What is coupon rate redemption?

Coupon rate redemption refers to the process by which bondholders receive periodic interest payments, known as coupon payments, from the issuer of the bond. The coupon rate is the fixed annual interest rate that determines these payments, expressed as a percentage of the bond's face value. Redemption can also refer to the bond's maturity, when the principal amount is returned to the bondholder. Overall, coupon rate redemption is a key aspect of fixed-income investments, providing investors with regular income until maturity.