Yeah.. I think you've got it right.
That's weird that they have you knit a bunch of stitches and then bind off at the end of the row -- then you live yarn is at the end of the binded off stitches and can't be used to knit your remaining stitches. So what you'll need to do is rejoin the yarn and continue your knitting.
Typically when they have you bind off... I've seen it that you 1st bind off, then do you knitting --that way the live yarn is exactly where you need it.
Good luck! It's an adorable halter top