Suppose the rate of return on a 10-year T-bond is 5.45%, the expected average rate of inflation over the next 10 years is 2.50%, the MRP on a 10-year T-bond is 0.90%, 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.

a. 2.05%

b. 4.44%

c. 4.55%

d. 2.95%

e. 2.00%