Question

stealth bank is holding $4 million in reserves, $9 million in government bonds and $9.6 million in low risk mortgage loans. out of the $20 million in customers' deposits, stealth holds $13.1 million in the form of certificates of deposit. what is stealth bank's net worth in millions of dollars?

Answer 1

Stealth bank is holding $4 million in reserves and $9 million in government bonds. $2.6 million is the stealth bank's net worth in millions of dollars.

($4mil + $9mil + $9.6mil) - $20mil = $2.6 million net worth.

For the Stealth Bank, net worth is equal to $2.6 million; that is, $22.6 million in assets minus $20 million in liabilities.

A government bond is a debt security issued by a government to support government spending and scores. Government bonds can pay periodic interest payments called pasteboard payments. Government bonds issued by public governments are frequently considered low-threat investments since the issuing government backs them.

Government bonds issued by civil governments are among the safest investments around, frequently carrying a threat-free rate of return. still, because of their lower threat, they also carry fairly lower yields.

a bondholder invests$,000( called face value) into a 10- time government bond with a 10 periodic pasteboard; the government would pay the bondholder 10 of the$,000 each time. At the maturity date the government would give back the original$,000.

Learn more about government bonds here: brainly.com/question/7292819

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