Coupon payments are periodic interest payments made to bondholders by the issuer of the bond. These payments are typically expressed as a percentage of the bond's face value, known as the coupon rate. For example, if a bond has a face value of $1,000 and a coupon rate of 5%, the bondholder would receive $50 each year until the bond matures. When a bond matures, the issuer repays the bond's face value to the bondholder, concluding the investment. Coupon payments provide a steady income stream for investors, making bonds an attractive option for those seeking regular cash flow, especially in retirement.