A bond matures and the firm repays the $50 million face value of the debt and issues $50 million of new debt at par with a lower interest rate. Which of the following statements is true?
-The long-term debt ratio increases and times interest earned increases.
-Both the long-term debt ratio and times interest earned remain the same.
-The long-term debt ratio remains the same and times interest earned increases.
-The long-term debt ratio remains the same and times interest earned decreases