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Suppose the rate of return on a 1 0 - year T - bond is 5 . 5 5 % , the expected average rate

Suppose the rate of return on a 10-year T-bond is 5.55%, the expected average rate of inflation over the next 10 years is 3.50%, the MRP on a 10 year T-bond is 0.9%, no MRP is required on a TIPS, and no liquidity premium is required on any Treasury security. Given this information, what should the yield be on a 10-year TIPS?
1.15%
-1.15%
2.95%
3.32%
-2.95%
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