funds rate, which …