Consider these long$-$term investment data:

The price of a $10-$year $$100$ par value zero coupon inflation$-$indexed bond is $$86\mathrm{.}96.$

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 $($i$.$e$.,$ inflation$-$indexed$)$ bond. $($Do not round Intermedlate calculatlons. Round your answer to $2$

decimal places.$)$

Real bond annual rate