Which items must be disclosed on the confirmation for bonds sold at par?

• A. II and III
• B. I, II, III
• C. I and II
• D. I, II, III, IV

Answer: (C)

When a municipal bond is sold at par, the key disclosures on the confirmation are the par value and the yield to maturity. Since the price equals par, the price itself conveys no extra information, so the investor’s return and the exact principal involved become the essential details to disclose. The par amount shows how much principal is changing hands, and the yield to maturity communicates the investor’s expected return regardless of any coupon quirks, because there is no premium or discount to reflect. Other details that would matter if the sale were above or below par (such as the amount of premium/discount or related adjustments) aren’t required to be highlighted simply because the sale happened at par. That’s why those two items are the ones that must be disclosed.