Suarez Foods has a bond issue with a face value of $20,000 that is coming due in one year. The current value of the firm's assets is $22,200 but these assets are expected to be worth either $18,000 or $26,000 one year from now. The going rate on one-year T-bills is 3.6 percent. What is the current value of the firm's debt?

Multiple Choice

$2,793

$18,581

$3,619

$16,601

$19,407