... increases to 9 percent, the new price of the bond is $1 ,080 .61. What is this bond’s bond price elasticity?53.0%7%7%924.273,1$24.273,1$61 .080 ,1$ in change percent in change percent−=−−==kPpe ... and reduce the probability that the firm will default on its debt payments- )( ECONfRP ∆=∆ 2 Chapter OutlineBond valuation processRelationships between coupon rate, required return, ... 1 Chapter 8Bond Valuation and RiskFinancial Markets and Institutions, 7e, Jeff MaduraCopyright...