yield to average life

yield to average life definition - business

yield to average life

The average yield on a fixed-income security, assuming an average life for the security. In the case of bonds, average life may be significantly less than the number of years until maturity because of sinking fund requirements. Thus, the investor may be forced to sell the bond back before maturity.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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