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A company issued 5% coupon bonds 2 years ago. Since then interest rates have risen to 6%. Which of the following is most likely if

A company issued 5% coupon bonds 2 years ago. Since then interest rates have risen to 6%. Which of the following is most likely if an analyst uses reported figures in his analysis?

The companys economic liabilities will be overestimated.

The interest coverage ratio will be underestimated.

The interest coverage ratio will be overestimated.

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