A firm has a single zero-coupon bond issue outstanding with a face value of $10 million. It matures in five years. The current market value of the firms assets is $13 million. The volatility of the return on the firms assets is 70% per year. The risk-free rate is 6%, continuously compounded.

What is the continuously compounded cost of debt (choose the closest one)?

		87.33%
		17.65%
		11.54%
		15.93%