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Average life at bonds market and yield to average life
Hey,I need some help with that please:What is average life at the bonds market? how is it computed?what is the formula?What is the yield to average life? what is the formula?When do I use average life in fixed income security? only at MBS and ABS? or at bonds also? and when in bonds?
Average life at bonds market and yield to average life
One way of quantifying the average life of a bond is to calculate the duration. For more info see Investopedia