- What is the equation for the half life of a zero order process?
- What does weighted average life mean?
- How do prepayments affect weighted average life?
- How do I calculate a weighted average?
- Is weighted average life the same as duration?
- What is the life of the loan?
- What is Bond duration vs maturity?
- What is difference between maturity and duration?
- Is Higher bond duration better?
What is the equation for the half life of a zero order process?
|plot needed for linear fit of rate data||[A] vs. t||ln[A] vs. t|
|relationship between slope of linear plot and rate constant||k = −slope||k = −slope|
|Table 22. Summary of Rate Laws for Zero-, First-, and Second-Order Reactions|
What does weighted average life mean?
The weighted average life (WAL) is the average length of time that each dollar of unpaid principal on a loan, a mortgage, or an amortizing bond remains outstanding.
How do prepayments affect weighted average life?
Prepayments reduce WAL, meaning less interest income is earned over the life of the bond, and that life is shortened by each prepayment.
How do I calculate a weighted average?
In mathematics and statistics, you calculate weighted average by multiplying each value in the set by its weight, then you add up the products and divide the products’ sum by the sum of all weights. As you see, a normal average grade (75.4) and weighted average (73.5) are different values.
Is weighted average life the same as duration?
Bond duration is the weighted-average time to receive the discounted present values of all the cash flows (including both principal and interest), while WAL is the weighted-average time to receive simply the principal payments (not including interest, and not discounting).
What is the life of the loan?
The “Term” you input on your order determines how long we will track a loan. If you input 10 years, that is the life of the loan and that is how long Nationwide will track it. There is a Renewal charge for extending loan terms on expired loans.
What is Bond duration vs maturity?
While maturity refers to when a bond expires, or matures, duration is a measure of the bond’s price sensitivity to changes in interest rates. While the two concepts are related, they also differ significantly.
What is difference between maturity and duration?
In plain English, “duration” means “length of time” while “maturity” denotes “the extent to which something is full grown.” When bond investors talk about duration it has a very specific meaning: The sensitivity of a bond’s price to changes in interest rates.
Is Higher bond duration better?
Generally, the higher the duration of a bond or a bond fund (meaning the longer you need to wait for the payment of coupons and return of principal), the more its price will drop as interest rates rise.