I wanted to understand the explanation of how let

I wanted to know the explanation of how the solution of letter b problem have been made; as Im confuse about solving NPP=I (PVIFAkd,n)+Pn(PVIkd,n) Please let me know.

usuruve Prontems.Pinancing inrougn Issuance U Bonds EBC Corporation intends to issue 20-year bonds with a face value of P5, o00,000, Par value per bond is P5, 000 and carries a coupon rate of 9.5%. The bond is expected to sell for 95 percent of par valueThe flotation costs are estimated at P30 per and company's marginal tax rate is 32%. bond the Interest payments are made annually Required : Calculate the following: a) net proceeds per bond, b) before-tax cost of the bond, c) aftertax cost of the bond Solutions a) Net proceeds of a bond sale = Market Price -Flotation Costs = (P5, 000 x 95) - P30 = P 4,750 - P30 = P4,720 b) The before-tax cost of the bond (using trial and error approach; trial at 109%) NPd = 1 (PVIFAkd,n) + Pn (PVIFkd,n) P4, 720 = P475 (8.51356) + P5000(14864) Module