Kenneth was supposed to make a payment of $4,250 in 1 year and another payment of $1,000 in 8 years to Maroon Inc. as part of a payment plan. Instead, she is trying to reach an agreement with the company where she would settle both payments in 5 years. Assume that money is worth 3.92% compounded semi-annually.

a. Calculate the equivalent value of the $4,250 payment and the $1,000 payment today.

b. Calculate the size of the payment required in 5 years to settle the amount.