Accounting of a zerocoupon bond subsequent, properly, company

firat

A company sells a longterm, zerocoupon bond. The company’s cash flow from operations in subsequent years, compared to what it would have been if the company had issued debt at par for the same proceeds, will be:
A) overstated.
B) understated.
C) properly stated

OmarAdnan

do not understand… in your choices Choice C is “Properly stated”, but you seem to be saying “overstated” in your answer as well.