The interest rate on a 10 percent, 10-year zero-coupon bond with a $1,000 face value falls from 8 percent to 7 percent. Which of the following is true of the value of the bond? (Round the answer to two decimal places.)

a.The present value of the bond at 8 percent is $508.34.

b.The present value of the bond at 7 percent is $463.19.

c.The maturity value of the bond at 8 percent is $508.34.

d.The maturity value of the bond at 7 percent is $508.34.

e.The present value of the bond at 7 percent is $508.34.