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.

BREAKING DOWN '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.
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    Determining various the various yields that callable bonds can provide investors is an important factor in the bond purchasing ... Read Answer >>
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