Question: Sunburn Sunscreen has a zero coupon bond issue outstanding with a $10000 face value that matures in one year. The current market value of the

Sunburn Sunscreen has a zero coupon bond issue outstanding with a $10000 face value that matures in one year. The current market value of the firms assets is $10600. The standard deviation of the return on the firms assets is 32 percent per year, and the annual risk-free rate is 7 percent per year, compounded continuously. what are the market values of the firms equity and debt based on the Black-Scholes model? Use risk-free bond -put option to find out the value of debt.

***please show how to get values and do not use excel***

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