As the ground-based gravitational-wave telescopes LIGO, Virgo, and GEO 600
approach the era of first detections, we review the current knowledge of the
coalescence rates and the mass and spin distributions of merging neutron-star
and black-hole binaries. We emphasize the bi-directional connection between
gravitational-wave astronomy and conventional astrophysics. Astrophysical input
will make possible informed decisions about optimal detector configurations and
search techniques. Meanwhile, rate upper limits, detected merger rates, and the
distribution of masses and spins measured by gravitational-wave searches will
constrain astrophysical parameters through comparisons with astrophysical
models. Future developments necessary to the success of gravitational-wave
astronomy are discussed.Comment: Replaced with version accepted by CQG
