Average life

• In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

• Also referred to as the weighted-average life (WAL). The average number of years that each dollar of unpaid principal due on the mortgage remains outstanding. Average life is computed as the weighted average time to the receipt of all future cash flows, using as the weights the dollar amounts of the principal pay downs.


Follow this link for all the terms related to average.

 Embedded terms in definition
Cash flow
Weighted average
 Related Terms

<< Average high pe Average low price >>

What Happens If a Bank Fails?: How the FDIC protects depositors, including providing quick access to insured funds. More...

Never regard study as a duty, but as the enviable opportunity to learn to know the liberating influence of beauty in the realm of the spirit for your own personal joy and to the profit of the community to which your later work belongs. - Albert Einstein (1879-1955)


Copyright 2009-2018 GVC. All rights reserved.