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Yields are a combination of the coupon rate on a note or bond and the capital gain or capital loss that the holder will receive
Yields are a combination of the coupon rate on a note or bond and the capital gain or capital loss that the holder will receive if the bond is held to maturity. The 10 year note on September 17th 2020 was about 0.68%, notice that it was less than one percentage point. If the yield goes up to 0.7%, that small increase would be measured in "basis points." How many basis points did the yield go up? Traders in fixed income securities try to make a profit on small changes. They have to trade hundreds of millions of note/bonds to make money trading. a. $20,000 Ob..02 percent c. Two basis points d. 20 basis points
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