Assuming all else is unchanged, which of the following statements about the market price of zero-coupon bonds is TRUE?

Select one:

a. The market price declines as the time to maturity approaches.

b. The market price increases as the time to maturity approaches.

c. The market price does not change as the time to maturity approaches.

d. The market price does not change in response to changes in the market interest rates because a zero-coupon bond does not pay coupon interest.

e. Until the maturity date, a zero-coupon bond has no market value because it does not pay coupon interest.