soddy1979

Let's say bond is issued at par $100,000, then your interest expense should be $9,000 instead of $9,228. So CFO is understated as a result of issuing a premium bond( you're paying more interst expense) Or simply as CFF is overstated, either CFO or CFI needs to be understated in order to balance. As we know paying interest expense or paying dividend is operating activities, we know CFO is understated.
Hope it makes sense and correct me please if I am wrong.