0,05 of a percentage point, i.e the difference of 0,05%.
Basis points (bps) refer to the change of percentages.
1 bp = 0,01% change
1% change = 100 bps
(The increase of Interest rate from 3,5% to 3.75% can be described as the increase by 25 basis points.)
0.4% . 100 basis points are equal to 1%
0.65%
2.5%
4%
1.5%
.2
0.04%
.2%
1.4%
500
A basis point is one-one hundredth of a percent...so, 100 basis points.
The term basis point is a percentage measurement used to compare losses and gains on fixed income investments such as a bond. One basis point is equal to 0.01%.