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.
With these bonds, investors like to receive their returns as soon as possible. The bond's weighted average life helps investors gauge how quickly bonds pay out returns. The average life is the average length of time that each dollar in the principal remains unpaid. Step 1 Multiply each of the bond's payments by the number of years until the issuer pays each of them.