A yield calculation in which bonds are retired routinely during the life of the issue . Since the issuer buys its own bonds on the open market because of sinking fund requirements , if the bonds are trading below par , this provides automatic price support for these bonds and they will usually trade on a yield to average life basis.
YIELD TO AVERAGE LIFE
Meaning of YIELD TO AVERAGE LIFE in English
Campbell R. Harvey. Hypertextual finance English glossary. Английский словарь гипертекстовых финансов. 2012