Final answer:
A municipal bond confirmation includes details such as the issuer's name, par value, purchase price, yield, accrued interest, maturity date, and interest rate. The price paid for the bond may vary with changes in market interest rates.
Step-by-step explanation:
When a municipal bond is purchased, the confirmation statement provides several important details to the buyer. This confirmation typically includes the name of the issuer (such as the city or state), the bond's par value or face value, the price paid, the yield at the time of purchase, and any accrued interest. Additionally, the confirmation discloses the bond's maturity date, which is when the principal amount of the bond will be repaid to the investor, and the interest rate that the bond will pay, usually semiannually.
Regarding the market conditions and the change in interest rates, the price that one pays for the bond can vary. If interest rates have risen since the bond was issued, one might expect to pay less than the bond's face value to achieve a yield that's comparable to current market rates. Conversely, if rates have fallen, the bond's price may be more than the face value.