Consider these long-term investment data:
• The price of a 10-year $100 par zero coupon inflation-indexed bond is $81.74.
• A real-estate property is expected to yield 2% per quarter (nominal) with a SD of the (effective) quarterly rate of 10%.
Compute the annual rate on the real bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Real bond annual rate%