Find the Indicated Term of the Sequence $\frac { 1 } { 9 } , \frac { 5 } { 9 } , \frac { 25 } { 9 } , \ldots$

question 191

Multiple Choice

Find the indicated term of the sequence.
-The sixth term of the geometric sequence $\frac { 1 } { 9 } , \frac { 5 } { 9 } , \frac { 25 } { 9 } , \ldots$

• A) \(\frac { 3125 } { 9 }\)
• B) \(\frac { 10 } { 3 }\)
• C) \(\frac { 25 } { 9 }\)
• D) \(\frac { 15625 } { 9 }\)

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Definitions:

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The cost associated with each separate element (debt, equity, etc.) that comprises the overall cost of capital for a firm.

Noncallable Bond

A type of bond that cannot be redeemed by the issuer before its maturity date, thus offering investors protection against early repayment risks.

Annual Coupon

The yearly interest payment made to bondholders, expressed as a percentage of the bond's face value.

Bond-Yield-Plus-Risk-Premium

A method of estimating the cost of equity by adding a risk premium to the observed yield of a company’s long-term debt.