the answer is provided but part A still does not make sense to me. please show all steps how to solve. I don't understand why we're using the numbers 35 and 1000. I also really don't understand what (PVIFA R%54) AND (PVIF R%54) , how we get this or how this is calculated. if a financial calculator is needed for this part, please explain how it's used for this problem. please go step by step, thank you !

tax cost of debt? If the tax rate is 35 percent, what 7. Calculating Cost of Debt (LO2) Pearce's Cricket Farm issued a 30-year, 7 percent semiannual bond 3 years ago. The bond currently sells for 93 percent of its face value The company's tax rate is 35 percent. Assume the par value of the bond is $1,000. a. What is the pre-tax cost of debt? b. What is the after-tax cost of debt? c. Which is more relevant, the pre-tax or the after-tax cost of debt? Why? the hook value (L03) 2 The pretax cost of debt is the YTM of the company's bonds, so: Po = $930 = $35(PVIFAR%54)+ $1,000(PVIFR%54) R= 3.81% YTM = 2 x 3.81% = 7.62% The aftertax cost of debt is: Rp = 0.0762(1 0.35) = 0.04953 or 4.953% The after-tax rate is more relevant because that is the actual cost to the company