Consider these long-term investment data:

• The price of a 10-year $100 par value zero coupon inflation-indexed bond is $88.70.
• 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 intermediate calculations. Round your answer to 2 decimal places.)