Modified following business day convention

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A popular means of calculating interest periods and determining interest payment dates. Nearly as popular as the following business day convention. If the end of your interest period would end on a non-business day, you roll forward to the next following one, unless that would fall in the following month, in which case you roll back to the immediately preceding business day. Popular with the tax- and accounting-obsessed, who care about what period you book a profit or revenue stream in.

See also

• Business day convention