medium · Asset-Backed Securities collateral

What is the Weighted Average Life (WAL) of a 3-year annual-pay bond that pays 50 in Year 1,0 in Year 2, and 50 in Year 3?

  1. 2.0 years.
  2. 3.0 years.
  3. 1.5 years.
  4. 2.5 years.

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