You are advising a relative on the markets expectation for future interest rates. You have observed that current spot rates on 2-year money are 3.75% and current spot rates on 5-year money are 4.4%. What is the market predicting for the rate on 3-year money, two years from now?

If you believe that the actual 3-year interest rate, two years from now, will be 5.5%, instead of the rate computed above, which of the following would be the appropriate course of action for the borrower to take?