average life definition

average life

Average period before the principal of a debt security (bond, debenture, note) is scheduled to be repaid. It is used in comparing debt securities of different maturities and different repayment schedules. See also half life.

Alternative term for economic life.

average life is in the Accounting & Auditing and Securities & Futures Trading subjects.

average life appears in the definition of the following term: bond year

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