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Next-generation terrestrial gravitational-wave observatories will detect$\mathcal{O}(10^{5})$ signals from compact binary coalescences every year.These signals can last for several hours in the detectors' sensitivity band andthey will be affected by multiple unresolved sources contributing to aconfusion-noise background in the data. Using an information-matrix formalism,we estimate the impact of the confusion noise power spectral density inbroadening the parameter estimates of a GW170817-like event. If our estimate ofthe confusion noise power spectral density is neglected, we find that masses,spins, and distance are biased in about half of our simulations under realisticcircumstances. The sky localization, while still precise, can be biased in upto $80\%$ of our simulations, potentially posing a problem in follow-upsearches for electromagnetic counterparts.

The impact of confusion noise on golden binary neutron-star events in next-generation terrestrial observatories