单选题 Reynaldo and Apple are training a new analyst, Norah Spears. They ask Spears what she knows about duration and convexity. Spears replies with four statements:

Statement 1:	Modified duration is a better measure than effective duration for bonds with embedded options.
Statement 2:	The convexity adjustment corrects for the error embedded in the duration.
Statement 3:	Modified duration ignores the negative convexity of a callable bond.
Statement 4:	Convexity of option-free bonds is always added to duration to modify the errors in calculating price volatility.

Which of the following regarding Spears' statements is TRUE? A. Spears is correct with respect to all four statements. B. Spears is correct with respect to Statement 2, but incorrect with respect to Statement 4. C. Spears is correct with respect to Statement 3, but incorrect with respect to Statement 1.