Does not necessarily apply to this bond issue

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Reference no: EM131842949

Baldwin Brothers Sensors (BBS) has a bond issue with the following designation: 11.5S2018

The bond issue has a total face value of $10,000,000.

Which of the following DOES NOT NECESSARILY apply to this bond issue?

BBS owes $1,150,000 in interest each year to the holder(s) of the bonds.

On Dec 31, 2018, $10,000,000 will be taken out of the long term debt account and $10,000,000 would be added to the current debt account of BBS.

BBS can choose to buy back the issue at any time for $10,000,000 plus 1.5% brokerage fee.

The rating of the bond is determined by the Debt-to-Assets ratio of BBS and can change over time

Reference no: EM131842949

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