28. You own a bond that has a duration of 6 years. Interest rates are currently 7% but you believe the Fed is about to increase interest rates by 0.25%. The predicted price change on this bond would be A. +1.40% B.-1.40% C.-2.51% D. +2.51% 29. An investor who expects declining interest rates would maximize their capital gain by purchasing a bond that has a _ coupon and a term to maturity. A. low, long B. high; short C. high; long D. low; short Bond Years to Maturity WN Yield to Maturity 6.00% 7.50% 7.99% 8.49% 10.70% 30. The expected three-year interest rate two years from now should be A. 9.55% B. 11.74% C. 12.89% D. 13.73% E. 14.89%