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What reinvestment rate r2-3 for lending in the third year

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It is currently date 0. The 2-year rate of interest (i.e. between dates 0 and 2) is r2 = 4% per year and the 3-year rate of interest (i.e. between dates 0 and 3) is r3 = 5% per year. What reinvestment rate r2,3 for lending in the third year (i.e. between dates 2 and 3) can a firm lock in today at date 0?

Reference no: EM132403243

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