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Problem 5-18 Consider these long-term investment data: . The price of a 10-year $100 par zero coupon inflation-indexed bond is $89.99 A real estate property

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Problem 5-18 Consider these long-term investment data: . The price of a 10-year $100 par zero coupon inflation-indexed bond is $89.99 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 %

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