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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 9
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SIGNATURE NICHOLAS DALMASO
TITLE ATTORNEY
PricewaterhouseCoopers LLP
200 East Randolph Drive
Chicago IL 60601
Telephone (312) 540 1500
To the Shareholders and
Board of Trustees of
the Van Kampen Corporate Bond Fund
In planning and performing our audit of the financial statements of Van Kampen
Corporate Bond Fund (the "Fund") for the year ended August 31, 1998, we
considered its internal control, including control activities for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statments and to comply with the
requirements of Form N-SAR, not to provide assurance on internal control.
The management of the Fund is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgements by
management are required to assess the expected benefits and related costs of
control activities. Generally, control activities that are relevant to an audit
pertain to the entity's objective of preparing financial statements for external
puposes that are fairly presented in conformity with generally accepted
accounting principles. Those control activities include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of any
specific internal control components does not reduce to a relatively low level
the risk that errors or irregularties in amounts that would be material in
relation to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving internal control,
including control activities for safeguarding securities, that we consider to be
material weaknesses as defined above as of August 31, 1998.
This report is intended solely for the information and use of management and the
Board of Trustees of the Fund and the Securities Exchange Commission.
PRICEWATERHOUSECOOPERS LLP
Chicago, Illinois
October 2, 1998
<TABLE>
<CAPTION>
Underwriting# Underwriting Purchased From Amount of shares % of Underwriting Date of Purchase
Purchased
<S> <C> <C> <C> <C> <C>
1 Cablevision Systems, Inc. Merrill Lynch 1,250,000 0.250% 12/05/97
2 Cablevision Systems, Inc. Bear Stearns 1,500,000 0.500% 02/03/98
3 Yorkshire Power Financial Merrill Lynch 4,000,000 0.615% 02/19/98
4 Beckman Coulter Merrill Lynch 1,500,000 0.375% 02/25/98
5 R&B Falcon Corp. First Boston 1,000,000 0.091% 04/08/98
6 Tenet Healthcare Corporation Donaldson, Lufkin 6,500,000 0.542% 05/08/98
& Jenrette
7 Owens-Illinois, Inc. Salomon Smith Barney 1,250,000 0.227% 05/14/98
8 Tyco International Group, S.A. J.P. Morgan 6,000,000 0.300% 06/04/98
Notes
9 Federal Mogul Corp. First Boston 5,000,000 0.500% 06/25/98
</TABLE>
Other Firms participating in Underwriting
Underwriting for #1
- -------------------
Bear, Stearns & Co., Inc.
Merrill Lynch, Inc.
Morgan Stanley & Co., Inc.
Underwriting for #2
- -------------------
Bear, Stearns & Co., Inc.
Merrill Lynch, Inc.
Morgan Stanley & Co., Inc.
Salomon Brothers Inc.
<PAGE>
Underwriting for #3
- -------------------
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Salomon Brothers Inc.
J.P. Morgan Securities Inc.
Morgan Stanley & Co., Incorporated
UBS Securities LLC
Underwriting for #4
- -------------------
Merrill Lynch & Co.
Salomon Smith Barney
Citicorp Securities, Inc.
Credit Suisse First Boston
Morgan Stanley Dean Witter
BancAmerica Robertson Stephens
First Chicago Capital Markets, Inc.
Goldman, Sachs & Co.
Underwriting for #5
- -------------------
Credit Suisse First Boston Corporation
Chase Securities Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
Morgan Stanley & co. Incorporated
Underwriting for #6
- -------------------
Donaldson, Lufkin & Jenrette
Merrill Lynch & Co.
J.P. Morgan & Co.
Morgan Stanfey Dean Witter
Salomon Smith Barney
Deutsche Morgan Grenfell
BancAmerica Robertson Stephens
<PAGE>
Underwriting for #7
- -------------------
Morgan Stanley Dean Witter
Credit Suisse First Boston
First Chicago Capital Markets, Inc.
Goldman, Sach & Co.
Lehman Brothers
Underwriting for #8
- -------------------
J.P. Morgan Securities Inc.
Morgan Stanley & Co. Incorporated
Lehman Brothers Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Credit Suisse First Boston Corporation
Donaldson, Lufkin & Jenrette Securities Corporation
BT Alex Brown Incorporated
First Chicago Capital Markets, Inc.
NationsBanc Montgomery Securities LLC
ABN AMRO Incorporated
Credit Lyonnais Securities (USA) Inc.
First Union Capital Markets Corp.
Scotia Capital Markets (USA) Inc.
Bear, Stearns & Co. Inc.
Citicorp Securities, Inc.
PaineWebber Incorporated
UBS Securities LLC
BancAmerica Robertson Stephens
BNY Capital Markets, Inc.
Commerzbank Capital Markets Corporation
Underwriting for #9
- -------------------
Chase Securities Inc.
Bear, Stearns & Co. Inc.
Credit Suisse First Boston Corporation
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Morgan Stanley & Co. Incorporated
BNY Capital Markets, Inc.
BancAmerica Robertson Stephens
Credit Lyonnais Securities (USA) Inc.
First Chicago Capital Markets, Inc.
First Union Capital Markets Corp., a division of Wheat First Securities, Inc.
Scotia Capital Markets (USA) Inc.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
<F1> This item relates to the Fund on a composite
basis and not on a class basis
</LEGEND>
<SERIES>
<NUMBER> 11
<NAME> Corporate Bond Class A
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 232,029,748 <F1>
<INVESTMENTS-AT-VALUE> 245,372,545 <F1>
<RECEIVABLES> 6,926,278 <F1>
<ASSETS-OTHER> 0 <F1>
<OTHER-ITEMS-ASSETS> 51,994 <F1>
<TOTAL-ASSETS> 252,350,817 <F1>
<PAYABLE-FOR-SECURITIES> 0 <F1>
<SENIOR-LONG-TERM-DEBT> 0 <F1>
<OTHER-ITEMS-LIABILITIES> 2,760,259 <F1>
<TOTAL-LIABILITIES> 2,760,259 <F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 190,399,189
<SHARES-COMMON-STOCK> 26,467,270
<SHARES-COMMON-PRIOR> 23,103,531
<ACCUMULATED-NII-CURRENT> (386,213)<F1>
<OVERDISTRIBUTION-NII> 0 <F1>
<ACCUMULATED-NET-GAINS> (15,753,988)<F1>
<OVERDISTRIBUTION-GAINS> 0 <F1>
<ACCUM-APPREC-OR-DEPREC> 13,342,797 <F1>
<NET-ASSETS> 185,963,933
<DIVIDEND-INCOME> 0 <F1>
<INTEREST-INCOME> 16,782,210 <F1>
<OTHER-INCOME> 88,000 <F1>
<EXPENSES-NET> (2,814,386)<F1>
<NET-INVESTMENT-INCOME> 14,055,824 <F1>
<REALIZED-GAINS-CURRENT> 897,823 <F1>
<APPREC-INCREASE-CURRENT> 911,483 <F1>
<NET-CHANGE-FROM-OPS> 15,865,130 <F1>
<EQUALIZATION> 0 <F1>
<DISTRIBUTIONS-OF-INCOME> (11,934,964)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,628,952
<NUMBER-OF-SHARES-REDEEMED> (5,430,218)
<SHARES-REINVESTED> 1,165,005
<NET-CHANGE-IN-ASSETS> 25,012,663
<ACCUMULATED-NII-PRIOR> 377,622 <F1>
<ACCUMULATED-GAINS-PRIOR> (23,441,237)<F1>
<OVERDISTRIB-NII-PRIOR> 0 <F1>
<OVERDIST-NET-GAINS-PRIOR> 0 <F1>
<GROSS-ADVISORY-FEES> 1,090,017 <F1>
<INTEREST-EXPENSE> 0 <F1>
<GROSS-EXPENSE> 2,814,386 <F1>
<AVERAGE-NET-ASSETS> 176,808,330
<PER-SHARE-NAV-BEGIN> 6.967
<PER-SHARE-NII> 0.454
<PER-SHARE-GAIN-APPREC> 0.085
<PER-SHARE-DIVIDEND> (0.480)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.026
<EXPENSE-RATIO> 1.08
<AVG-DEBT-OUTSTANDING> 0 <F1>
<AVG-DEBT-PER-SHARE> 0 <F1>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
<F1> This item relates to the Fund on a composite
basis and not on a class basis
</LEGEND>
<SERIES>
<NUMBER> 12
<NAME> Corporate Bond Class B
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 232,029,748 <F1>
<INVESTMENTS-AT-VALUE> 245,372,545 <F1>
<RECEIVABLES> 6,926,278 <F1>
<ASSETS-OTHER> 0 <F1>
<OTHER-ITEMS-ASSETS> 51,994 <F1>
<TOTAL-ASSETS> 252,350,817 <F1>
<PAYABLE-FOR-SECURITIES> 0 <F1>
<SENIOR-LONG-TERM-DEBT> 0 <F1>
<OTHER-ITEMS-LIABILITIES> 2,760,259 <F1>
<TOTAL-LIABILITIES> 2,760,259 <F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 52,350,550
<SHARES-COMMON-STOCK> 7,674,616
<SHARES-COMMON-PRIOR> 4,884,808
<ACCUMULATED-NII-CURRENT> (386,213)<F1>
<OVERDISTRIBUTION-NII> 0 <F1>
<ACCUMULATED-NET-GAINS> (15,753,988)<F1>
<OVERDISTRIBUTION-GAINS> 0 <F1>
<ACCUM-APPREC-OR-DEPREC> 13,342,797 <F1>
<NET-ASSETS> 53,809,578
<DIVIDEND-INCOME> 0 <F1>
<INTEREST-INCOME> 16,782,210 <F1>
<OTHER-INCOME> 88,000 <F1>
<EXPENSES-NET> (2,814,386)<F1>
<NET-INVESTMENT-INCOME> 14,055,824 <F1>
<REALIZED-GAINS-CURRENT> 897,823 <F1>
<APPREC-INCREASE-CURRENT> 911,483 <F1>
<NET-CHANGE-FROM-OPS> 15,865,130 <F1>
<EQUALIZATION> 0 <F1>
<DISTRIBUTIONS-OF-INCOME> (2,562,029)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,450,037
<NUMBER-OF-SHARES-REDEEMED> (1,897,082)
<SHARES-REINVESTED> 236,853
<NET-CHANGE-IN-ASSETS> 19,834,014
<ACCUMULATED-NII-PRIOR> 377,622 <F1>
<ACCUMULATED-GAINS-PRIOR> (23,441,237)<F1>
<OVERDISTRIB-NII-PRIOR> 0 <F1>
<OVERDIST-NET-GAINS-PRIOR> 0 <F1>
<GROSS-ADVISORY-FEES> 1,090,017 <F1>
<INTEREST-EXPENSE> 0 <F1>
<GROSS-EXPENSE> 2,814,386 <F1>
<AVERAGE-NET-ASSETS> 42,830,833
<PER-SHARE-NAV-BEGIN> 6.955
<PER-SHARE-NII> 0.412
<PER-SHARE-GAIN-APPREC> 0.071
<PER-SHARE-DIVIDEND> (0.427)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.011
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0 <F1>
<AVG-DEBT-PER-SHARE> 0 <F1>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
<F1> This item relates to the Fund on a composite
basis and not on a class basis
</LEGEND>
<SERIES>
<NUMBER> 13
<NAME> Corporate Bond Class C
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-START> SEP-01-1997
<PERIOD-END> AUG-31-1998
<INVESTMENTS-AT-COST> 232,029,748 <F1>
<INVESTMENTS-AT-VALUE> 245,372,545 <F1>
<RECEIVABLES> 6,926,278 <F1>
<ASSETS-OTHER> 0 <F1>
<OTHER-ITEMS-ASSETS> 51,994 <F1>
<TOTAL-ASSETS> 252,350,817 <F1>
<PAYABLE-FOR-SECURITIES> 0 <F1>
<SENIOR-LONG-TERM-DEBT> 0 <F1>
<OTHER-ITEMS-LIABILITIES> 2,760,259 <F1>
<TOTAL-LIABILITIES> 2,760,259 <F1>
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9,638,223
<SHARES-COMMON-STOCK> 1,400,251
<SHARES-COMMON-PRIOR> 733,842
<ACCUMULATED-NII-CURRENT> (386,213)<F1>
<OVERDISTRIBUTION-NII> 0 <F1>
<ACCUMULATED-NET-GAINS> (15,753,988)<F1>
<OVERDISTRIBUTION-GAINS> 0 <F1>
<ACCUM-APPREC-OR-DEPREC> 13,342,797 <F1>
<NET-ASSETS> 9,817,047
<DIVIDEND-INCOME> 0 <F1>
<INTEREST-INCOME> 16,782,210 <F1>
<OTHER-INCOME> 88,000 <F1>
<EXPENSES-NET> (2,814,386)<F1>
<NET-INVESTMENT-INCOME> 14,055,824 <F1>
<REALIZED-GAINS-CURRENT> 897,823 <F1>
<APPREC-INCREASE-CURRENT> 911,483 <F1>
<NET-CHANGE-FROM-OPS> 15,865,130 <F1>
<EQUALIZATION> 0 <F1>
<DISTRIBUTIONS-OF-INCOME> (367,093)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 971,515
<NUMBER-OF-SHARES-REDEEMED> (331,118)
<SHARES-REINVESTED> 26,012
<NET-CHANGE-IN-ASSETS> 4,712,715
<ACCUMULATED-NII-PRIOR> 377,622 <F1>
<ACCUMULATED-GAINS-PRIOR> (23,441,237)<F1>
<OVERDISTRIB-NII-PRIOR> 0 <F1>
<OVERDIST-NET-GAINS-PRIOR> 0 <F1>
<GROSS-ADVISORY-FEES> 1,090,017 <F1>
<INTEREST-EXPENSE> 0 <F1>
<GROSS-EXPENSE> 2,814,386 <F1>
<AVERAGE-NET-ASSETS> 6,176,263
<PER-SHARE-NAV-BEGIN> 6.956
<PER-SHARE-NII> 0.419
<PER-SHARE-GAIN-APPREC> 0.063
<PER-SHARE-DIVIDEND> (0.427)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 7.011
<EXPENSE-RATIO> 1.85
<AVG-DEBT-OUTSTANDING> 0 <F1>
<AVG-DEBT-PER-SHARE> 0 <F1>
</TABLE>
