1. You buy a TIPS at issue at par for $1,000. The bond has a 3.1% coupon. Inflation turns out to be 2.1%, 3.1%, and 4.1% over the next 3 years. The total annual coupon income you will receive in year 3 is________
2. Suppose that LilyMac Photography has annual sales of $324,000, cost of goods sold of $164,000, average inventories of $4,400, and average accounts receivable of $24,900. Assume that all of LilyMac’s sales are on credit. What will be the firm’s operating cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)