Which is the most accurate statement regarding zero-coupon bonds?

Zero-coupon bonds (also called deep discount bonds) do not pay periodic interest (coupons). Instead, they are issued at a price below their face value and redeemed at face value on maturity the difference being the investor's return. This return is in the form of capital appreciation, not periodic income. Option B is the opposite of reality. Option C is wrong zero-coupon bonds are highly sensitive to interest rate changes (they have the highest duration among bonds of the same maturity). Option D is wrong for the same reason. Option E is wrong RBI issues zero-coupon bonds (e.g., oil bonds).