Sunburn Sunscreen has a zero coupon bond issue outstanding with a $$10,000$ face

value that matures in one year. The current market value of the firm's assets is $$10,700.$

The standard deviation of the return on the firm's assets is $39$ percent per year, and the

annual risk$-$free rate is $7$ percent per year, compounded continuously.

Based on the Black$-$Scholes model, what is the market value of the firm's equity?

Based on the Black$-$Scholes model, what is the market value of the firm's debt?