Bond issuers make regular interest payments to bondholders known as Coupon Payments. These payments are typically made semi-annually or annually and are based on the bond's face value, interest rate, and maturity date. Coupon Payments are a way for bond issuers to compensate bondholders for investing in their bonds. They are an essential aspect of the bond market and play a crucial role in determining a bond's yield. As an investor, understanding Coupon Payments is crucial for making informed decisions when investing in bonds.
