  We apply results of Malliavin-Thalmaier-Watanabe for strong and weak Taylor
expansions of solutions of perturbed stochastic differential equations (SDEs).
In particular, we work out weight expressions for the Taylor coefficients of
the expansion. The results are applied to LIBOR market models in order to deal
with the typical stochastic drift and with stochastic volatility. In contrast
to other accurate methods like numerical schemes for the full SDE, we obtain
easily tractable expressions for accurate pricing. In particular, we present an
easily tractable alternative to ``freezing the drift'' in LIBOR market models,
which has an accuracy similar to the full numerical scheme. Numerical examples
underline the results.
