# What is weighted average life wal? - (FAQ)

ANSWER: The weighted average life (WAL) is the average length of time that each dollar of unpaid principal on a loan, a mortgage or an amortizing bond remains outstanding. Calculating the WAL shows an investor, an analyst, or a portfolio

## How to Calculate the Weighted Average Life for Bonds ?

The weighted average life (WAL) of amortizing bonds represents the length of time that the dollar amount of unpaid principal remains outstanding.

The weighted-average life is calculated as the product of the amount of principal payment times the timing of the payment divided by the total amount of principal outstanding. Duration differs from WAL by using the present value of cash flows relative to the current present value of the asset as the weights in calculating the average life. 21.

The purpose of the WAL is the calculation of when, on average, the principal payment will be paid again. In order to calculate the WAL, you take the See full answer below.

We've got 1 shorthand for Weighted Average Life » What is the abbreviation for Weighted Average Life? Looking for the shorthand of Weighted Average Life?This page is about the various possible meanings of the acronym, abbreviation, shorthand or slang term: Weighted Average Life.