Weighted average life

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Weighted average life

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Weighted Average Life

The amount of time for the principal on a loan or a mortgage to be paid off. The length of the weighted average life depends on the amount of principal paydowns and how often they are made. Once the WAL is calculated, one can determine how long it will take to pay off half of the remaining principal.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The classes have weighted average lives of 1.03, 2.77, 3.50 and 4.05 years, respectively.
The classes have weighted average lives of 1.02, 2.76, 3.62 and 4.08 years, respectively.

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