An active fixed-income manager is considering two corporate bond positions for an active portfolio. The first bond has a BBB rating with a credit spread of 2.75% and an effective spread duration of 6, and the second bond has a BB rating with a credit spread of 3.50% and an effective spread duration of five years.

What is the instantaneous (holding period of zero) excess return for the BB rated bond if the spread widens by 50 bps?

A. 3.00%

B. −2.50%

C. 2.50%