Assume you have calculated the duration of a bond and it is 7.5. You see 85 percent odds of an Economic Expansion happening during which interest rates would go from 1.5% to 3.5%. The only other scenario you see is a Recession during which interest rates would go from 1.5% to 0.25%.

A) Calculate the approximate price change of the bond in both scenarios.

B) Also, calculate the expected return, using only the prices change, and taking into consideration all states.