Context: timing future cash flows of an investment with periodic payments. I've already come up with a calculator that, using inputs, calculates future cash flow payment dates periodically based on frequency of payments in the structure of this investment.
What I would like to do is adjust future cash flow payment dates for both public holidays and weekends as these cash flows can only be executed on business days. This adjustment is very important as it affects the daily compounding of the interest component of these cash flows. Furthermore, these public holidays are jurisdiction dependent and not just based on national public holidays, hence this must also be accounted for.
I've come up with a way of allocating a place value between 1-7 for weekdays so that cash flows in positions 1 (Sunday) or 7 (Saturday) are adjusted to the next business day. But how to adjust for public holidays is difficult due to the number of jurisdictions (8 in total) and how some public holidays apply to select states only (relevant for the jurisdiction in which the originating financial institution is based).
Ideas?
Thanks
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