interest rate that is paid on deposits in the interbank market. It is a bid
rate, or an interest rate that a bank will pay on eurocurrency deposits. It is
the London Interbank Offered rate (LIBOR), which is the rate that international
banks typically charge each other for loaning Eurodollars overnight in the
London market. It is a frequently quoted rate that is used to price a variety
of financial issues and short-term debt. Often, interest rates are quoted at an
amount above LIBOR. It also may be called a London Interbank Bid rate (LIBID).