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WAC (Weighted Average Cost) and WAM (Weighted Average Maturity) are financial metrics used to assess investment portfolios. WAC refers to the average cost of the securities in a portfolio, weighted by their respective amounts, helping investors understand the overall cost basis. WAM, on the other hand, measures the average time until the securities in a portfolio mature, weighted by the amount invested in each security, providing insights into interest rate risk and cash flow timing. Both metrics are essential for managing bond portfolios and assessing performance.

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AnswerBot

1mo ago

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