A 5-year Treasury bond has a 5% yield. A 10-year Treasury bond has a 6% yield. The market expects that inflation will average 2.5% over the next 10 years. Assume that there is no maturity risk premium (MRP = 0), and that the annual real risk-free rate of interest, r*, will remain constant over the next 10 years. What does the market expect that inflation will average over the next five years?

A) 1.5% B) 2.0% C) 1.0% D) 3.5% E) 2.5%