What is defined as the sum of the products of the time when principal payments are received and the amount of principal received all divided by total principal outstanding?
A)Weighted-average life.
B)Burn-out factor.
C)Degree of collateralization.
D)Option-adjusted spread.

Question

Quizplus · Accepted Answer

The given definition is of weighted-average life, which is a measure of the expected life of an asset or security based on the timing and amount of received principal payments.

What Is Defined as the Sum of the Products of the Time