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 $10,600. The standard deviation of the return on the firm's assets is 32 percent per year, and the annual risk-free rate is 7 percent per year, compounded continuously. What is the market value of the firm's debt based on the Black-Scholes model? (Round your answer to the nearest $100.) $6,400$6,900$8,600$8,800$9,200 QUESTION 17 A convertible bond has a face value of $5,000 and a conversion price of $80. The bond has a 6 percent coupon, pays interest semi-annually, and matures in 12 years. Similar bonds are yielding 7.5 percent. The current price of the stock is $42 per share. What is the conversion value of this bond (i.e., the value of your holdings after you convert the bond to equity)? $1,680$2,575$2,625$4,651$5,000