Consider a $1,000 Par Value 20-Year Zero-Coupon Bond Issued at a Yield

Consider a $1,000 par value 20-year zero-coupon bond issued at a yield to maturity of 10%.If you buy that bond when it is issued and continue to hold the bond as yields decline to 9%, the imputed interest income for the first year of that bond is

A) zero.
B) $14.87.
C) $45.85.
D) $7.44.
E) None of the options