<t>Germozyou are evolving ALL forward rates simultaneously in the Libor Market Model - the spot forward rate does not become the 12 month into 12 month rateT f1 f2 f30 3% 3.4% 3.8%1 x 3.6% 3.7%2 x x 3.5%in the formula you quoted the indices on f are fixed from your initial time point- f3, for instan...