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Kop Corporation's 5 - year bonds yield 6 . 5 0 % , and T - bonds with the same maturity yield 4 . 0

Kop Corporation's 5-year bonds yield 6.50%, and T-bonds with the same maturity yield 4.00%. The default risk premium for Kop's bonds is DRP =0.40%, the liquidity premium on Kop's bonds is LP =2.10% versus zero on T-bonds, the inflation premium (IP) is 1.50%, and the maturity risk premium (MRP) on 5-year bonds is 0.40%. What is the real risk-free rate, r*?
Group of answer choices
2.23%
2.25%
2.10%
2.18%
2.58%

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