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