Rackin Pinion Corporation's assets are currently worth $$1,030.$

In one year, they will be worth either $$1,000$ or $$1,270.$ The

risk$-$free interest rate is $3\mathrm{.}7$ percent. Suppose the company has

an outstanding debt issue with a face value of $$1,000.$

a$.$ What is the value of the equity?

b$.$ What is the value of the debt? The interest rate on the debt?

Input Area:

$($Use cells A$6$ to B$10$ from the given information to complete this question.$)$

Output Area: