The Clarence Corporation has issued bonds that pay semiannually with the following characteristics: Coupon Yield to Maturity Maturity Macaulay Duration 8% 8% 12 7.93 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 band's sensitivity to changes in interest rates? vis a better measure of the bond's sensitivity to changes in interest rates as Select considers only the final cash flow, while includes other factors a. Identify the direction of change in modified duration is 1. the coupon of the bond were 12%, not 8% Modified duration Select as the coupon increases 2. the maturity of the bond were 4 years, not 12 years Modified duration Select as maturity decreases