convertible loan note Mock Exam MCQ

sry, have tried this a lot of times but still failed

Q:on 1 nov 2013 Andris issued $12mil convertible loan notes that carry a nominal interest rate of 5% per annum. The loan notes are redeemable on 31 october 2016 at par or they can be converted into equity shares. a similar loan note without the conversion option would have required Andris to pay an interest rate of 8.6%

The present value of $1 receivable at the end of the year, based on discount rates of 5% and 8.6% can be taken to be:

5%
year 1= 0.95
year 2=0.91
year 3=0.86

8.6%
year 1=0.92
year2=0.85
year3=0.78

how would the convertible loan appear in Andris’ statement of financial position on initial recognition? $xxx E(quity) $xxxNCL(liability)

A:$59400E $11940600NCL

how to reach the answer, my attempt

PV of 3 yr interest in arrear = 12mil*0.05*(0.92+0.85+0.78)=600,000*2.55=$1,530,000
PV of loan note redeemed at yr 3= 12mil * 0.78=$9,360,000
Total liability component = 1530000+9360000=$10,890,000

Thus equity balance of $12mil= $1,110,000

Year 1 interest expense $10,890,000*8.6%=$936,540
936,540+10,890,000-600,000=11,226,540(Liablity)

year 2 interest expense 11226540*8.6%=965482.44
965482.44+11226540-600000=11,592,022.44 (liability)

year 3 interest expense 11,592,022.44= 996913.93
996913.93+11592.022.44-600000=aprox $12,000,000 (liablity)

i can’t find the way to reach the answer. please help