Options for B are( maturity , modified duration)Options for c are ( increases, decreases)

Problem 13-03 The Clarence Corporation has issued bonds that pay semiannually with the following characteristics: Coupon Yield to Maturity Maturity Macaulay Duration 10% 10% 13 7.55 years a. Calculate modified duration using the information provided. Do not round intermediate calculations. Round your answer to two decimal places. Use only the data provided in the table above (in the problem statement) for your calculations. years b. What is a better measure when calculating the bond's sensitivity to changes in interest rates? -Select- is a better measure of the bond's sensitivity to changes in interest rates as |-Select- considers only the final cash flow, while -Select- includes other factors. c. Identify the direction of change in modified duration if: 1. the coupon of the bond were 6%, not 10%. Modified duration -Select- ~ as the coupon decreases. 2. the maturity of the bond were 5 years, not 13 years. Modified duration -Select- ~| as maturity decreases