What does CD-ROM mean? CD-ROM, compact disc read-only memory (noun) a compact disk that is used with a computer (rather than with an audio system); a large amount of digital information can be stored and accessed but it cannot be altered by the user
The average life, also referred to as the âweighted average lifeâ or âweighted average maturityâ or âWAM,â is a reflection of the rapidity with which the principal of an issue is expected to be paid.
Divide the sum of the time-weighted payments by the bond's principal. Continuing the example, divide $17,000 by $7,000 to get 2.4. The bond has a weighted average life of 2.4 years. You can also calculate the weighted average life of an entire bond portfolio, in which each payment results from a different bond's maturity.