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NorthCo, owed to Alberta Trust $$14$ million under a $10\%$ note due December $31,2020.$ Note was issued at par and interest is paid at the end of year. NorthCo was experiencing severe financial difficulties and asked Alberta Trust to renegotiate the terms of the debt agreement. After negotiation, Alberta Trust agreed to:

Extend the maturity date to December $31,2022.$

Reduce the principal amount to $$13$ million.

Reduce the interest rate to $6\%.$

Answer the following questions using the information given above. Please make sure your final answer$($s$)$ are accurate to the nearest whole number.

a$)$ Determine if this is a settlement or a modification.

$\backslash$table$[[$Present value of old debt,,$],[$Present value of new debt,,$],[$Difference as a percentage of the old debt,,$\%$