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Yield to average life |
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Yield to average lifeA yield calculation in which bonds are retired routinely during the life of the issue. Since the issuer buys its own bonds on the open market because of sinking fund requirements, if the bonds are trading below par, this action provides automatic price support for these bonds and they will usually trade on a yield to average life basis.Yield to average life Similar MatchesWith Particular Average (WPA)With Particular Average (WPA)See: With Average Simple moving averageSimple moving averageThe mean, calculated at any time over a past period of fixed length. Moving averageMoving averageMoving averages are one of the oldest and most popular of technical analysis tools. A simple moving average is calculated by adding together the closing prices of a financial instrument over a certain number of days and then dividing the sum by the number of days involved. So, for example, the seven day average for a share price would be calculated by taking seven days worth of data, adding them together and dividing by seven.To calculate the *moving* average:Start by taking the first seven days worth of data and calculating the average value. This is your first point on the moving average chart.Then add the prices for Days 2-8 together and divide by 7. This is the second point on your moving average chart. Continue doing this for Days 3-9, 4-10 and so on, each time plotting the average on the chart. You now have a moving average chart.There are lots of ways of interpreting moving averages. The most basic is to treat a change of direction in the moving average as a signal to buy or sell, so if the moving average has been consistently rising and then it falls, that is a signal to sell.The classical interpretation, used by most technical analysts, is to compare the moving average with the price of the underlying share and to plot them both on the same graph. Before the share price rises above its moving average, buy the share; when it falls below its moving average, sell the share. That is putting it in extremely simple terms, and for a more sophisticated understanding, read one of the many books on the subject. An analyst would normally also consider other types of indicator before making a decision. Weighted average lifeWeighted average lifeSee: Average life Average lifeAverage lifeAlso referred to as the weighted-average life (WAL). The average number of years that each dollar of unpaid principal due on the mortgage remains outstanding. Average life is computed as the weighted-average time to the receipt of all future cash flows, using as the weights the dollar amounts of the principal paydowns. Further SuggestionsAverage upAverage discount rate With Average (WA) Dow Jones Industrial Average Average rate of return (ARR) General Average General Average Contribution Average cost average true range bands Free of Particular Average Average propensity to import Arithmetic average (mean) rate of return Weighted average Coupon average price IBCs money fund report average exponential moving average Nikkei stock average Average tax rate Moving Average Convergence/Divergence Lipper Mutual Fund Industry Average Average propensity to consume Weighted average remaining maturity Average Directional Movement Average daily balance Import-weighted average tariff |
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