Sunburn Sunscreen has a zero coupon bond issue outstanding with $20,000 face value that matures in one year. The current market value of the firms assets is $20,000. The value of the firms asset is going to be either $23,000 or $18,000 next year. The annual risk-free rate is 5% per year.

What is the market value of the firms equity and debt?

	a.	Equity =1714.3, Debt =18285.7
	b.	Equity =2857.1, Debt =17142.9
	c.	Equity =1500.0, Debt =18500.0
	d.	Equity =952.4, Debt =19047.6
	e.	Equity =0, Debt =20000.0