Find the Sum of the Infinite Geometric Series $\sum _ { n = 0 } ^ { \infty } \left( - \frac { 1 } { 8 } \right) ^ { n }$

question 393

Multiple Choice

Find the sum of the infinite geometric series. $\sum _ { n = 0 } ^ { \infty } \left( - \frac { 1 } { 8 } \right) ^ { n }$

• A) \(\frac { 8 } { 9 }\)
• B) \(- \frac { 8 } { 9 }\)
• C) \(- \frac { 9 } { 8 }\)
• D) \(\frac { 9 } { 10 }\)
• E) \(\frac { 9 } { 8 }\)

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Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, considering all interest payments and the repayment of principal.

Par Value

The face value or nominal value of a bond, share of stock, or other financial instrument, usually representing its value upon issuance.

Total Rate Of Return

The overall amount of profit or loss generated by an investment over a given period, including both capital gains and income, expressed as a percentage of the initial investment.

Zero-Coupon Bond

A debt security that does not pay periodic interest and is sold at a discount from its face value, with its return coming at the bond's maturity.