Kop Corporation's 5-Year Bonds Yield 6

Kop Corporation's 5-year bonds yield 6.50%,and T-bonds with the same maturity yield 4.40%.The default risk premium for Kop's bonds is DRP = 0.40%,the liquidity premium on Kop's bonds is LP = 1.70% 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) 2.04%
B) 2.14%
C) 2.26%
D) 2.38%
E) 2.50%