What do the semi-annual coupons of a corporate bond refer to?

The semi-annual coupons of a corporate bond refer specifically to the interest payments that are made to bondholders. When corporations issue bonds, they typically promise to pay bondholders a fixed interest rate, known as the coupon rate, on a regular schedule. This schedule often includes payments every six months, hence the term "semi-annual." These coupon payments are a key feature of bonds and serve as a source of income for investors, allowing them to earn returns on their investment in addition to the eventual return of the principal amount at maturity.

The other options do not accurately describe what the semi-annual coupons represent. For instance, dividends pertain to the distribution of earnings to shareholders, not bondholders. Principal repayments refer to the return of the initial investment made by bondholders, which occurs at maturity but is distinct from the ongoing interest payments made during the life of the bond. Fees associated with bond issuance may be incurred but are separate from the actual interest payments made to bondholders. Understanding these distinctions is crucial for recognizing the financial dynamics involved in corporate bond investments.