Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $$100.$ The stock pays a quarterly dividend of $$1\mathrm{.}00$ and its current price is $$109.$

a$.$ What is its nominal annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

$\%$

b$.$ What is its effective annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

$\%$