1. If Moon Corporation has an increase in sales, what would result in no change in its EBIT margin? Explain in details.
2. A bond currently sells for $1,000 and has a par of $1,000. It was issued two years ago and had a maturity of 10 years. The coupon rate is 7% and the interest payments are made semiannually. What is its YTM? Show your work.