Bond A has a price of $2,750$ at an annual effective yield rate of $6\%.$ The modified duration of the bond is $12.$

Bond $B$ has a price of $2,000$ at an annual effective yield rate of $6\%.$ The modified duration of the bond is $Mod{D}_B.$

If the annual yield rate drops by $2\%,$ both estimated bond prices increase by the same dollar amount using the first$-$order

Macaulay approximation.

Calculate $Mod{D}_B.$

$13\mathrm{.}5$

$14\mathrm{.}2$

$15\mathrm{.}8$

$16\mathrm{.}5$

$18\mathrm{.}1$

Answer is NOT $16\mathrm{.}5$