A coupon or coupon payment amount represents the annual interest paid to bondholders. This is often paid annually or semiannually (6 monthly). The interest rate paid is expressed as a percentage of the face value and is paid to the bondholder from the issue date until maturity.
For investors to calculate the coupon rate, the annual payments are divided by the face value of the bond. As an example, a $2000 bond with a coupon of 7% pays $140 a year. If the interest payment is semiannual, the investor will receive a payment of $70 twice a year until maturity.