Katherine owes the following obligations:

A. 5,000,000 due in 4 years, and;

B. 600,000 due in 6 years with the accumulated interest from today at 14% compounded quarterly.

If the man would want to replace these obligations by a payment of 500,000 on the second year and another payment at the end of 5 1/2 years, how much s the second payment if money is worth 12% compounded semi-annually?

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