Kop Corporation's 5-year bonds yield 6.50%, and T-bonds with the same maturity yield 3.00%. The default risk premium for Kop's bonds is DRP = 0.40%, the liquidity premium on Kop's bonds is LP = 3.10% 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*?

a. 0.99%

b. 1.14%

c. 1.21%

d. 1.01%

e. 1.10%