Abstract: The ground-based gravitational-wave telescopes LIGO and Virgo approach the era of first detections. In this talk, I will review the current knowledge of the coalescence rates and parameter distributions of merging neutron-star and black-hole binaries. I 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. I report on ongoing efforts to develop a framework for converting gravitational-wave observations into improved constraints on astrophysical parameters and discuss future developments necessary to the success of gravitational-wave astronomy.