The Clarence Corporation has issued bonds that pay semiannually with the following characteristics:

Coupon	Yield to Maturity	Maturity	Macaulay Duration
10%	10%	15	8.07 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.

B. What is a better measure when calculating the bond's sensitivity to changes in interest rates? As _______ considers only the final cash flow, while ___________ includes other factors.

C. Identify the direction of change in modified duration if:

1. the coupon of the bond were 12%, not 10%.

2. the maturity of the bond were 7 years, not 15 years.