More ricardian quilvalence problem!?

What does the following statement means?

'' Value of the tax cut = value of government bond issued =present value of the extra payments discounted at the rate faced by the government.''

I get the ''tax cut = gov bond'' bit. Just want to know if the ''present value of extra payments'' means the ''present value of future income to bondholders''?

And MOST importantly, what does ''discount at the rate faced by government'' means?

Simple short explanations please.

the opportunity cost of the money, or the interest rate that would be paid to the government if they had the additional tax revenue and loaned it out in the loanable funds market

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