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Paul, it's too bad your Dad must sell the knife to pay bills, but I do understand.
The 1/2 stands for half an inch. So the 7-4 1/2 means the sheath is for a model #7 with a four and a half inch blade.
Given the condition of the knife I believe $600 would be a reasonable price (just my personal opinion). Others are welcome to chime in.
Cheers
David
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