3.333 QUESTION 16 Cavalier, Inc. issued fixed-rate debt at par value when the market rate of interest was 7%. The market rate of interest has since declined to 5% If an analyst were to use the carrying amount of the debt as shown on the balance sheet to analyze the firm's financial position, then the analyst most likely would a. overestimate Cavaller's interest coverage ratio b. neither overestimate nor underestimate Cavalier's economic abilities coverestimate Cavalier's economic liabilities Bunderestimate Cavalier's economic abilities