<PAGE> PAGE 1
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000 C000000 0000225318
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
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000 J000000 A
001 A000000 FEDERATED HIGH INCOME BOND FUND, INC.
001 B000000 811-2782
001 C000000 4122881581
002 A000000 FEDERATED INVESTORS TOWER
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008 B000001 A
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010 A000001 FEDERATED SERVICES COMPANY
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011 A000001 FEDERATED SECURITIES CORP.
011 B000001 8-15561
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011 C020001 PA
011 C030001 15222
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<PAGE> PAGE 2
012 A000001 FEDERATED SHAREHOLDER SERVICES COMPANY
012 B000001 84-1869
012 C010001 PITTSBURGH
012 C020001 PA
012 C030001 15222
012 C040001 3779
013 A000001 ERNST & YOUNG LLP
013 B010001 BOSTON
013 B020001 MA
013 B030001 02116
015 A000001 STATE STREET BANK AND TRUST CO.
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02266
015 C040001 8600
015 E010001 X
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015 C020004 NY
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015 C020005 NY
015 C030005 10015
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015 A000006 NATIONSBANK OF NORTH CAROLINA
015 B000006 S
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<PAGE> PAGE 3
015 C030007 15265
015 E010007 X
018 000000 Y
019 A000000 N
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020 A000001 ISI GROUP
020 C000001 9
020 A000002 PRUDENTIAL SECURITIES INC.
020 B000002 22-2347336
020 C000002 3
020 A000003 BERSTEIN SANFORD C. & CO., INC.
020 B000003 13-2625874
020 C000003 1
020 A000004 DONALDSON, LUFKIN & JENRETTE
020 B000004 13-2741729
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 14
022 A000001 SALOMON SMTIH BARNEY INC.
022 B000001 13-1912900
022 C000001 1928456
022 D000001 33685
022 A000002 BEAR STERNS SECURITIES & CO., INC.
022 B000002 13-3299429
022 C000002 942716
022 D000002 39404
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022 B000003 13-2655998
022 C000003 206966
022 D000003 20697
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022 B000004 13-2741729
022 C000004 103196
022 D000004 26817
022 A000005 GOLDMAN SACHS & CO.
022 B000005 13-5108880
022 C000005 112638
022 D000005 12552
022 A000006 CHASE SECURITIES INC.
022 B000006 13-3379014
022 C000006 67718
022 D000006 40650
022 A000007 WARBURG DILLON REED
022 B000007 13-3340045
022 C000007 102070
022 D000007 2285
<PAGE> PAGE 4
022 A000008 BANK OF AMERICA
022 B000008 94-1687665
022 C000008 63963
022 D000008 18495
022 A000009 DEUTSCHE BANK SECURITIES CORP.
022 B000009 13-2730828
022 C000009 45066
022 D000009 31889
022 A000010 CS FIRST BOSTON CORP.
022 B000010 13-5659485
022 C000010 36490
022 D000010 36680
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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 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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SIGNATURE STEPHEN A. KEEN
TITLE GENERAL COUNSEL
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000225318
<NAME> Federated High Income Bond Fund, Inc.
<SERIES>
<NUMBER> 001
<NAME> Federated High Income Bond Fund - Class A
<S> <C>
<PERIOD-TYPE> 12-mos
<FISCAL-YEAR-END> Mar-31-2000
<PERIOD-END> Mar-31-2000
<INVESTMENTS-AT-COST> 2,306,971,593
<INVESTMENTS-AT-VALUE> 1,982,626,443
<RECEIVABLES> 71,719,649
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,054,346,092
<PAYABLE-FOR-SECURITIES> 14,424,686
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7,249,735
<TOTAL-LIABILITIES> 21,674,421
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,407,167,204
<SHARES-COMMON-STOCK> 73,594,147
<SHARES-COMMON-PRIOR> 73,450,072
<ACCUMULATED-NII-CURRENT> 4,098,827
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (54,249,210)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (324,345,150)
<NET-ASSETS> 722,374,533
<DIVIDEND-INCOME> 9,651,034
<INTEREST-INCOME> 236,248,246
<OTHER-INCOME> 0
<EXPENSES-NET> (39,564,755)
<NET-INVESTMENT-INCOME> 206,334,525
<REALIZED-GAINS-CURRENT> (32,954,277)
<APPREC-INCREASE-CURRENT> (291,266,891)
<NET-CHANGE-FROM-OPS> (117,886,643)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (77,804,443)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 34,540,871
<NUMBER-OF-SHARES-REDEEMED> (38,729,565)
<SHARES-REINVESTED> 4,332,769
<NET-CHANGE-IN-ASSETS> (267,832,308)
<ACCUMULATED-NII-PRIOR> 2,040,048
<ACCUMULATED-GAINS-PRIOR> (21,294,933)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17,390,487
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 39,564,755
<AVERAGE-NET-ASSETS> 836,470,580
<PER-SHARE-NAV-BEGIN> 11.300
<PER-SHARE-NII> 0.990
<PER-SHARE-GAIN-APPREC> (1.480)
<PER-SHARE-DIVIDEND> (0.990)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.820
<EXPENSE-RATIO> 1.23
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.000
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000225318
<NAME> Federated High Income Bond Fund, Inc.
<SERIES>
<NUMBER> 002
<NAME> Federated High Income Bond Fund - Class B
<S> <C>
<PERIOD-TYPE> 12-mos
<FISCAL-YEAR-END> Mar-31-2000
<PERIOD-END> Mar-31-2000
<INVESTMENTS-AT-COST> 2,306,971,593
<INVESTMENTS-AT-VALUE> 1,982,626,443
<RECEIVABLES> 71,719,649
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,054,346,092
<PAYABLE-FOR-SECURITIES> 14,424,686
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7,249,735
<TOTAL-LIABILITIES> 21,674,421
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,407,167,204
<SHARES-COMMON-STOCK> 111,276,854
<SHARES-COMMON-PRIOR> 109,784,965
<ACCUMULATED-NII-CURRENT> 4,098,827
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (54,249,210)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (324,345,150)
<NET-ASSETS> 1,091,630,138
<DIVIDEND-INCOME> 9,651,034
<INTEREST-INCOME> 236,248,246
<OTHER-INCOME> 0
<EXPENSES-NET> (39,564,755)
<NET-INVESTMENT-INCOME> 206,334,525
<REALIZED-GAINS-CURRENT> (32,954,277)
<APPREC-INCREASE-CURRENT> (291,266,891)
<NET-CHANGE-FROM-OPS> (117,886,643)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (105,331,838)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 35,181,413
<NUMBER-OF-SHARES-REDEEMED> (38,549,362)
<SHARES-REINVESTED> 4,859,838
<NET-CHANGE-IN-ASSETS> (267,832,308)
<ACCUMULATED-NII-PRIOR> 2,040,048
<ACCUMULATED-GAINS-PRIOR> (21,294,933)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17,390,487
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 39,564,755
<AVERAGE-NET-ASSETS> 1,234,336,882
<PER-SHARE-NAV-BEGIN> 11.290
<PER-SHARE-NII> 0.910
<PER-SHARE-GAIN-APPREC> (1.480)
<PER-SHARE-DIVIDEND> (0.910)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.810
<EXPENSE-RATIO> 1.98
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.000
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000225318
<NAME> Federated High Income Bond Fund, Inc.
<SERIES>
<NUMBER> 003
<NAME> Federated High Income Bond Fund - Class C
<S> <C>
<PERIOD-TYPE> 12-mos
<FISCAL-YEAR-END> Mar-31-2000
<PERIOD-END> Mar-31-2000
<INVESTMENTS-AT-COST> 2,306,971,593
<INVESTMENTS-AT-VALUE> 1,982,626,443
<RECEIVABLES> 71,719,649
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,054,346,092
<PAYABLE-FOR-SECURITIES> 14,424,686
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7,249,735
<TOTAL-LIABILITIES> 21,674,421
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,407,167,204
<SHARES-COMMON-STOCK> 22,288,727
<SHARES-COMMON-PRIOR> 20,416,528
<ACCUMULATED-NII-CURRENT> 4,098,827
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (54,249,210)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (324,345,150)
<NET-ASSETS> 218,667,000
<DIVIDEND-INCOME> 9,651,034
<INTEREST-INCOME> 236,248,246
<OTHER-INCOME> 0
<EXPENSES-NET> (39,564,755)
<NET-INVESTMENT-INCOME> 206,334,525
<REALIZED-GAINS-CURRENT> (32,954,277)
<APPREC-INCREASE-CURRENT> (291,266,891)
<NET-CHANGE-FROM-OPS> (117,886,643)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (21,139,465)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 10,915,826
<NUMBER-OF-SHARES-REDEEMED> (10,254,521)
<SHARES-REINVESTED> 1,210,894
<NET-CHANGE-IN-ASSETS> (267,832,308)
<ACCUMULATED-NII-PRIOR> 2,040,048
<ACCUMULATED-GAINS-PRIOR> (21,294,933)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 17,390,487
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 39,564,755
<AVERAGE-NET-ASSETS> 247,924,176
<PER-SHARE-NAV-BEGIN> 11.300
<PER-SHARE-NII> 0.920
<PER-SHARE-GAIN-APPREC> (1.500)
<PER-SHARE-DIVIDEND> (0.910)
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.810
<EXPENSE-RATIO> 1.98
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.000
</TABLE>
Item 77 C -- Submission of Matters to a Vote of Security Holders
A Special Meeting of Shareholders of Federated High Income Bond Fund was held
on November 18, 1999. The following items, which are required to be reported
under this Item 77C, were approved at the meeting:
The Definitive Proxy Statement for the Special Meeting held on November 18,
1999, was filed with the Securities and Exchange Commission on September 23,
1999, and is incorporated by reference. (File No. 811-2782)
LAST MEETING OF SHAREHOLDERS
A Special Meeting of Fund shareholders was held on November 18, 1999. On
September 7, 1999, the record date for shareholders voting at the meeting,
there were 222,215,946 total outstanding shares. The following items were
considered by shareholders and the results of their voting were as follows:
1. Election of Directors:
Names For Against Abstentions and Withheld
Broker Non-Votes Authority To Vote
Thomas G.
Bigley 141,017,766 3,416,171
Nicholas P.
Constantakis 141,022,072 3,411,865
John F.
Cunningham 141,080,454 3,353,483
Charles F.
Mansfield,
Jr. 141,092,673 3,341,264
John E.
Murray, Jr. 141,002,313 3,431,624
John S.
Walsh 141,053,526 3,380,411
2. To make changes to the Fund's fundamental policies:
a. To amend the Fund's fundamental investment policy regarding
diversification.
For Against Abstentions Broker Non-Votes
88,488,776 3,917,530 7,373,955 44,653,676
b. To amend the Fund's fundamental investment policy regarding
borrowing money and issuing senior securities.
For Against Abstentions Broker Non-Votes
88,442,581 3,963,725 7,373,955 44,653,676
c. To amend the Fund's fundamental investment policy regarding
investments in real estate.
For Against Abstentions Broker Non-Votes
88,458,180 3,948,126 7,373,955 44,653,676
d. To amend the Fund's fundamental investment policy regarding
investments in commodities.
For Against Abstentions Withheld Authority To Vote
88,444,998 3,961,308 7,373,955 44,653,676
e. To amend the Fund's fundamental investment policy regarding
underwriting securities.
For Against Abstentions Broker Non-Votes
88,489,093 3,917,213 7,373,955 44,653,676
f. To amend the Fund's fundamental investment policy regarding
lending by the Fund.
For Against Abstentions Broker Non-Votes
88,441,341 3,964,965 7,373,955 44,653,676
g. To amend the Fund's fundamental investment policy regarding
concentration of the Fund's investments in the securities of
companies in the same industry.
For Against Abstentions Broker Non-Votes
88,489,732 3,916,574 7,373,955 44,653,676
h. To amend, and to make non-fundamental, the Fund's fundamental
investment policy regarding buying securities on margin.
For Against Abstentions Broker Non-Votes
88,461,000 3,945,306 7,373,955 44,653,676
i. To amend, and to make non-fundamental, the Fund's fundamental
investment policy regarding investing in securities of other
investment companies.
For Against Abstentions Broker Non-Votes
88,465,624 3,940,682 7,373,955 44,653,676
j. To make non-fundamental the Fund's fundamental investment policies
relating to investing in fixed-income and corporate debt securities.
For Against Abstentions Broker Non-Votes
88,371,926 4,034,380 7,373,955 44,653,676
k. To make non-fundamental the Fund's fundamental investment policy
relating to investing in equity securities.
For Against Abstentions Broker Non-Votes
88,464,930 3,941,376 7,373,955 44,653,676
l. To amend, and to make non-fundamental, the Fund's fundamental
investment policy relating to temporary investments.
For Against Abstentions Broker Non-Votes
88,492,423 3,913,883 7,373,955 44,653,676
3. To eliminate certain of the Fund's fundamental investment policies:.
a. To remove the Fund's fundamental investment policy regarding
selling securities short.
For Against Abstentions Broker Non-Votes
87,267,538 4,494,946 8,017,777 44,653,676
b. To remove the Fund's fundamental investment policy on investing
in oil, gas and minerals.
For Against Abstentions Broker Non-Votes
87,284,448 4,478,036 8,017,777 44,653,676
c. To remove the Fund's fundamental investment policy on investing
in securities of new issuers.
For Against Abstentions Broker Non-Votes
87,325,263 4,437,221 8,017,777 44,653,676
d. To remove the Fund's fundamental investment policy on investing
in issuers whose securities are owned by officers and Directors.
For Against Abstentions Broker Non-Votes
87,264,856 4,497,628 8,017,777 44,653,676
e. To remove the Fund's fundamental investment policy on investing
for the purpose of exercising control.
For Against Abstentions Broker Non-Votes
87,319,757 4,442,727 8,017,777 44,653,676
f. To remove the Fund's fundamental investment policy on dealing
in puts and calls.
For Against Abstentions Broker Non-Votes
87,269,224 4,493,260 8,017,777 44,653,676
g. To remove the Fund's fundamental investment policy on investing
in foreign securities.
For Against Abstentions Broker Non-Votes
87,300,073 4,462,411 8,017,777 44,653,676
h. To remove the Fund's fundamental investment policy relating to
short-term trading and portfolio turnover.
For Against Abstentions Broker Non-Votes
87,312,443 4,450,041 8,017,777 44,653,676
4. To approve an amendment to and a restatement of the Fund's Articles
of Incorporation to permit the Board of Directors to liquidate assets
of the Fund or a class without seeking shareholder approval to the
extent permitted under Maryland law.
For Against Abstentions Broker Non-Votes
83,285,245 9,087,516 7,407,500 44,653,676
Current as of: 8/18/94
Report of Ernst & Young LLP, Independent Auditors
To the Board of Directors of
Federated High Income Bond Fund, Inc.
In planning and performing our audit of the financial statements of
Federated High Income Bond Fund, Inc. (the "Fund") for the year ended
March 31, 2000, we considered its internal control, including control
activities for safeguarding securities, to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, and 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 judgments by management are required to assess the
expected benefits and related costs of internal control. Generally,
internal controls that are relevant to an audit pertain to the Fund's
objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those internal controls include the safeguarding of assets
against unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control, misstatements
due to error or fraud may occur and not be detected. Also, projections
of any evaluation of internal control to future periods are subject to
the risk that internal control may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or
procedures 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 one or more of the specific internal control components
does not reduce to a relatively low level the risk that error or fraud
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, and its
operation that we consider to be material weaknesses as defined above as
of March 31, 2000.
This report is intended solely for the information and use of the board
of directors and management of Federated High Income Bond Fund, Inc. and
the Securities and Exchange Commission and is not intended to be and
should not be used by anyone other than these specified parties.
ERNST & YOUNG LLP
May 15, 2000