You read that 3-month T-bills are currently yielding 5.8%. Your brother, a broker, has given you the following estimates of current interest rate premiums: Inflation premium (IP) = 5.0%; Liquidity premium (LP) = 0.6%; Maturity risk premium (MRP) = 1.85%; Default risk premium (DRP) = 2.15%. On the basis of these data, what is the real risk-free rate of return, r*?

a. 15.4%

b. 10.8%

c. 0.80%

d. 5.8%