... 1 Chapter 8Bond Valuation and RiskFinancial Markets and Institutions, 7e, Jeff MaduraCopyright ... percent. What is the appropriate market price of the bond?1,102.80$$75.40$1,027.40bond of 40.75$ )075 4(.000,1$)(000,1$principal of 40.027,1$)274.10(100$)(payments coupon of 30%,930%,9=+===========PVPVIFPVPVIFACPVnknk ... and reduce the probability that the firm will default on its debt payments- )( ECONfRP ∆=∆ 2 Chapter OutlineBond valuation processRelationships between coupon rate, required return,...