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What is a basis point?
A base factor is a hundredth (1/100) of an amount factor. Indicated another way, one amount factor is equal to 100 base factors. This means that if an amount falls by 1/2 of an amount factor (such as from 4% to 3.5%), the drop is 50 base factors. If an amount improves from 3.75% to 3.90%, the increase is 15 base factors.
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