P $14-19$ Convertible bonds; induced conversion; bonds with detachable warrants; disclosure note LO$14-5$

Bradley$-$Link's December $31,2024,$ balance sheet included the following items:

Long$-$Term Llabilities

in millions$)$ $$198$

$49$

$49$

$4$

Note $8$: Bonds $($in part$)$

The $9\mathrm{.}6\%$ bonds were issued in $2011$ at $97\mathrm{.}5$ to yield $10\%.$ Interest is paid semiannually on June $30$ and December $31.$ Each $$1,000$ bond is convertible into $40$ shares of the Company's no par common stock.

The $10\mathrm{.}4\%$ bonds were issued in $2015$ at $102$ to yield $10\%.$ Interest is paid semiannually on June $30$ and December $31.$ Each $$1,000$ bond was issued with $40$ detachable stock warrants, each of which entitles the holder to purchase one share of the Company's no par common stock for $$25,$ beginning $2025.$

On January $3,2025,$ when Bradley$-$Link's common stock had a market price of $$32$ per share, Bradley$-$Link called the convertible bonds to force conversion. Ninety percent were converted; the remainder were acquired at the call price. When the common stock price reached an all$-$time high of $$37$ in December of $2025,40\%$ of the warrants were exercised.