Tools Problem 13-03 A- Tips Tips the Clarence Corporation has issued bonds that pay semiannually with the following characteristics: Coupon Yield to Maturity Maturity Macaulay Duration 12% 129 13 6.89 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 is a better measure of the bond's sensitivity to changes in interest rates as considers only the final cash now, while Salad Includes other factors. Identify the direction of change in modified duration if: U 5 Self- the quiz! 1. the coupon of the bond were 14%, not 12% Modified duration Select was the coupon increases 2. the maturity of the band were 5 years, not 13 years. Modified duration Was maturity decreases