Frostbite Thermalwear has a zero coupon bond issue outstanding with a face value of $20,000 that matures in one year. The current market value of the firm’s assets is $21,900. The standard deviation of the return on the firm’s assets is 34 percent per year, and the annual riskfree rate is 6 percent per year, compounded continuously. Based on the Black-Scholes model, what is the market value of the firm’s equity and debt? What is the firm’s continuously compounded cost of debt?