Kop Corporation's 5-year bonds yield 6.50%, and T-bonds with the same maturity yield 4.10%. The default risk premium for Kop's bonds is DRP = 0.40%, the liquidity premium on Kop's bonds is LP = 2.00% 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*?

2.31%

2.75%

2.07%

2.02%

2.20%