[单选题]

Use the following data to answer Questions 1 through 8.
  Firm issues a $10 million bond with a 6% coupon rate, 4-year maturity, and annual interest payments when market interest rates are 7%.For analytical purposes, what is the impact on the debt-to-equity ratio if the market rate of interest increases after the bond is issued?

A.An increase.

B.A decrease.

C.No change.

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