Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'weighted average remaining term'?

A. arithmetic mean between bid and offer prices
B. weighted-average gross interest rates of the pool of mortgages that underlie a mortgage-backed security (MBS) weighed by their balances at the time the securities were issued
C. measure of the monthly rate of loan prepayments as a percentage of the original pool balance
D. weighted average time to maturity of a portfolio of asset-backed securities (ABS) or mortgage-backed (MBS) securities

Answer: weighted average time to maturity of a portfolio of asset-backed securities (ABS) or mortgage-backed (MBS) securities