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The information that appears on a municipal bond trade confirmation includes various details that are essential for the parties involved in the transaction. Among these pieces of information is the agency or principal capacity, which indicates whether a broker-dealer is acting on behalf of a client (as an agent) or buying or selling for its own account (as a principal).

In the case of municipal bonds, the trade confirmation serves as a record of the transaction and typically includes the name of the broker-dealer handling the trade as well as details about the transaction itself. While the name of the paying agent may be relevant to the bond itself, it is not always included on the trade confirmation. Hence, the emphasis on agency or principal capacity reflects an important aspect of the trade’s execution that is documented in the confirmation.

Also, broker-dealer names are indeed included in the trade confirmation; however, saying that only the agency/principal capacity appears does not provide a complete understanding of what information is actually present on a trade confirmation. Thus, the correct answer acknowledges the significance of agency or principal capacity in the context of the trade confirmation, even though other relevant information may also be present.