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on pledged revenues. <br /> Subordinate Lien Debt: Debt whose terms require it to be repaid with pledged <br /> revenues net of the amount necessary to make debt service payments on senior <br /> lien debt. <br /> Surety Bond: An alternative to a fully funded debt service reserve fund. A <br /> surety bond can be purchased from a bond insurance provider to fulfill the role of <br /> debt service reserve fund and can be drawn upon in the event an issuer cannot <br /> make a regularly scheduled debt service payment. A surety bond must be <br /> purchased and is subject to credit approval by a bond insurance provider. The <br /> provider charges an upfront fee for the surety bond. <br /> Weighted Average Maturity: With respect to an issue of bonds, the weighted <br /> period of time required to repay half of the issue through scheduled principal <br /> payments. The weighted average maturity is also referred to as the "weighted <br /> average life" or "average life" reflects how rapidly the principal ofan issue is <br /> expected to be paid. Under one commonly used calculation method, average life <br /> is equal to the total bond years divided by the total number of bonds. <br /> Yield: The net rate of return, as a percentage, received by an investor on an <br /> investment. Yield calculations on a fixed income investment, such as a bond issue, <br /> take purchase price and coupon into account when calculating yield to maturity. <br /> City of Pleasanton Debt Management Policy (February 2022) Page 17 <br />