Suppose the rate of return on a $10-$year T$-$bond is $5\mathrm{.}45\%,$ the expected average rate of inflation over the next $10$ years is $2\mathrm{.}0\%,$ the MRP on a $10-$year T$-$bond is $0\mathrm{.}9\%,$ 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? Disregard cross$-$product terms, i$.$e$.,$ if averaging is required, use the arithmetic average.

$2\mathrm{.}38\%$

$2\mathrm{.}94\%$

$3\mathrm{.}04\%$

$2\mathrm{.}99\%$

$2\mathrm{.}55\%.$