Assume that the term structure is flat at 1.4% (annualized interest rate). Bonds A and B have (Macaulay) durations 7.5 and 11 years, respectively. Consider a portfolio investing 40% in bond A and 60% in bond B. Based on the duration approximation, what would the (approximate) net return on this portfolio be if the interest rate changed from 1.4% to 0.4%?

Group of answer choices

A)9.47 %

B)8.52 %

C)-8.52 %

D)-9.47 %