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

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Accounting

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

image 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

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