The correct answer is d.
The value of a zero coupon bond is the present value
of the lump-sum principal payment. There is no semi-annual
coupon payments, only the principal repayment (of
$1500) at maturity. Therefore the yield of the zero
coupon bond equals the PV of the par value. In this
question, the beginning value of the bond would be
1500 / (1.10^20) = $222.97.