Average weighted price is computed for most bond funds by weighting the price of each bond by its relative size in the portfolio. This number reveals whether the fund favors bonds selling at prices above or below face value (premium or discount securities, respectively) and can also serve as an indicator of interest-rate sensitivity. This statistic is expressed as a percentage of par (face) value. It is not calculated for international-bond funds, because their holdings are often expressed in terms of foreign currencies.
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