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When assessing interest rates and investment returns, many investors wonder what is a basis point is. The basis point is an expression used in financial markets to describe tiny percentage changes, and is easier to understand and communicate. The common bps is one-hundredth of one percent (0.01%). A bps calculator is a tool that financial professionals use to easily convert basis points to percentages. Similarly, a basis point calculator is helpful for investors to consider rate changes, loan expenses, and investment returns.
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