What payment is typically required from a bond issuer to bondholders on a regular basis?

The typical payment that a bond issuer makes to bondholders on a regular basis is the coupon payment. This payment represents the interest that the bond issuer has agreed to pay to the bondholders over the life of the bond. It is generally expressed as a percentage of the face value of the bond and is paid at regular intervals, such as annually or semi-annually.

Coupon payments serve as compensation to bondholders for lending their money to the issuer, and they provide a predictable income stream for investors. This is a fundamental characteristic of bonds as fixed-income securities, allowing bondholders to expect scheduled cash flows.

In contrast, other payment types mentioned do not fit the regular payment scheme. For instance, the principal payment refers to the return of the bond’s face value at maturity and is not made on a regular basis during the term of the bond. Maturity payment refers specifically to the full repayment of the principal amount when the bond matures. A premium payment may refer to additional costs associated with purchasing a bond above its face value but does not represent a periodic payment structured in bond agreements.