Suppose the real risk-free rate is 4.00% and the future rate of inflation is expected to be constant at 3.40%. What rate of return would you expect on a 1-year Treasury security, assuming the pure expectations theory is valid? Include cross-product terms, i.e., if averaging is required, use the geometric average. (Round your final answer to 2 decimal places.) a. 3.54% b. 7.40% c. 7.54% d. 4.00% e. 4.14%