Die Kommilitonen flüstern, der Geheimbund sei mysteriös.

Questions & Answers about Die Kommilitonen flüstern, der Geheimbund sei mysteriös.

Why do we use sei here instead of ist?
We use sei because it is the Konjunktiv I (Present Subjunctive) form of sein (to be) for he/she/it. We use it in reported speech to show we are just repeating what the students are saying, without confirming if it is actually true.
Why is the verb sei in the second position of the clause, instead of at the end?
Because this sentence drops the word dass (that). When you report speech without using dass, the reported part acts like a normal main clause, so the verb takes the second position. If we included dass, the verb would go to the end: ... dass der Geheimbund mysteriös sei.
Does Kommilitonen just mean classmates?
It specifically refers to fellow university or college students. If you are talking about classmates in a primary or high school, you would use die Mitschüler instead.
How is the word Geheimbund formed?
It is a compound noun made from the adjective geheim (secret) and the noun der Bund (alliance, league, or association).

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