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.
BREAKING DOWN 'Weighted Average Life-WAL'. The time weightings are based on the principal paydowns-the higher the dollar amount, the more weight that corresponding time period will have. For example, if the majority of the repayment amount is in 10 years the WAL will be closer to 10 years. Let's say there's an outstanding bond with five years of $1,000 annual payments. The weighted average life would be three years, assuming payment is made at the end of each year. This indicates that after three years over half of the payments will be made.