His investment involves taking out a loan of $600 and using the entire amount to buy a $440 16% par value n-year bond with semi-annual coupons. The loan is repaid over n years by regular annual payments of $100 at the end of each year.

1. (a) Assume both the loan and the bond have the same annual effective yield rate i. Calculate i.

2. (b) At the end of m(m < n) years, immediately after the bonds coupon and the loan repayment are made, Daniel sells the bond at price P. He immediately uses P to completely repay the loan, and after the repayment, he still has $238. If his investment realizes an effective yield rate 15% per year, calculate m (rounded to the nearest integer).