Geometric Series in Bond Yield

[edmundlo917]

Hey guys!

I have a question with an answer here but I am not sure the steps. It seems that geometric series is used to simply the equation. I hope someone can list in steps in detail, so that I can know how to calculate. Thanks.

 

[Deleted member 4993]

Hey guys!

I have a question with an answer here but I am not sure the steps. It seems that geometric series is used to simply the equation. I hope someone can list in steps in detail, so that I can know how to calculate. Thanks.

View attachment 21754

Please show us what you have tried and exactly where you are stuck.

Please follow the rules of posting in this forum, as enunciated at:

https://www.freemathhelp.com/forum/threads/read-before-posting.109846/#post-486520

Please share your work/thoughts about this problem.

 

[edmundlo917]

I am stucking in this step and dont know how to simply it.

 

[Deleted member 4993]

I am stucking in this step and dont know how to simply it.

View attachment 21758

Do you know the equation for the sum of a geometric series like:

S_n = a + a*r² + a*r³ + ..... a*r^n-1 + a*rⁿ