The weighted average life (WAL) is the average length of time that each dollar of unpaid principal on a loan, amortgage, or anamortizing bondremains outstanding. Calculating WAL shows an investor, an analyst, or
Weighted Average Life The amount of time that the average dollar of principal on a loan remains outstanding is called the weighted average life. You can use the weighted average amortization period calculation formula to find this value. We Recommend Personal Finance The Average Rate of Return of ...
Weighted average maturity (WAM) and weighted average loan age (WALA) are both used to estimate the likelihood of an investment in a mortgage-backed security being profitable. However, WAM tends to be a more broadly used measure for the maturity of pools of mortgage-backed securities. It measur...
Define Weighted Average Maturity. means the average length of time to legal maturity or, if shorter, to the next interest rate reset to a money market rate, of all of the underlying assets in a Money Market Fund reflecting the relative holdings in each a
Maximum Weighted Average Life Testmeans a test that will be satisfied on any date of determination if the Weighted Average Life of all Eligible Collateral Obligations included in the Collateral is less than or equal to 5.50 years. Weighted Average Floating Spreadmeans, as of any date of determina...
Capitalization-Weighted Index: Definition, Calculation, Example Do you ever wonder how stock market indices like the S&P 500 or the Dow Jones Industrial Average are calculated? Well, one of the most commonly used methods is the capitalization-weighted index. In this blog post, we will explore wh...
Explain why the total value of all of the securities used to finance a firm must be equal to the value of the firm. Explain the concept of the weighted average cost of capital and how to calculate the component costs. How is a company's cos...
Which of the following statements is/are true Ⅰ. The SML required return for K should be below the expected return on the market. Ⅱ. K has above-average covariance with the market portfolio, M Ⅲ. A portfolio of 70% M and 30% risk-free asset will have the same expected return as ...
Banks are required to maintain an amount of capital in order to reduce risk to the financial system. If a borrower defaults on their loan payments to the bank, the bank uses its reserves to cover its losses. If a bank does not have enough reserves, it might default on its ow...
in mathematics, the weighted mean is one of the types to calculate the average of the values. the weighted mean is also known as the weighted average. in the weighted mean, the average value can be calculated by providing different weights to some of the individual values. if all the ...