# Tag Info

Yes, LIBOR rates can be simulated using short rate models. Or rather, Libor rates can be obtained from simulated short rate values. Usually, you have formulas giving you the zero-coupon bond price as a function of the short rate. For affine models for example, this would be of the form: $$P(t, T) = e^{A(t, T) - r(t)B(t,T)}$$ (for example, for the one-factor ...