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5-year Treasury bonds yield 5.4%. The inflation premium (IP) is 1.8%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.3%. There is no

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5-year Treasury bonds yield 5.4%. The inflation premium (IP) is 1.8%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.3%. There is no liquidity premium on these bonds. What is the real risk-free rate, r*? 4.10% 3.80% 4.04% 3.77% 3.30%

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