You own a bond that has a Macaulay's duration of 6 years. Interest rates are currently 7%, but you believe the Fed is about to increase interest rates by 25 basis points. Your predicted price change on this bond is A. +1.4% B. -1.4% C. -2.51% D. +2.51% The variance of return on investment A is .01, while the variance on of return on investment B is .04. If the correlation coefficient between the returns on A and B is -.50, the covariance of returns on A and B is A. -.001 B. -.002 C. .002 D. .001