You manage a $800M bond portfolio and own a bond with an annual coupon of 35.00 with 5 years to maturity. The bond currently trades at a yield to maturity of 0.50%

1. What is the coupon rate of the bond?

2. What is the price of the bond?

Assume that the bond has a duration of 4.5 years

3. At a YTM of 0.05%, what is the current yield of the bond?

4. What is the bond's modified duration at the current YTM?

5. If you anticipate a downgrade in the bond's rating will result in an increase in the bond's YTM to 1.25%, what is the expected percentage change in the price of the bond?