How can i project a 6 moths Libor?

Question

How can i project a 6 moths Libor? i have a historical data from 1981-2007, but since it doesn't have normal distribution .. i dont have any idea how to do it

Answer 1

There is no way to predict with perfect confidence what direction interest rates will move in the future.  If such a thing were possible then people would buy or sell bonds to make money from the movement in rates, which would alter the change in rates.