T-Mobil

Definition

T-Mobile is a major telecommunications company that provides wireless voice, messaging, and data services. It operates in multiple countries and is known for its aggressive marketing and innovative service plans.

5 Must Know Facts For Your Next Test

1. T-Mobile's bonds can be affected by changes in interest rates, impacting their market value.
2. The company's credit rating influences the default risk of its bonds.
3. T-Mobile has issued various types of bonds, including corporate bonds with different maturities.
4. Default risk for T-Mobile bonds reflects the company's financial health and ability to meet debt obligations.
5. Interest rate risk for T-Mobile bonds can lead to fluctuations in bond prices as market interest rates change.

Review Questions

• How do changes in interest rates affect the market value of T-Mobile's bonds?
• What role does T-Mobile's credit rating play in assessing the default risk of its bonds?
• Why is it important to consider both interest rate and default risks when investing in T-Mobile’s corporate bonds?

Related terms

Corporate Bonds: Debt securities issued by corporations to raise capital, typically with a fixed interest rate.

Credit Rating: A measure of the creditworthiness of a borrower, often assessed by agencies such as Moody’s or S&P.

Interest Rate Risk: The potential for investment losses due to fluctuations in market interest rates.