Which will have the higher price (as a percentage of the face value), a three-year zero-coupon bond or a three-year 4% coupon bond?

A. The zero-coupon bond, because a pure discount bond pays higher interest payments than a 4% coupon bond.

B. The 4% coupon bond, because the 4% coupon bond pays interest payments; whereas the zero-coupon bond is a pure discount bond.

C. Since they are both have a 3-year maturity, they are equal in price.

D. The zero-coupon bond, because the zero-coupon bond pays interest payments.