2 - Dayroll Conventions

Question 1

Explain the below Dayroll Convention:

Following

Answer 1

The adjusted date falls in the first business day.

Question 2

Explain the Following Dayroll Convention:

Modified Following

Answer 2

If the next business day is in the next month, the last preceding business day is used. This enables the adjusted date to fall in the same month as the unadjusted date.

Question 3

Explain the Following Dayroll Convention:

Preceding

Answer 3

The adjusted date is the last business far omg or before the unadjusted date.

Question 4

Explain the Following Dayroll Convention:

Modified Preceding

Answer 4

If the last preceding business day falls in another month, the next following business day is used so that the adjusted date lies in the same month as the unadjusted date.

Question 5

Explain the Following Dayroll Convention:

End of Month

Answer 5

The adjusted date always coincides with the last day of the month in which the unadjusted date falls