MERRILL LYNCH MUNICIPAL BOND FUND, INC.
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Supplement Dated May 5, 1998 to the
Prospectus Dated October 7, 1997
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Effective immediately, the prospectus of Merrill Lynch Municipal
Bond Fund, Inc. is amended as follows:
Page 27, "Indexed and Inverse Floating Obligations"
The final sentence of this paragraph is amended to read as follows:
The Fund may not invest in such illiquid obligations if such
investments, together with other illiquid investments, would
exceed 15% of the Fund's net assets.
Page 27, "Investment Restrictions"
The second sentence of this paragraph is amended to read as
follows:
One such restriction prohibits the Fund from entering into a
repurchase agreement if, as a result thereof more that 15% of
the total assets of any Portfolio (taken at market value at
the time of each investment) would be subject to repurchase
agreements maturing in more than seven days.
CODE #10051-1097ALL-1