<PAGE> PAGE 1
000 B000000 08/31/95
000 C000000 225997
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 VANGUARD MUNICIPAL BOND FUND, INC.
001 B000000 811-2687
001 C000000 6106691000
002 A000000 100 VANGUARD BOULEVARD
002 B000000 MALVERN
002 C000000 PA
002 D010000 19355
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 7
007 C010100 1
007 C020100 SHORT-TERM PORTFOLIO
007 C030100 N
007 C010200 2
007 C020200 INTERMEDIATE-TERM PORTFOLIO
007 C030200 N
007 C010300 3
007 C020300 LONG-TERM PORTFOLIO
007 C030300 N
007 C010400 4
007 C020400 HIGH YIELD PORTFOLIO
007 C030400 N
007 C010500 5
007 C020500 MONEY MARKET PORTFOLIO
007 C030500 N
007 C010600 6
007 C020600 INSURED LONG-TERM PORTFOLIO
007 C030600 N
007 C010700 7
007 C020700 LIMITED-TERM PORTFOLIO
007 C030700 N
007 C010800 8
007 C010900 9
007 C011000 10
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 90
019 C00AA00 VANGUARDGR
020 C000001 0
<PAGE> PAGE 2
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 GOLDMAN SACHS & CO.
022 B000001 13-5108880
022 C000001 4083245
022 D000001 900550
022 A000002 MERRILL LYNCH PIERCE FENNER & SMITH
022 B000002 13-5674085
022 C000002 3345991
022 D000002 589906
022 A000003 MONEY MARKET PORTFOLIO/VANGUARD MUNI BOND FD
022 B000003 23-2471394
022 C000003 1152947
022 D000003 1576128
022 A000004 LEHMAN BROTHERS INC.
022 B000004 13-2518466
022 C000004 2424064
022 D000004 229175
022 A000005 SMITH BARNEY INC.
022 B000005 13-1912900
022 C000005 1171142
022 D000005 585545
022 A000006 INTERMEDIATE-TERM PORTFOLIO/VANGUARD MUNI BD
022 B000006 23-2471389
022 C000006 1009214
022 D000006 710536
022 A000007 MORGAN STANLEY & CO., INC.
022 B000007 13-2655998
022 C000007 872563
022 D000007 669860
022 A000008 BEAR STEARNS & CO.
022 B000008 13-3299429
022 C000008 732323
022 D000008 714847
022 A000009 J.P. MORGAN SECURITIES INC.
022 B000009 13-3224016
022 C000009 907403
022 D000009 498755
022 A000010 CALIFORNIA MONEY MARKET PORTFOLIO
022 B000010 23-2444928
022 C000010 575800
022 D000010 777429
023 C000000 24745334
<PAGE> PAGE 3
023 D000000 13901089
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 ICI MUTUAL INSURANCE COMPANY
080 C00AA00 150000
081 A00AA00 Y
081 B00AA00 108
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
028 A010100 61597
028 A020100 4004
028 A030100 0
028 A040100 61114
028 B010100 45304
028 B020100 3982
028 B030100 0
028 B040100 83547
028 C010100 49830
028 C020100 4100
028 C030100 0
028 C040100 61998
028 D010100 56671
028 D020100 3907
028 D030100 0
028 D040100 63219
028 E010100 54823
028 E020100 3965
<PAGE> PAGE 4
028 E030100 0
028 E040100 61300
028 F010100 60449
028 F020100 4038
028 F030100 0
028 F040100 59545
028 G010100 328674
028 G020100 23996
028 G030100 0
028 G040100 390723
028 H000100 0
062 A000100 Y
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
062 E000100 55.6
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 44.5
062 P000100 0.0
062 Q000100 0.0
062 R000100 -0.1
063 A000100 0
063 B000100 1.2
064 A000100 N
071 A000100 375848
071 B000100 539701
071 C000100 1165746
071 D000100 32
072 A000100 12
072 B000100 60460
072 C000100 0
072 D000100 0
072 E000100 0
072 F000100 195
072 G000100 1547
072 H000100 0
072 I000100 772
072 J000100 42
072 K000100 0
072 L000100 53
072 M000100 5
072 N000100 0
072 O000100 124
<PAGE> PAGE 5
072 P000100 0
072 Q000100 0
072 R000100 7
072 S000100 0
072 T000100 441
072 U000100 0
072 V000100 6
072 W000100 0
072 X000100 3192
072 Y000100 60
072 Z000100 57328
072AA000100 260
072BB000100 472
072CC010100 11658
072CC020100 0
072DD010100 57328
072DD020100 0
072EE000100 97
073 A010100 0.6000
073 A020100 0.0000
073 B000100 0.0010
073 C000100 0.0000
074 A000100 200
074 B000100 0
074 C000100 802386
074 D000100 641244
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 185
074 J000100 11
074 K000100 0
074 L000100 26850
074 M000100 0
074 N000100 1470876
074 O000100 25194
074 P000100 0
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 3673
074 S000100 0
074 T000100 1442009
074 U010100 92489
074 U020100 0
074 V010100 15.59
074 V020100 0.00
074 W000100 0.0000
074 X000100 26098
<PAGE> PAGE 6
074 Y000100 0
075 A000100 0
075 B000100 1481203
076 000100 0.00
028 A010200 154762
028 A020200 16788
028 A030200 0
028 A040200 85472
028 B010200 110045
028 B020200 16737
028 B030200 0
028 B040200 86913
028 C010200 129972
028 C020200 17461
028 C030200 0
028 C040200 117521
028 D010200 106313
028 D020200 16784
028 D030200 0
028 D040200 106883
028 E010200 101189
028 E020200 17368
028 E030200 0
028 E040200 93766
028 F010200 165599
028 F020200 17554
028 F030200 0
028 F040200 86655
028 G010200 767880
028 G020200 102692
028 G030200 0
028 G040200 577210
028 H000200 0
062 A000200 Y
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 15.6
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 84.7
062 P000200 0.0
062 Q000200 0.0
062 R000200 -0.3
<PAGE> PAGE 7
063 A000200 0
063 B000200 7.6
064 A000200 N
071 A000200 610596
071 B000200 535950
071 C000200 4387884
071 D000200 12
072 A000200 12
072 B000200 279268
072 C000200 0
072 D000200 0
072 E000200 0
072 F000200 646
072 G000200 5551
072 H000200 0
072 I000200 2887
072 J000200 130
072 K000200 0
072 L000200 202
072 M000200 17
072 N000200 0
072 O000200 408
072 P000200 0
072 Q000200 0
072 R000200 11
072 S000200 0
072 T000200 1144
072 U000200 0
072 V000200 31
072 W000200 0
072 X000200 11027
072 Y000200 370
072 Z000200 268611
072AA000200 10925
072BB000200 7177
072CC010200 104438
072CC020200 0
072DD010200 268611
072DD020200 0
072EE000200 57697
073 A010200 0.6860
073 A020200 0.0000
073 B000200 0.1580
073 C000200 0.0000
074 A000200 272
074 B000200 0
074 C000200 850526
074 D000200 4615242
074 E000200 0
074 F000200 0
074 G000200 0
<PAGE> PAGE 8
074 H000200 0
074 I000200 684
074 J000200 18303
074 K000200 0
074 L000200 77586
074 M000200 0
074 N000200 5562613
074 O000200 99611
074 P000200 0
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 14741
074 S000200 0
074 T000200 5448261
074 U010200 414551
074 U020200 0
074 V010200 13.14
074 V020200 0.00
074 W000200 0.0000
074 X000200 111110
074 Y000200 0
075 A000200 0
075 B000200 5043599
076 000200 0.00
028 A010300 17454
028 A020300 3359
028 A030300 0
028 A040300 25116
028 B010300 13092
028 B020300 3274
028 B030300 0
028 B040300 16092
028 C010300 16293
028 C020300 3369
028 C030300 0
028 C040300 16266
028 D010300 14011
028 D020300 3228
028 D030300 0
028 D040300 23857
028 E010300 17038
028 E020300 3371
028 E030300 0
028 E040300 16623
028 F010300 18103
028 F020300 3387
028 F030300 0
028 F040300 12516
028 G010300 95991
<PAGE> PAGE 9
028 G020300 19988
028 G030300 0
028 G040300 110470
028 H000300 0
062 A000300 Y
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 9.6
062 F000300 0.0
062 G000300 0.0
062 H000300 0.0
062 I000300 0.0
062 J000300 0.0
062 K000300 0.0
062 L000300 0.0
062 M000300 0.0
062 N000300 0.0
062 O000300 90.0
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.4
063 A000300 0
063 B000300 13.7
064 A000300 N
071 A000300 319471
071 B000300 331787
071 C000300 905362
071 D000300 35
072 A000300 12
072 B000300 60434
072 C000300 0
072 D000300 0
072 E000300 0
072 F000300 128
072 G000300 1254
072 H000300 0
072 I000300 518
072 J000300 29
072 K000300 0
072 L000300 34
072 M000300 4
072 N000300 0
072 O000300 84
072 P000300 0
072 Q000300 0
072 R000300 7
072 S000300 0
072 T000300 192
072 U000300 0
072 V000300 2
<PAGE> PAGE 10
072 W000300 0
072 X000300 2252
072 Y000300 139
072 Z000300 58321
072AA000300 7782
072BB000300 6990
072CC010300 25220
072CC020300 0
072DD010300 58321
072DD020300 0
072EE000300 12264
073 A010300 0.6080
073 A020300 0.0000
073 B000300 0.1560
073 C000300 0.0000
074 A000300 152
074 B000300 0
074 C000300 101247
074 D000300 948261
074 E000300 0
074 F000300 0
074 G000300 0
074 H000300 0
074 I000300 133
074 J000300 1772
074 K000300 0
074 L000300 15986
074 M000300 0
074 N000300 1067551
074 O000300 10436
074 P000300 0
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 2995
074 S000300 0
074 T000300 1054120
074 U010300 98691
074 U020300 0
074 V010300 10.68
074 V020300 0.00
074 W000300 0.0000
074 X000300 20412
074 Y000300 0
075 A000300 0
075 B000300 997434
076 000300 0.00
028 A010400 43404
028 A020400 6182
028 A030400 0
<PAGE> PAGE 11
028 A040400 38906
028 B010400 38062
028 B020400 6069
028 B030400 0
028 B040400 30936
028 C010400 46759
028 C020400 6188
028 C030400 0
028 C040400 50637
028 D010400 33282
028 D020400 5909
028 D030400 0
028 D040400 35871
028 E010400 49113
028 E020400 6140
028 E030400 0
028 E040400 30619
028 F010400 41360
028 F020400 6254
028 F030400 0
028 F040400 26225
028 G010400 251980
028 G020400 36742
028 G030400 0
028 G040400 213194
028 H000400 0
062 A000400 Y
062 B000400 0.0
062 C000400 0.0
062 D000400 0.0
062 E000400 11.4
062 F000400 0.0
062 G000400 0.0
062 H000400 0.0
062 I000400 0.0
062 J000400 0.0
062 K000400 0.0
062 L000400 0.0
062 M000400 0.0
062 N000400 0.0
062 O000400 91.0
062 P000400 0.0
062 Q000400 0.0
062 R000400 -2.4
063 A000400 0
063 B000400 14.3
064 A000400 N
071 A000400 519486
071 B000400 544290
071 C000400 1560012
071 D000400 33
<PAGE> PAGE 12
072 A000400 12
072 B000400 110054
072 C000400 0
072 D000400 0
072 E000400 0
072 F000400 223
072 G000400 1871
072 H000400 0
072 I000400 1055
072 J000400 49
072 K000400 0
072 L000400 77
072 M000400 6
072 N000400 0
072 O000400 145
072 P000400 0
072 Q000400 0
072 R000400 8
072 S000400 0
072 T000400 359
072 U000400 0
072 V000400 7
072 W000400 0
072 X000400 3800
072 Y000400 125
072 Z000400 106379
072AA000400 6946
072BB000400 20722
072CC010400 46507
072CC020400 0
072DD010400 106379
072DD020400 0
072EE000400 27681
073 A010400 0.6250
073 A020400 0.0000
073 B000400 0.1730
073 C000400 0.0000
074 A000400 147
074 B000400 0
074 C000400 211455
074 D000400 1697575
074 E000400 0
074 F000400 0
074 G000400 0
074 H000400 0
074 I000400 235
074 J000400 0
074 K000400 0
074 L000400 28774
074 M000400 0
074 N000400 1938186
<PAGE> PAGE 13
074 O000400 66453
074 P000400 0
074 Q000400 0
074 R010400 0
074 R020400 0
074 R030400 0
074 R040400 6568
074 S000400 0
074 T000400 1865165
074 U010400 178912
074 U020400 0
074 V010400 10.43
074 V020400 0.00
074 W000400 0.0000
074 X000400 40419
074 Y000400 0
075 A000400 0
075 B000400 1740182
076 000400 0.00
028 A010500 395624
028 A020500 12115
028 A030500 0
028 A040500 373214
028 B010500 374131
028 B020500 12448
028 B030500 0
028 B040500 462733
028 C010500 452004
028 C020500 13139
028 C030500 0
028 C040500 358881
028 D010500 382041
028 D020500 11421
028 D030500 0
028 D040500 447497
028 E010500 352742
028 E020500 11296
028 E030500 0
028 E040500 343411
028 F010500 351512
028 F020500 11699
028 F030500 0
028 F040500 362105
028 G010500 2308054
028 G020500 72118
028 G030500 0
028 G040500 2347841
028 H000500 0
062 A000500 Y
062 B000500 0.0
062 C000500 0.0
<PAGE> PAGE 14
062 D000500 0.0
062 E000500 100.3
062 F000500 0.0
062 G000500 0.0
062 H000500 0.0
062 I000500 0.0
062 J000500 0.0
062 K000500 0.0
062 L000500 0.0
062 M000500 0.0
062 N000500 0.0
062 O000500 0.0
062 P000500 0.0
062 Q000500 0.0
062 R000500 -0.3
063 A000500 66
063 B000500 0.0
064 A000500 N
071 A000500 0
071 B000500 0
071 C000500 0
071 D000500 0
072 A000500 12
072 B000500 158291
072 C000500 0
072 D000500 0
072 E000500 0
072 F000500 553
072 G000500 4182
072 H000500 0
072 I000500 2446
072 J000500 133
072 K000500 0
072 L000500 108
072 M000500 14
072 N000500 0
072 O000500 342
072 P000500 0
072 Q000500 0
072 R000500 10
072 S000500 0
072 T000500 1236
072 U000500 0
072 V000500 9
072 W000500 0
072 X000500 9033
072 Y000500 133
072 Z000500 149391
072AA000500 67
072BB000500 217
072CC010500 0
<PAGE> PAGE 15
072CC020500 0
072DD010500 149391
072DD020500 0
072EE000500 0
073 A010500 0.0360
073 A020500 0.0000
073 B000500 0.0000
073 C000500 0.0000
074 A000500 162
074 B000500 0
074 C000500 4176928
074 D000500 0
074 E000500 0
074 F000500 0
074 G000500 0
074 H000500 0
074 I000500 535
074 J000500 11
074 K000500 0
074 L000500 40029
074 M000500 0
074 N000500 4217665
074 O000500 34203
074 P000500 0
074 Q000500 0
074 R010500 0
074 R020500 0
074 R030500 0
074 R040500 17767
074 S000500 0
074 T000500 4165695
074 U010500 4166374
074 U020500 0
074 V010500 1.00
074 V020500 0.00
074 W000500 0.9998
074 X000500 62603
074 Y000500 0
075 A000500 4195792
075 B000500 0
076 000500 0.00
028 A010600 24430
028 A020600 5792
028 A030600 0
028 A040600 32848
028 B010600 25022
028 B020600 5640
028 B030600 0
028 B040600 22731
028 C010600 36038
028 C020600 5781
<PAGE> PAGE 16
028 C030600 0
028 C040600 38519
028 D010600 23352
028 D020600 5483
028 D030600 0
028 D040600 27817
028 E010600 22546
028 E020600 5596
028 E030600 0
028 E040600 29036
028 F010600 22426
028 F020600 5641
028 F030600 0
028 F040600 22591
028 G010600 153814
028 G020600 33933
028 G030600 0
028 G040600 173542
028 H000600 0
062 A000600 Y
062 B000600 0.0
062 C000600 0.0
062 D000600 0.0
062 E000600 11.3
062 F000600 0.0
062 G000600 0.0
062 H000600 0.0
062 I000600 0.0
062 J000600 0.0
062 K000600 0.0
062 L000600 0.0
062 M000600 0.0
062 N000600 0.0
062 O000600 88.7
062 P000600 0.0
062 Q000600 0.0
062 R000600 0.0
063 A000600 0
063 B000600 13.5
064 A000600 Y
064 B000600 N
071 A000600 119317
071 B000600 244384
071 C000600 1736318
071 D000600 7
072 A000600 12
072 B000600 112250
072 C000600 0
072 D000600 0
072 E000600 0
072 F000600 242
<PAGE> PAGE 17
072 G000600 2261
072 H000600 0
072 I000600 965
072 J000600 53
072 K000600 0
072 L000600 74
072 M000600 6
072 N000600 0
072 O000600 151
072 P000600 0
072 Q000600 0
072 R000600 8
072 S000600 0
072 T000600 348
072 U000600 0
072 V000600 6
072 W000600 0
072 X000600 4114
072 Y000600 129
072 Z000600 108265
072AA000600 7311
072BB000600 7753
072CC010600 46692
072CC020600 0
072DD010600 108265
072DD020600 0
072EE000600 26395
073 A010600 0.6840
073 A020600 0.0000
073 B000600 0.1730
073 C000600 0.0000
074 A000600 140
074 B000600 0
074 C000600 219662
074 D000600 1716422
074 E000600 0
074 F000600 0
074 G000600 0
074 H000600 0
074 I000600 246
074 J000600 23
074 K000600 0
074 L000600 29246
074 M000600 0
074 N000600 1965739
074 O000600 24256
074 P000600 0
074 Q000600 0
074 R010600 0
074 R020600 0
074 R030600 0
<PAGE> PAGE 18
074 R040600 6175
074 S000600 0
074 T000600 1935308
074 U010600 159697
074 U020600 0
074 V010600 12.12
074 V020600 0.00
074 W000600 0.0000
074 X000600 37873
074 Y000600 0
075 A000600 0
075 B000600 1869521
076 000600 0.00
028 A010700 47497
028 A020700 4962
028 A030700 0
028 A040700 54245
028 B010700 40002
028 B020700 4900
028 B030700 0
028 B040700 57431
028 C010700 54870
028 C020700 5092
028 C030700 0
028 C040700 58988
028 D010700 63047
028 D020700 4963
028 D030700 0
028 D040700 50480
028 E010700 41083
028 E020700 5099
028 E030700 0
028 E040700 60241
028 F010700 47493
028 F020700 5136
028 F030700 0
028 F040700 44209
028 G010700 293992
028 G020700 30152
028 G030700 0
028 G040700 325594
028 H000700 0
062 A000700 Y
062 B000700 0.0
062 C000700 0.0
062 D000700 0.0
062 E000700 19.2
062 F000700 0.0
062 G000700 0.0
062 H000700 0.0
062 I000700 0.0
<PAGE> PAGE 19
062 J000700 0.0
062 K000700 0.0
062 L000700 0.0
062 M000700 0.0
062 N000700 0.0
062 O000700 81.6
062 P000700 0.0
062 Q000700 0.0
062 R000700 -0.8
063 A000700 0
063 B000700 3.0
064 A000700 N
071 A000700 559413
071 B000700 547339
071 C000700 1573160
071 D000700 35
072 A000700 12
072 B000700 79551
072 C000700 0
072 D000700 0
072 E000700 0
072 F000700 223
072 G000700 1738
072 H000700 0
072 I000700 965
072 J000700 48
072 K000700 0
072 L000700 69
072 M000700 6
072 N000700 0
072 O000700 136
072 P000700 0
072 Q000700 0
072 R000700 8
072 S000700 0
072 T000700 494
072 U000700 0
072 V000700 12
072 W000700 0
072 X000700 3699
072 Y000700 133
072 Z000700 75985
072AA000700 4753
072BB000700 8131
072CC010700 93753
072CC020700 0
072DD010700 75985
072DD020700 0
072EE000700 0
073 A010700 0.4760
073 A020700 0.0000
<PAGE> PAGE 20
073 B000700 0.0000
073 C000700 0.0000
074 A000700 240
074 B000700 0
074 C000700 319569
074 D000700 1361699
074 E000700 0
074 F000700 0
074 G000700 0
074 H000700 0
074 I000700 213
074 J000700 6625
074 K000700 0
074 L000700 27483
074 M000700 0
074 N000700 1715829
074 O000700 42364
074 P000700 0
074 Q000700 0
074 R010700 0
074 R020700 0
074 R030700 0
074 R040700 4906
074 S000700 0
074 T000700 1668559
074 U010700 155810
074 U020700 0
074 V010700 10.71
074 V020700 0.00
074 W000700 0.0000
074 X000700 34165
074 Y000700 0
075 A000700 0
075 B000700 1688883
076 000700 0.00
SIGNATURE GARY P. SOURA
TITLE
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUND, INC.
<SERIES>
<NUMBER> 001
<NAME> SHORT-TERM PORTFOLIO
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-01-1994
<PERIOD-END> AUG-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1435123
<INVESTMENTS-AT-VALUE> 1443630
<RECEIVABLES> 26861
<ASSETS-OTHER> 385
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1470876
<PAYABLE-FOR-SECURITIES> 25194
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3673
<TOTAL-LIABILITIES> 28867
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1433714
<SHARES-COMMON-STOCK> 92489
<SHARES-COMMON-PRIOR> 100925
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (212)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8507
<NET-ASSETS> 1442009
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 60460
<OTHER-INCOME> 0
<EXPENSES-NET> 3132
<NET-INVESTMENT-INCOME> 57328
<REALIZED-GAINS-CURRENT> (212)
<APPREC-INCREASE-CURRENT> 11658
<NET-CHANGE-FROM-OPS> 68774
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 57328
<DISTRIBUTIONS-OF-GAINS> 97
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 48700
<NUMBER-OF-SHARES-REDEEMED> 60206
<SHARES-REINVESTED> 3070
<NET-CHANGE-IN-ASSETS> (118552)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 97
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 195
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3192
<AVERAGE-NET-ASSETS> 1481203
<PER-SHARE-NAV-BEGIN> 15.46
<PER-SHARE-NII> 0.600
<PER-SHARE-GAIN-APPREC> 0.131
<PER-SHARE-DIVIDEND> 0.600
<PER-SHARE-DISTRIBUTIONS> 0.001
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.59
<EXPENSE-RATIO> 0.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUND, INC.
<SERIES>
<NUMBER> 002
<NAME> INTERMEDIATE-TERM PORTFOLIO
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-01-1994
<PERIOD-END> AUG-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 5208122
<INVESTMENTS-AT-VALUE> 5465768
<RECEIVABLES> 95889
<ASSETS-OTHER> 956
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5562613
<PAYABLE-FOR-SECURITIES> 99611
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 14741
<TOTAL-LIABILITIES> 114352
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5215236
<SHARES-COMMON-STOCK> 414551
<SHARES-COMMON-PRIOR> 389309
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 27471
<ACCUM-APPREC-OR-DEPREC> 260496
<NET-ASSETS> 5448261
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 279268
<OTHER-INCOME> 0
<EXPENSES-NET> 10657
<NET-INVESTMENT-INCOME> 268611
<REALIZED-GAINS-CURRENT> 3748
<APPREC-INCREASE-CURRENT> 104438
<NET-CHANGE-FROM-OPS> 376797
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 268611
<DISTRIBUTIONS-OF-GAINS> 57697
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 120215
<NUMBER-OF-SHARES-REDEEMED> 114445
<SHARES-REINVESTED> 19472
<NET-CHANGE-IN-ASSETS> 380649
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 26478
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 646
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11027
<AVERAGE-NET-ASSETS> 5043599
<PER-SHARE-NAV-BEGIN> 13.02
<PER-SHARE-NII> 0.686
<PER-SHARE-GAIN-APPREC> 0.278
<PER-SHARE-DIVIDEND> 0.686
<PER-SHARE-DISTRIBUTIONS> 0.158
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.14
<EXPENSE-RATIO> 0.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUND, INC.
<SERIES>
<NUMBER> 003
<NAME> LONG-TERM PORTFOLIO
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-01-1994
<PERIOD-END> AUG-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 987305
<INVESTMENTS-AT-VALUE> 1049508
<RECEIVABLES> 17758
<ASSETS-OTHER> 285
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1067551
<PAYABLE-FOR-SECURITIES> 10436
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2995
<TOTAL-LIABILITIES> 13431
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1006692
<SHARES-COMMON-STOCK> 98691
<SHARES-COMMON-PRIOR> 94595
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 14754
<ACCUM-APPREC-OR-DEPREC> 62182
<NET-ASSETS> 1054120
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 60434
<OTHER-INCOME> 0
<EXPENSES-NET> 2113
<NET-INVESTMENT-INCOME> 58321
<REALIZED-GAINS-CURRENT> 792
<APPREC-INCREASE-CURRENT> 25220
<NET-CHANGE-FROM-OPS> 84333
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 58321
<DISTRIBUTIONS-OF-GAINS> 14264
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 28855
<NUMBER-OF-SHARES-REDEEMED> 29758
<SHARES-REINVESTED> 4999
<NET-CHANGE-IN-ASSETS> 53182
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 1282
<GROSS-ADVISORY-FEES> 128
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2252
<AVERAGE-NET-ASSETS> 997434
<PER-SHARE-NAV-BEGIN> 10.58
<PER-SHARE-NII> 0.608
<PER-SHARE-GAIN-APPREC> 0.256
<PER-SHARE-DIVIDEND> 0.608
<PER-SHARE-DISTRIBUTIONS> 0.156
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.68
<EXPENSE-RATIO> 0.23
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUND, INC.
<SERIES>
<NUMBER> 004
<NAME> HIGH YIELD PORTFOLIO
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-01-1994
<PERIOD-END> AUG-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1832893
<INVESTMENTS-AT-VALUE> 1909030
<RECEIVABLES> 28774
<ASSETS-OTHER> 382
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1938186
<PAYABLE-FOR-SECURITIES> 66453
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6568
<TOTAL-LIABILITIES> 73021
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1813639
<SHARES-COMMON-STOCK> 178912
<SHARES-COMMON-PRIOR> 171435
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (24359)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 75885
<NET-ASSETS> 1865165
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 110054
<OTHER-INCOME> 0
<EXPENSES-NET> 3675
<NET-INVESTMENT-INCOME> 106379
<REALIZED-GAINS-CURRENT> (13776)
<APPREC-INCREASE-CURRENT> 46507
<NET-CHANGE-FROM-OPS> 139110
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 106379
<DISTRIBUTIONS-OF-GAINS> 27681
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 53728
<NUMBER-OF-SHARES-REDEEMED> 55774
<SHARES-REINVESTED> 9523
<NET-CHANGE-IN-ASSETS> 84036
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 17098
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 223
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3800
<AVERAGE-NET-ASSETS> 1740182
<PER-SHARE-NAV-BEGIN> 10.39
<PER-SHARE-NII> 0.625
<PER-SHARE-GAIN-APPREC> 0.213
<PER-SHARE-DIVIDEND> 0.625
<PER-SHARE-DISTRIBUTIONS> 0.173
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.43
<EXPENSE-RATIO> 0.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUND, INC.
<SERIES>
<NUMBER> 005
<NAME> MONEY MARKET PORTFOLIO
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-01-1994
<PERIOD-END> AUG-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 4176928
<INVESTMENTS-AT-VALUE> 4176928
<RECEIVABLES> 40040
<ASSETS-OTHER> 697
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4217665
<PAYABLE-FOR-SECURITIES> 34203
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 17767
<TOTAL-LIABILITIES> 51970
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4166389
<SHARES-COMMON-STOCK> 4166374
<SHARES-COMMON-PRIOR> 4164154
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (694)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 4165695
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 158291
<OTHER-INCOME> 0
<EXPENSES-NET> 8900
<NET-INVESTMENT-INCOME> 149391
<REALIZED-GAINS-CURRENT> (150)
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 149241
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 149391
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5115579
<NUMBER-OF-SHARES-REDEEMED> 5250720
<SHARES-REINVESTED> 137361
<NET-CHANGE-IN-ASSETS> 2070
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (554)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 553
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9033
<AVERAGE-NET-ASSETS> 4195792
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.036
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.036
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUND, INC.
<SERIES>
<NUMBER> 006
<NAME> INSURED LONG-TERM PORTFOLIO
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-01-1994
<PERIOD-END> AUG-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1810570
<INVESTMENTS-AT-VALUE> 1936084
<RECEIVABLES> 29269
<ASSETS-OTHER> 386
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1965739
<PAYABLE-FOR-SECURITIES> 24256
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6175
<TOTAL-LIABILITIES> 30431
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1828655
<SHARES-COMMON-STOCK> 159697
<SHARES-COMMON-PRIOR> 161782
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 16417
<ACCUM-APPREC-OR-DEPREC> 123070
<NET-ASSETS> 1935308
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 112250
<OTHER-INCOME> 0
<EXPENSES-NET> 3985
<NET-INVESTMENT-INCOME> 108265
<REALIZED-GAINS-CURRENT> (442)
<APPREC-INCREASE-CURRENT> 46692
<NET-CHANGE-FROM-OPS> 154515
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 108265
<DISTRIBUTIONS-OF-GAINS> 26395
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 26844
<NUMBER-OF-SHARES-REDEEMED> 36608
<SHARES-REINVESTED> 7678
<NET-CHANGE-IN-ASSETS> (2709)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 10556
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 242
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4114
<AVERAGE-NET-ASSETS> 1869521
<PER-SHARE-NAV-BEGIN> 11.98
<PER-SHARE-NII> 0.684
<PER-SHARE-GAIN-APPREC> 0.313
<PER-SHARE-DIVIDEND> 0.684
<PER-SHARE-DISTRIBUTIONS> 0.173
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.12
<EXPENSE-RATIO> 0.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUND, INC.
<SERIES>
<NUMBER> 007
<NAME> LIMITED-TERM PORTFOLIO
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-01-1994
<PERIOD-END> AUG-31-1995
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1658138
<INVESTMENTS-AT-VALUE> 1681268
<RECEIVABLES> 31108
<ASSETS-OTHER> 453
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1715829
<PAYABLE-FOR-SECURITIES> 42364
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4906
<TOTAL-LIABILITIES> 47270
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1651348
<SHARES-COMMON-STOCK> 155810
<SHARES-COMMON-PRIOR> 171586
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (5919)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 23130
<NET-ASSETS> 1668559
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 79551
<OTHER-INCOME> 0
<EXPENSES-NET> 3566
<NET-INVESTMENT-INCOME> 75985
<REALIZED-GAINS-CURRENT> (3378)
<APPREC-INCREASE-CURRENT> 21146
<NET-CHANGE-FROM-OPS> 93753
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 75985
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 62583
<NUMBER-OF-SHARES-REDEEMED> 84035
<SHARES-REINVESTED> 5677
<NET-CHANGE-IN-ASSETS> (145761)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2541)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 223
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3699
<AVERAGE-NET-ASSETS> 1688883
<PER-SHARE-NAV-BEGIN> 10.57
<PER-SHARE-NII> 0.476
<PER-SHARE-GAIN-APPREC> 0.140
<PER-SHARE-DIVIDEND> 0.476
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.71
<EXPENSE-RATIO> 0.22
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
