MONEY MARKETS
Weighted Average Rate
Calculates an exposure- or volume-weighted average interest rate.
Formula
WAR = Σ(w_i r_i)/Σw_i
Variables: Rates r_i; transaction/exposure weights w_i
What it means
Calculates an exposure- or volume-weighted average interest rate.
Example
Two trades of unequal size contribute in proportion to their weights rather than equally.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.