Basis Price


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.


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.
  1. Maturity

    The period of time for which a financial instrument remains outstanding. ...
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  3. Bond

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  4. Fixed-Income Security

    An investment that provides a return in the form of fixed periodic ...
  5. U.S. Savings Bonds

    A U.S. government savings bond that offers a fixed rate of interest ...
  6. Coupon

    The annual interest rate paid on a bond, expressed as a percentage ...
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