The average time it takes for a mortgage in a pool to be paid off is referred to as which one of the following?

Question

Quizplus · Accepted Answer

The term "average life" is commonly used in the context of mortgage-backed securities to refer to the average time it takes for the mortgages in a pool to be fully paid off. This is an important metric for investors because it affects the cash flows and duration of the securities. Options A, B, C, and E do not accurately describe this concept.

The Average Time It Takes for a Mortgage in a Pool