Suppose 1-year Treasury bonds yield 3.40% while 2-year T-bonds yield 5.50%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero, what is the yield on a 1-year T-bond expected to be one year from now? Do not round your intermediate calculations. Round your final answer to 2 decimal places.

a. 7.90%

b. 3.78%

c. 7.64%

d. 5.44%

e. 4.45%