Modified following business day convention

Definition:

A business day convention whereby payment days that fall on a holiday or a Saturday or a Sunday roll forward to the next target business day. If that day falls in the next calendar month, the payment day rolls backward to the immediately preceding target business day.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Credit Terms

The conditions under which credit will be extended to a customer. The components of credit terms are: cash discount, credit period, net period.

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