lBOR and BD e liBOR is the rate of interest at which a bank is prepared to deposit money with another bank. (The second bank must typically have a aa rating) LIBOR is compiled once a day by the british Bankers association on all major currencies for maturities up to 12 months o LIBid is the rate which a aa bank is prepared to pay on deposits from anther bank Options, Futures, and other Derivatives 8th Edition Copyright O John C Hull 2012LIBOR and LIBID LIBOR is the rate of interest at which a bank is prepared to deposit money with another bank. (The second bank must typically have a AA rating) LIBOR is compiled once a day by the British Bankers Association on all major currencies for maturities up to 12 months LIBID is the rate which a AA bank is prepared to pay on deposits from anther bank Options, Futures, and Other Derivatives 8th Edition, Copyright © John C. Hull 2012 4