Basis Point
One one-hundredth of one percent (.01%).
One percent or 1%. A Bond that is discounted two Points is quoted at 98% of its Par (Principal amount) value. Because the dollar prices of municipal Bonds are quoted as a percentage of $1,000, a Point is worth $10 regardless of the actual Denomination of a particular Bond. For example, a bond discounted 2 Points, or $20, is quoted at “98” (98% of its Par Value), or $980 per $1,000.
One one-hundredth of one percent (.01%).
Pronounced “slugs,” an acronym for “State and Local Government Series,” which are special United States Treasury securities sold to issuers and conduit borrowers directly by subscription from the Department of the Treasury.