Today we start a series of fun (engagement) questions. Unlike the standard daily questions (or mock exam questions), these are not categorized according to exam topic. Instead, these are meant to give you a quick daily dose of brain candy. Also, we are going to award incentives to participants (yes, this is an experiment. We are simply trying to see if we can add some "fun" to the otherwise dreary task of studying!). Here is today's brain candy: FRM Fun 1. The most important formula for a bond's DV01 (dollar value of an '01) is DV01 = Price * Modified Duration / 10,000. If we assume continuous compounding, both durations (Mod and Mac) conveniently equal the maturity of a zero-coupon bond. In this way, under continuous, DV01 [zero-coupon bond] = Price * Maturity / 10,000. If the yield is 5.0%, the DV01 of the zero-coupon bond is HIGHEST at what maturity? A. 20 years B. 30 years C. 40 years D. Infinite ... is this too easy for you, smarty pants? okay, then try something harder: prove the answer with calculus for any given yield = y. Please answer below, and with any comments!