A bond with a face value of $$1,000,$ coupon rate of $5\%$ and $1$ year to maturity is priced today at its face value. Suppose that expected inflation is $2\%.$ What is the annual real return of the bond?

A$.2\mathrm{.}9\%$ B$.7\mathrm{.}1\%$ C$.-2\mathrm{.}1\%$ D$.5\mathrm{.}7\%$