13) The current market value of the assets of Bigelow Inc. is $91 million. The firm has zero-coupon bonds outstanding with a total face value of $45…

13) The current market value of the assets of Bigelow Inc. is $91 million. The firm has zero-coupon bonds outstanding with a total face value of $45 million. These bonds mature in 2 years. The risk-free rate is 4 percent per year compounded continuously. While this company has historically had a standard deviation of assets of 19% per year, due to certain regulatory changes that have just been announced this is expected to increase to 38% per year. Given this new information, what is the change in the market value of equity?

A) +$2.804

B) -$2.804

C) +$1.026

D) -$1.026

E) None of the above