Template:Business day conventions
Business day conventions for your reading pleasure
- No Adjustment business day convention: The keep calm and carry on option: non-workdays of any kind are effectively ignored. Cashflows falling on non-workdays are assumed to be distributed on the actual date.
- Previous business day convention: Back to the day before: Cashflows falling on non-workdays are assumed to be distributed on the previous business day.
- Following business day convention: Cashflows falling on a non-workday are assumed to be distributed on the [[next] business day.
- Modified Previous business day convention: Cashflows falling on a non-workday are assumed to be distributed on the previous business day unless it would fall in a different month, in which case it’s the next business day.
- Modified Following business day convention: Cashflows falling on a non-workday are assumed to be distributed on the [[next] business day unless it would fall in a different month, in which case it’s the previous business day.
- End of month - no adjustment business day convention: All cashflows are assumed to be distributed on the final day of the month (even if it is not a workday).
- End of Month - Previous business day convention: All cashflows are assumed to be distributed on the final day of the month unless it is not a workday, in which case it's the previous business day.
- End of Month - Following business day convention: All cashflows are assumed to be distributed on the final day of the month unless it is not a workday, in which case it's the next business day.