Glossary
Basis Points
Represented as "bp, bps", it is an interest rate unit that is equal to 1/100th of an interest percentage point and is used to represent interest rates that are less than one percentage point. For example - 50bps (or basis points) is equal to half of an interest rate percentage point. It is common for a premium finance lender to offer a loan that is based on the 12-month LIBOR interest rate plus an amount of additional interest rate basis points.
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