if a bank has 100Mn loan, 200Mn deposit, 10Mn capital and 100Mn investment in Government bond, the deposit promises a yearly return of 4%  for the next 30 years and the bond promises YTM of 0.5% . How would you createthe balance sheet of the bank? Would you incorporate the future value of the loans on the balance sheet or only the nominal values assuming that you look at the balance sheet today

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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if a bank has 100Mn loan, 200Mn deposit, 10Mn capital and 100Mn investment in Government bond, the deposit promises a yearly return of 4%  for the next 30 years and the bond promises YTM of 0.5% . How would you createthe balance sheet of the bank? Would you incorporate the future value of the loans on the balance sheet or only the nominal values assuming that you look at the balance sheet today

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