AVERAGE LIFE


Meaning of AVERAGE LIFE in English

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 paydowns.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.