L = lead time in Pays Sa Cost of Placing Order. Ds Annual Demand. H = Annual Per-Unit Carrying cost. Q: Order quantity setup. Alo old Holding Annual Ordering Cost = Sx Annual Carrying Cost = txo Total Cost a [sx 8] + [txe Qopt 2 x S xD H T = Working days Expected Number of Orders: N= Q Working days Expected Time between Orders ROP = d x L Quantity Discount Model working days. Which of the statements CORRECT? Alebe bond that has a coupon rate of 10 will sell at a discount if the required return for bonds of similar risk is 8%. The price of a discount bond will increase over time, assuming that the bond's yield to maturity remains constant For a preform its debentures are likely to have a lower yield to maturity than its mortgage bonds. Whenlarge forms are in financial distress, they are almost always liquidated, whereas smaller firms are generally reorganized. The total return on bond during a give year consists only of the coupon interest payments received