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

Coupon	Yield to Maturity	Maturity	Macaulay Duration
8%	8%	14	8.66 years

Please answer a-c and 1 and 2 drop down. Help is greatly appreciated, thanks!

The Clarence Corporation has issued bonds that pay semiannually with the following characteristics: 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 | c. Identify the direction of change in modified duration if: 1. the coupon of the bond were 6%, not 8%. Modified duration as the coupon decreases. considers only the final cash flow, whil 2. the maturity of the bond were 7 years, not 14 years. Modified duration ] as maturity decreases. icludes other factors