**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

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**.

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