Consider a Zero-Coupon Bond with a $1,100 Payment in One

Multiple Choice

Consider a zero-coupon bond with a $1,100 payment in one year. Suppose the interest rate decreases from 10% to 8%. The price of this bond:

A) increases from $1,000 to $1,018.
B) increases from $1,000 to $1,375.
C) decreases from $110 to $88.
D) decreases from $1,210 to $1,188.