Comments on How can I re-write or supplant “basis point” UNambiguously?
Post
How can I re-write or supplant “basis point” UNambiguously?
For this question, please DON'T use or even allude to "basis point" in your rewording, because I'm trying to replace "basis point"! "basis point" befuddles me! Basis Point (BPS) Definition
One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form.
Please peruse quotation below. Can I remove all ambiguity, if I just add "absolute" or "relative" before the percentage change? In Scenario 1 below, I'd say 5% absolute increase. In Scenario 2, I'd say 5% relative increase. If this is still ambiguous, how else can I word and disambiguate them?
Consider the following statement: "The bond's yield was 10% before rising 5%." This expression may be interpreted in two entirely different ways. [Scenario 1 of 2] In one scenario, the 5% increase is absolute, in which case the new yield is 15%. [Scenario 2 of 2] Alternatively, the increase could have been relative, where 5% of 10% is 0.5%. In this scenario, the new yield would be 10.5%.
1 comment thread