... increases to percent, the new price of the bond is $1 ,080 .61 What is ?this bond’s bond price elasticity percent change in P p = percent change in k e $1 ,080 .61 − $1,273.24 $1,273.24 = 9% − % 7% = −0.53 ... Chapter Outline Bond valuation process Relationships between coupon rate, required return,...