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Basis Price

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Dictionary Says

Definition of 'Basis Price'

Price quotation for a security expressed in terms of yield to maturity. This will usually only be quoted on fixed-income securities such as bonds.
Investopedia Says

Investopedia explains 'Basis Price'

For example, if a bond price was quoted as 10% and this was also the yield to maturity, then the 10% would be the basis price.

Related Definitions

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    Bond

    A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used ...
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  • Yield To Maturity - YTM

    The rate of return anticipated on a bond if it is held until the maturity date. YTM is considered a long-term bond yield expressed as an annual rate. The calculation of YTM takes into ...
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  • Fixed-Income Security

    An investment that provides a return in the form of fixed periodic payments and the eventual return of principal at maturity. Unlike a variable-income security, where payments change ...
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    • Maturity

      1. The length of time until the principal amount of a bond must be repaid. 2. The end of the life of a security.
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