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 1.46%, 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

1.01%

0.99%

1.21%

1.10%

1.14%