NOT 30.98, 31

The following two investment options are viewed under an annual effective interest rate of i. - Investment A is a 10-year zero coupon bond which redeems at par-value 250. - Investment B is a perpetuity-immediate paying an annual payment starting with 4 and having each successive payment increase by K% from the previous payment. If the volatility of each investment is 8 , then find the value of K. Give your answer as a decimal rounded to two places (i.e. X.XX)...i.e. if your answer was K%=2.54%, you would answer 2.54