<PAGE> PAGE 1
000 B000000 10/31/98
000 C000000 0000225997
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 FUNDS
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 VANGUARD SHORT-TERM TAX-EXEMPT FUND
007 C030100 N
007 C010200 2
007 C020200 VANGUARD INTERMEDIATE-TERM TAX-EXEMPT FUND
007 C030200 N
007 C010300 3
007 C020300 VANGUARD LONG-TERM TAX-EXEMPT FUND
007 C030300 N
007 C010400 4
007 C020400 VANGUARD HIGH-YIELD TAX-EXEMPT FUND
007 C030400 N
007 C010500 5
007 C020500 VANGUARD TAX-EXEMPT MONEY MARKET FUND
007 C030500 N
007 C010600 6
007 C020600 VANGUARD INSURED LONG-TERM TAX-EXEMPT FUND
007 C030600 N
007 C010700 7
007 C020700 VANGUARD LIMITED-TERM TAX-EXEMPT FUND
007 C030700 N
007 C010800 8
007 C010900 9
007 C011000 10
010 A00AA01 THE VANGUARD GROUP, INC.
010 B00AA01 801-11953
010 C01AA01 MALVERN
010 C02AA01 PA
010 C03AA01 19355
<PAGE> PAGE 2
012 A00AA01 THE VANGUARD GROUP, INC.
012 B00AA01 84-772
012 C01AA01 MALVERN
012 C02AA01 PA
012 C03AA01 19355
013 A00AA01 PRICE WATERHOUSE LLP
013 B01AA01 PHILADELPHIA
013 B02AA01 PA
013 B03AA01 19103
014 A00AA01 VANGUARD MARKETING CORPORATION
014 B00AA01 8-21570
015 A00AA01 CORESTATES BANK, N.A.
015 B00AA01 C
015 C01AA01 PHILADELPHIA
015 C02AA01 PA
015 C03AA01 19101
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 96
019 C00AA00 VANGUARDGR
020 C000001 0
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 2727789
022 D000001 1162333
022 A000002 LEHMAN BROTHERS INC.
022 B000002 13-2518466
022 C000002 3168791
022 D000002 326200
022 A000003 SMITH BARNEY INC.
022 B000003 13-1912900
022 C000003 1976340
022 D000003 1136192
022 A000004 VANGUARD TAX-EXEMPT MONEY MARKET FUND
022 B000004 23-2471394
022 C000004 1090537
022 D000004 1861654
022 A000005 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000005 13-5674085
022 C000005 1559126
<PAGE> PAGE 3
022 D000005 1087793
022 A000006 BEAR STEARNS SECURITIES CORP.
022 B000006 13-3299429
022 C000006 1825516
022 D000006 727510
022 A000007 MORGAN STANLEY & CO.,INC.
022 B000007 13-2655998
022 C000007 1290939
022 D000007 1093235
022 A000008 J.P. MORGAN SECURITIES
022 B000008 13-3224016
022 C000008 1621657
022 D000008 749964
022 A000009 VANGUARD CALIFORNIA TAX-EXEMPT MONEY MARKET F
022 B000009 23-2449298
022 C000009 544800
022 D000009 950205
022 A000010 VANGUARD INTERMEDIATE-TERM TAX-EXEMPT FUND
022 B000010 23-2471389
022 C000010 856483
022 D000010 621173
023 C000000 25039363
023 D000000 16089288
024 00AA00 N
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 Y
026 H000000 N
027 000000 Y
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
031 A00AA00 0
031 B00AA00 0
032 00AA00 0
033 00AA00 0
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 N
042 A00AA00 0
042 B00AA00 0
<PAGE> PAGE 4
042 C00AA00 0
042 D00AA00 0
042 E00AA00 0
042 F00AA00 0
042 G00AA00 0
042 H00AA00 0
043 00AA00 0
044 00AA00 0
045 00AA00 N
048 00AA00 0.000
048 A01AA00 0
048 A02AA00 0.000
048 B01AA00 0
048 B02AA00 0.000
048 C01AA00 0
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 0
048 K02AA00 0.000
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 3000
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
077 A000000 Y
077 B000000 Y
077 C000000 Y
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
<PAGE> PAGE 5
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 350000
081 A00AA00 Y
081 B00AA00 142
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
028 A010100 67888
028 A020100 4423
028 A030100 0
028 A040100 70723
028 B010100 56426
028 B020100 4222
028 B030100 0
028 B040100 57612
028 C010100 72333
028 C020100 4291
028 C030100 0
028 C040100 69343
028 D010100 79322
028 D020100 4340
028 D030100 0
028 D040100 48141
<PAGE> PAGE 6
028 E010100 87162
028 E020100 4322
028 E030100 0
028 E040100 64734
028 F010100 70172
028 F020100 4464
028 F030100 0
028 F040100 51801
028 G010100 433303
028 G020100 26062
028 G030100 0
028 G040100 362354
028 H000100 0
055 A000100 N
055 B000100 N
056 000100 N
057 000100 N
062 A000100 Y
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
062 E000100 54.2
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 45.4
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.4
063 A000100 0
063 B000100 1.2
064 A000100 Y
064 B000100 N
070 A010100 Y
070 A020100 N
070 B010100 N
070 B020100 N
070 C010100 Y
070 C020100 N
070 D010100 N
070 D020100 N
070 E010100 Y
070 E020100 N
070 F010100 N
070 F020100 N
<PAGE> PAGE 7
070 G010100 Y
070 G020100 N
070 H010100 N
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 N
070 K010100 Y
070 K020100 N
070 L010100 N
070 L020100 N
070 M010100 N
070 M020100 N
070 N010100 Y
070 N020100 N
070 O010100 Y
070 O020100 N
070 P010100 Y
070 P020100 Y
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 766936
071 B000100 443095
071 C000100 1214859
071 D000100 36
072 A000100 12
072 B000100 63608
072 C000100 0
072 D000100 0
072 E000100 0
072 F000100 200
072 G000100 1504
072 H000100 0
072 I000100 671
072 J000100 21
072 K000100 0
072 L000100 56
072 M000100 3
072 N000100 0
072 O000100 86
072 P000100 0
072 Q000100 0
072 R000100 7
072 S000100 0
072 T000100 511
072 U000100 0
072 V000100 7
072 W000100 0
<PAGE> PAGE 8
072 X000100 3066
072 Y000100 41
072 Z000100 60583
072AA000100 628
072BB000100 1
072CC010100 6658
072CC020100 0
072DD010100 60583
072DD020100 0
072EE000100 585
073 A010100 0.6090
073 A020100 0.0000
073 B000100 0.0060
073 C000100 0.0000
074 A000100 255
074 B000100 0
074 C000100 896570
074 D000100 750182
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 322
074 J000100 0
074 K000100 0
074 L000100 27565
074 M000100 0
074 N000100 1674894
074 O000100 17108
074 P000100 625
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 3498
074 S000100 0
074 T000100 1653663
074 U010100 105661
074 U020100 0
074 V010100 15.65
074 V020100 0.00
074 W000100 0.0000
074 X000100 19674
074 Y000100 0
075 A000100 0
075 B000100 1553350
076 000100 0.00
028 A010200 129121
028 A020200 22520
028 A030200 0
028 A040200 100340
<PAGE> PAGE 9
028 B010200 156096
028 B020200 21998
028 B030200 0
028 B040200 104178
028 C010200 139543
028 C020200 22844
028 C030200 0
028 C040200 116707
028 D010200 188995
028 D020200 22928
028 D030200 0
028 D040200 136077
028 E010200 150582
028 E020200 22466
028 E030200 0
028 E040200 88865
028 F010200 217937
028 F020200 23463
028 F030200 0
028 F040200 93537
028 G010200 982274
028 G020200 136219
028 G030200 0
028 G040200 639704
028 H000200 0
062 A000200 Y
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 4.6
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 94.3
062 P000200 0.0
062 Q000200 0.0
062 R000200 1.1
063 A000200 0
063 B000200 6.4
064 A000200 Y
064 B000200 N
070 A010200 Y
070 A020200 N
070 B010200 N
070 B020200 N
<PAGE> PAGE 10
070 C010200 Y
070 C020200 N
070 D010200 N
070 D020200 N
070 E010200 Y
070 E020200 Y
070 F010200 N
070 F020200 N
070 G010200 Y
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 Y
070 K010200 Y
070 K020200 N
070 L010200 N
070 L020200 N
070 M010200 N
070 M020200 N
070 N010200 Y
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 Y
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 2224674
071 B000200 957630
071 C000200 6840311
071 D000200 14
072 A000200 12
072 B000200 369801
072 C000200 0
072 D000200 0
072 E000200 0
072 F000200 927
072 G000200 7991
072 H000200 0
072 I000200 3495
072 J000200 80
072 K000200 0
072 L000200 270
072 M000200 12
072 N000200 0
072 O000200 401
<PAGE> PAGE 11
072 P000200 0
072 Q000200 0
072 R000200 10
072 S000200 0
072 T000200 1748
072 U000200 0
072 V000200 36
072 W000200 0
072 X000200 14970
072 Y000200 895
072 Z000200 355726
072AA000200 48301
072BB000200 28034
072CC010200 98989
072CC020200 0
072DD010200 355726
072DD020200 0
072EE000200 26386
073 A010200 0.6610
073 A020200 0.0000
073 B000200 0.0520
073 C000200 0.0000
074 A000200 21
074 B000200 0
074 C000200 361352
074 D000200 7329490
074 E000200 0
074 F000200 0
074 G000200 0
074 H000200 0
074 I000200 1505
074 J000200 0
074 K000200 0
074 L000200 138300
074 M000200 0
074 N000200 7830668
074 O000200 38742
074 P000200 2636
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 16213
074 S000200 0
074 T000200 7773077
074 U010200 574912
074 U020200 0
074 V010200 13.52
074 V020200 0.00
074 W000200 0.0000
074 X000200 109178
<PAGE> PAGE 12
074 Y000200 10689
075 A000200 0
075 B000200 7230792
076 000200 0.00
028 A010300 21128
028 A020300 4118
028 A030300 0
028 A040300 13944
028 B010300 22144
028 B020300 3992
028 B030300 0
028 B040300 13887
028 C010300 26415
028 C020300 4101
028 C030300 0
028 C040300 18235
028 D010300 31325
028 D020300 4129
028 D030300 0
028 D040300 13395
028 E010300 37068
028 E020300 4076
028 E030300 0
028 E040300 17210
028 F010300 47887
028 F020300 4272
028 F030300 0
028 F040300 19437
028 G010300 185967
028 G020300 24688
028 G030300 0
028 G040300 96108
028 H000300 0
062 A000300 Y
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 4.3
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 94.5
062 P000300 0.0
062 Q000300 0.0
062 R000300 1.2
<PAGE> PAGE 13
063 A000300 0
063 B000300 11.0
064 A000300 Y
064 B000300 N
070 A010300 Y
070 A020300 N
070 B010300 N
070 B020300 N
070 C010300 Y
070 C020300 N
070 D010300 N
070 D020300 N
070 E010300 Y
070 E020300 Y
070 F010300 N
070 F020300 N
070 G010300 Y
070 G020300 N
070 H010300 N
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 N
070 K010300 Y
070 K020300 N
070 L010300 N
070 L020300 N
070 M010300 N
070 M020300 N
070 N010300 Y
070 N020300 N
070 O010300 Y
070 O020300 N
070 P010300 Y
070 P020300 Y
070 Q010300 N
070 Q020300 N
070 R010300 N
070 R020300 N
071 A000300 498761
071 B000300 233458
071 C000300 1293084
071 D000300 18
072 A000300 12
072 B000300 73185
072 C000300 0
072 D000300 0
072 E000300 0
072 F000300 175
072 G000300 1518
<PAGE> PAGE 14
072 H000300 0
072 I000300 676
072 J000300 18
072 K000300 0
072 L000300 57
072 M000300 2
072 N000300 0
072 O000300 76
072 P000300 0
072 Q000300 0
072 R000300 7
072 S000300 0
072 T000300 294
072 U000300 0
072 V000300 7
072 W000300 0
072 X000300 2830
072 Y000300 154
072 Z000300 70509
072AA000300 21355
072BB000300 7908
072CC010300 18016
072CC020300 0
072DD010300 70509
072DD020300 0
072EE000300 6527
073 A010300 0.5800
073 A020300 0.0000
073 B000300 0.0580
073 C000300 0.0000
074 A000300 320
074 B000300 0
074 C000300 65116
074 D000300 1425714
074 E000300 0
074 F000300 0
074 G000300 0
074 H000300 0
074 I000300 294
074 J000300 2668
074 K000300 0
074 L000300 24334
074 M000300 0
074 N000300 1518446
074 O000300 6437
074 P000300 524
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 2710
<PAGE> PAGE 15
074 S000300 0
074 T000300 1508775
074 U010300 132415
074 U020300 0
074 V010300 11.39
074 V020300 0.00
074 W000300 0.0000
074 X000300 21896
074 Y000300 2646
075 A000300 0
075 B000300 1374663
076 000300 0.00
028 A010400 50370
028 A020400 7519
028 A030400 0
028 A040400 31952
028 B010400 56758
028 B020400 7362
028 B030400 0
028 B040400 38091
028 C010400 62165
028 C020400 7824
028 C030400 0
028 C040400 34441
028 D010400 65749
028 D020400 8011
028 D030400 0
028 D040400 36413
028 E010400 60759
028 E020400 8070
028 E030400 0
028 E040400 35416
028 F010400 55486
028 F020400 8195
028 F030400 0
028 F040400 38295
028 G010400 351287
028 G020400 46981
028 G030400 0
028 G040400 214608
028 H000400 0
055 A000400 N
055 B000400 N
056 000400 N
057 000400 N
062 A000400 Y
062 B000400 0.0
062 C000400 0.0
062 D000400 0.0
062 E000400 2.5
062 F000400 0.0
<PAGE> PAGE 16
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 97.4
062 P000400 0.0
062 Q000400 0.0
062 R000400 0.1
063 A000400 0
063 B000400 10.6
064 A000400 Y
064 B000400 Y
065 000400 N
070 A010400 Y
070 A020400 N
070 B010400 N
070 B020400 N
070 C010400 Y
070 C020400 N
070 D010400 N
070 D020400 N
070 E010400 Y
070 E020400 Y
070 F010400 N
070 F020400 N
070 G010400 Y
070 G020400 N
070 H010400 N
070 H020400 N
070 I010400 N
070 I020400 N
070 J010400 Y
070 J020400 Y
070 K010400 Y
070 K020400 N
070 L010400 N
070 L020400 N
070 M010400 N
070 M020400 N
070 N010400 Y
070 N020400 N
070 O010400 Y
070 O020400 N
070 P010400 Y
070 P020400 Y
070 Q010400 N
070 Q020400 N
<PAGE> PAGE 17
070 R010400 N
070 R020400 N
071 A000400 1000581
071 B000400 585067
071 C000400 2391259
071 D000400 24
072 A000400 12
072 B000400 135822
072 C000400 0
072 D000400 0
072 E000400 0
072 F000400 316
072 G000400 2538
072 H000400 0
072 I000400 1308
072 J000400 30
072 K000400 0
072 L000400 104
072 M000400 4
072 N000400 0
072 O000400 137
072 P000400 0
072 Q000400 0
072 R000400 8
072 S000400 0
072 T000400 560
072 U000400 0
072 V000400 13
072 W000400 0
072 X000400 5018
072 Y000400 186
072 Z000400 130990
072AA000400 33451
072BB000400 24943
072CC010400 54301
072CC020400 0
072DD010400 130990
072DD020400 0
072EE000400 10865
073 A010400 0.5820
073 A020400 0.0000
073 B000400 0.0520
073 C000400 0.0000
074 A000400 160
074 B000400 0
074 C000400 67557
074 D000400 2632783
074 E000400 0
074 F000400 0
074 G000400 0
074 H000400 0
<PAGE> PAGE 18
074 I000400 532
074 J000400 988
074 K000400 0
074 L000400 44639
074 M000400 0
074 N000400 2746659
074 O000400 35548
074 P000400 915
074 Q000400 0
074 R010400 0
074 R020400 0
074 R030400 0
074 R040400 5847
074 S000400 0
074 T000400 2704349
074 U010400 244498
074 U020400 0
074 V010400 11.06
074 V020400 0.00
074 W000400 0.0000
074 X000400 42293
074 Y000400 5979
075 A000400 0
075 B000400 2483230
076 000400 0.00
028 A010500 538814
028 A020500 16518
028 A030500 0
028 A040500 357999
028 B010500 529606
028 B020500 15305
028 B030500 0
028 B040500 508288
028 C010500 562012
028 C020500 15283
028 C030500 0
028 C040500 426651
028 D010500 531213
028 D020500 15383
028 D030500 0
028 D040500 458691
028 E010500 499996
028 E020500 15499
028 E030500 0
028 E040500 528539
028 F010500 582657
028 F020500 15488
028 F030500 0
028 F040500 388804
028 G010500 3244298
028 G020500 93476
<PAGE> PAGE 19
028 G030500 0
028 G040500 2668972
028 H000500 0
055 A000500 N
055 B000500 N
056 000500 N
057 000500 N
062 A000500 Y
062 B000500 0.0
062 C000500 0.0
062 D000500 0.0
062 E000500 99.4
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 0.6
063 A000500 54
063 B000500 0.0
064 A000500 Y
064 B000500 N
070 A010500 Y
070 A020500 N
070 B010500 N
070 B020500 N
070 C010500 N
070 C020500 N
070 D010500 N
070 D020500 N
070 E010500 N
070 E020500 N
070 F010500 N
070 F020500 N
070 G010500 N
070 G020500 N
070 H010500 N
070 H020500 N
070 I010500 N
070 I020500 N
070 J010500 Y
070 J020500 Y
070 K010500 Y
070 K020500 N
<PAGE> PAGE 20
070 L010500 N
070 L020500 N
070 M010500 N
070 M020500 N
070 N010500 Y
070 N020500 N
070 O010500 Y
070 O020500 N
070 P010500 Y
070 P020500 Y
070 Q010500 N
070 Q020500 N
070 R010500 N
070 R020500 N
071 A000500 0
071 B000500 0
071 C000500 0
071 D000500 0
072 A000500 12
072 B000500 204885
072 C000500 0
072 D000500 0
072 E000500 0
072 F000500 735
072 G000500 5253
072 H000500 0
072 I000500 2821
072 J000500 82
072 K000500 0
072 L000500 152
072 M000500 9
072 N000500 0
072 O000500 317
072 P000500 0
072 Q000500 0
072 R000500 9
072 S000500 0
072 T000500 1870
072 U000500 0
072 V000500 20
072 W000500 0
072 X000500 11268
072 Y000500 82
072 Z000500 193699
072AA000500 68
072BB000500 39
072CC010500 0
072CC020500 0
072DD010500 193699
072DD020500 0
072EE000500 0
<PAGE> PAGE 21
073 A010500 0.0340
073 A020500 0.0000
073 B000500 0.0000
073 C000500 0.0000
074 A000500 561
074 B000500 0
074 C000500 6208690
074 D000500 0
074 E000500 0
074 F000500 0
074 G000500 0
074 H000500 0
074 I000500 1190
074 J000500 1870
074 K000500 0
074 L000500 55815
074 M000500 0
074 N000500 6268126
074 O000500 4000
074 P000500 2103
074 Q000500 0
074 R010500 0
074 R020500 0
074 R030500 0
074 R040500 16262
074 S000500 0
074 T000500 6245761
074 U010500 6246355
074 U020500 0
074 V010500 1.00
074 V020500 0.00
074 W000500 1.0005
074 X000500 60910
074 Y000500 0
075 A000500 5742260
075 B000500 0
076 000500 0.00
028 A010600 21034
028 A020600 5999
028 A030600 0
028 A040600 26204
028 B010600 28816
028 B020600 5783
028 B030600 0
028 B040600 26352
028 C010600 27974
028 C020600 5955
028 C030600 0
028 C040600 21582
028 D010600 29377
028 D020600 5957
<PAGE> PAGE 22
028 D030600 0
028 D040600 18594
028 E010600 50199
028 E020600 5802
028 E030600 0
028 E040600 24829
028 F010600 35133
028 F020600 6036
028 F030600 0
028 F040600 24103
028 G010600 192533
028 G020600 35532
028 G030600 0
028 G040600 141664
028 H000600 0
062 A000600 Y
062 B000600 0.0
062 C000600 0.0
062 D000600 0.0
062 E000600 3.1
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 96.0
062 P000600 0.0
062 Q000600 0.0
062 R000600 0.9
063 A000600 0
063 B000600 10.9
064 A000600 Y
064 B000600 N
070 A010600 Y
070 A020600 N
070 B010600 N
070 B020600 N
070 C010600 Y
070 C020600 N
070 D010600 N
070 D020600 N
070 E010600 Y
070 E020600 Y
070 F010600 N
070 F020600 N
070 G010600 Y
070 G020600 N
<PAGE> PAGE 23
070 H010600 N
070 H020600 N
070 I010600 N
070 I020600 N
070 J010600 Y
070 J020600 N
070 K010600 Y
070 K020600 N
070 L010600 N
070 L020600 N
070 M010600 N
070 M020600 N
070 N010600 Y
070 N020600 N
070 O010600 Y
070 O020600 N
070 P010600 Y
070 P020600 N
070 Q010600 N
070 Q020600 N
070 R010600 N
070 R020600 N
071 A000600 450613
071 B000600 338595
071 C000600 2066893
071 D000600 16
072 A000600 12
072 B000600 115118
072 C000600 0
072 D000600 0
072 E000600 0
072 F000600 275
072 G000600 2253
072 H000600 0
072 I000600 1080
072 J000600 26
072 K000600 0
072 L000600 87
072 M000600 4
072 N000600 0
072 O000600 118
072 P000600 0
072 Q000600 0
072 R000600 7
072 S000600 0
072 T000600 428
072 U000600 0
072 V000600 12
072 W000600 0
072 X000600 4290
072 Y000600 140
<PAGE> PAGE 24
072 Z000600 110968
072AA000600 22818
072BB000600 17941
072CC010600 46601
072CC020600 0
072DD010600 110968
072DD020600 0
072EE000600 13338
073 A010600 0.6580
073 A020600 0.0000
073 B000600 0.0810
073 C000600 0.0000
074 A000600 157
074 B000600 0
074 C000600 70597
074 D000600 2145270
074 E000600 0
074 F000600 0
074 G000600 0
074 H000600 0
074 I000600 441
074 J000600 30512
074 K000600 0
074 L000600 36639
074 M000600 0
074 N000600 2283616
074 O000600 42756
074 P000600 896
074 Q000600 0
074 R010600 0
074 R020600 0
074 R030600 0
074 R040600 4829
074 S000600 0
074 T000600 2235135
074 U010600 175515
074 U020600 0
074 V010600 12.73
074 V020600 0.00
074 W000600 0.0000
074 X000600 34510
074 Y000600 7049
075 A000600 0
075 B000600 2129781
076 000600 0.00
025 D000701 0
025 D000702 0
025 D000703 0
025 D000704 0
025 D000705 0
025 D000706 0
<PAGE> PAGE 25
025 D000707 0
025 D000708 0
028 A010700 73190
028 A020700 6143
028 A030700 0
028 A040700 53755
028 B010700 69882
028 B020700 5960
028 B030700 0
028 B040700 54991
028 C010700 98491
028 C020700 6241
028 C030700 0
028 C040700 53730
028 D010700 86947
028 D020700 6395
028 D030700 0
028 D040700 42214
028 E010700 61946
028 E020700 6287
028 E030700 0
028 E040700 49504
028 F010700 84064
028 F020700 6566
028 F030700 0
028 F040700 49818
028 G010700 474520
028 G020700 37592
028 G030700 0
028 G040700 304012
028 H000700 0
055 A000700 N
055 B000700 N
056 000700 N
057 000700 N
062 A000700 Y
062 B000700 0.0
062 C000700 0.0
062 D000700 0.0
062 E000700 7.2
062 F000700 0.0
062 G000700 0.0
062 H000700 0.0
062 I000700 0.0
062 J000700 0.0
062 K000700 0.0
062 L000700 0.0
062 M000700 0.0
062 N000700 0.0
062 O000700 91.9
062 P000700 0.0
<PAGE> PAGE 26
062 Q000700 0.0
062 R000700 0.9
063 A000700 0
063 B000700 3.3
064 A000700 Y
064 B000700 N
070 A010700 Y
070 A020700 N
070 B010700 N
070 B020700 N
070 C010700 Y
070 C020700 N
070 D010700 N
070 D020700 N
070 E010700 Y
070 E020700 Y
070 F010700 N
070 F020700 N
070 G010700 Y
070 G020700 N
070 H010700 N
070 H020700 N
070 I010700 N
070 I020700 N
070 J010700 Y
070 J020700 Y
070 K010700 Y
070 K020700 N
070 L010700 N
070 L020700 N
070 M010700 N
070 M020700 N
070 N010700 Y
070 N020700 N
070 O010700 Y
070 O020700 N
070 P010700 Y
070 P020700 Y
070 Q010700 N
070 Q020700 N
070 R010700 N
070 R020700 N
071 A000700 1065742
071 B000700 721018
071 C000700 2087881
071 D000700 35
072 A000700 12
072 B000700 95063
072 C000700 0
072 D000700 0
072 E000700 0
<PAGE> PAGE 27
072 F000700 272
072 G000700 2343
072 H000700 0
072 I000700 938
072 J000700 26
072 K000700 0
072 L000700 72
072 M000700 4
072 N000700 0
072 O000700 118
072 P000700 0
072 Q000700 0
072 R000700 7
072 S000700 0
072 T000700 606
072 U000700 0
072 V000700 10
072 W000700 0
072 X000700 4396
072 Y000700 246
072 Z000700 90913
072AA000700 3192
072BB000700 2613
072CC010700 22307
072CC020700 0
072DD010700 90913
072DD020700 0
072EE000700 0
073 A010700 0.4600
073 A020700 0.0000
073 B000700 0.0000
073 C000700 0.0000
074 A000700 52
074 B000700 0
074 C000700 167352
074 D000700 2151533
074 E000700 0
074 F000700 0
074 G000700 0
074 H000700 0
074 I000700 455
074 J000700 0
074 K000700 0
074 L000700 44848
074 M000700 0
074 N000700 2364240
074 O000700 19407
074 P000700 788
074 Q000700 0
074 R010700 0
074 R020700 0
<PAGE> PAGE 28
074 R030700 0
074 R040700 3865
074 S000700 0
074 T000700 2340180
074 U010700 215635
074 U020700 0
074 V010700 10.85
074 V020700 0.00
074 W000700 0.0000
074 X000700 28577
074 Y000700 2448
075 A000700 0
075 B000700 2134056
076 000700 0.00
SIGNATURE GARY P. SOURA
TITLE MANAGER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUNDS
<SERIES>
<NUMBER> 01
<NAME> VANGUARD SHORT-TERM TAX-EXEMPT FUND
<MULTIPLIER> 1000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> OCT-31-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1633083
<INVESTMENTS-AT-VALUE> 1646752
<RECEIVABLES> 27565
<ASSETS-OTHER> 577
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1674894
<PAYABLE-FOR-SECURITIES> 17108
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4123
<TOTAL-LIABILITIES> 21231
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1639413
<SHARES-COMMON-STOCK> 105661
<SHARES-COMMON-PRIOR> 95257
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 581
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 13669
<NET-ASSETS> 1653663
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 63608
<OTHER-INCOME> 0
<EXPENSES-NET> 3025
<NET-INVESTMENT-INCOME> 60583
<REALIZED-GAINS-CURRENT> 627
<APPREC-INCREASE-CURRENT> 6658
<NET-CHANGE-FROM-OPS> 67868
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 60583
<DISTRIBUTIONS-OF-GAINS> 585
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 60783
<NUMBER-OF-SHARES-REDEEMED> 53669
<SHARES-REINVESTED> 3290
<NET-CHANGE-IN-ASSETS> 169098
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 539
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 200
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3066
<AVERAGE-NET-ASSETS> 1553350
<PER-SHARE-NAV-BEGIN> 15.58
<PER-SHARE-NII> 0.609
<PER-SHARE-GAIN-APPREC> 0.076
<PER-SHARE-DIVIDEND> 0.609
<PER-SHARE-DISTRIBUTIONS> 0.006
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.65
<EXPENSE-RATIO> 0.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUNDS
<SERIES>
<NUMBER> 02
<NAME> VANGUARD INTERMEDIATE-TERM TAX-EXEMPT FUND
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> OCT-31-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 7215773
<INVESTMENTS-AT-VALUE> 7690842
<RECEIVABLES> 138300
<ASSETS-OTHER> 1526
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7830668
<PAYABLE-FOR-SECURITIES> 38742
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18849
<TOTAL-LIABILITIES> 57591
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7354870
<SHARES-COMMON-STOCK> 574912
<SHARES-COMMON-PRIOR> 507261
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 32364
<ACCUM-APPREC-OR-DEPREC> 450571
<NET-ASSETS> 7773077
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 369801
<OTHER-INCOME> 0
<EXPENSES-NET> 14075
<NET-INVESTMENT-INCOME> 355726
<REALIZED-GAINS-CURRENT> 20267
<APPREC-INCREASE-CURRENT> 98989
<NET-CHANGE-FROM-OPS> 474982
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 355726
<DISTRIBUTIONS-OF-GAINS> 26386
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 147963
<NUMBER-OF-SHARES-REDEEMED> 101633
<SHARES-REINVESTED> 21322
<NET-CHANGE-IN-ASSETS> 1002938
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 26245
<GROSS-ADVISORY-FEES> 927
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 14970
<AVERAGE-NET-ASSETS> 7230792
<PER-SHARE-NAV-BEGIN> 13.35
<PER-SHARE-NII> 0.661
<PER-SHARE-GAIN-APPREC> 0.222
<PER-SHARE-DIVIDEND> 0.661
<PER-SHARE-DISTRIBUTIONS> 0.052
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.52
<EXPENSE-RATIO> 0.21
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUNDS
<SERIES>
<NUMBER> 03
<NAME> VANGUARD LONG-TERM TAX-EXEMPT FUND
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> OCT-31-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1361573
<INVESTMENTS-AT-VALUE> 1490830
<RECEIVABLES> 27002
<ASSETS-OTHER> 614
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1518446
<PAYABLE-FOR-SECURITIES> 6437
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3234
<TOTAL-LIABILITIES> 9671
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1383988
<SHARES-COMMON-STOCK> 132415
<SHARES-COMMON-PRIOR> 111702
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 2180
<ACCUM-APPREC-OR-DEPREC> 126967
<NET-ASSETS> 1508775
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 73185
<OTHER-INCOME> 0
<EXPENSES-NET> 2676
<NET-INVESTMENT-INCOME> 70509
<REALIZED-GAINS-CURRENT> 13447
<APPREC-INCREASE-CURRENT> 18016
<NET-CHANGE-FROM-OPS> 101972
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 70509
<DISTRIBUTIONS-OF-GAINS> 6527
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 33634
<NUMBER-OF-SHARES-REDEEMED> 17574
<SHARES-REINVESTED> 4653
<NET-CHANGE-IN-ASSETS> 259638
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 9100
<GROSS-ADVISORY-FEES> 175
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2830
<AVERAGE-NET-ASSETS> 1374663
<PER-SHARE-NAV-BEGIN> 11.18
<PER-SHARE-NII> 0.580
<PER-SHARE-GAIN-APPREC> 0.268
<PER-SHARE-DIVIDEND> 0.580
<PER-SHARE-DISTRIBUTIONS> 0.058
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.39
<EXPENSE-RATIO> 0.21
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUNDS
<SERIES>
<NUMBER> 04
<NAME> VANGUARD HIGH-YIELD TAX-EXEMPT FUND
<MULTIPLIER> 1000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> OCT-31-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 2503421
<INVESTMENTS-AT-VALUE> 2700340
<RECEIVABLES> 45627
<ASSETS-OTHER> 692
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2746659
<PAYABLE-FOR-SECURITIES> 35548
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6762
<TOTAL-LIABILITIES> 42310
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2524351
<SHARES-COMMON-STOCK> 244498
<SHARES-COMMON-PRIOR> 208259
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 13103
<ACCUM-APPREC-OR-DEPREC> 193101
<NET-ASSETS> 2704349
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 135822
<OTHER-INCOME> 0
<EXPENSES-NET> 4832
<NET-INVESTMENT-INCOME> 130990
<REALIZED-GAINS-CURRENT> 8508
<APPREC-INCREASE-CURRENT> 54301
<NET-CHANGE-FROM-OPS> 193799
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 130990
<DISTRIBUTIONS-OF-GAINS> 10865
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 67558
<NUMBER-OF-SHARES-REDEEMED> 40243
<SHARES-REINVESTED> 8924
<NET-CHANGE-IN-ASSETS> 448777
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (10746)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 316
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 5018
<AVERAGE-NET-ASSETS> 2483230
<PER-SHARE-NAV-BEGIN> 10.83
<PER-SHARE-NII> 0.582
<PER-SHARE-GAIN-APPREC> 0.282
<PER-SHARE-DIVIDEND> 0.582
<PER-SHARE-DISTRIBUTIONS> 0.052
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.06
<EXPENSE-RATIO> 0.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUNDS
<SERIES>
<NUMBER> 05
<NAME> VANGUARD TAX-EXEMPT MONEY MARKET FUND
<MULTIPLIER> 1000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> OCT-31-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 6208690
<INVESTMENTS-AT-VALUE> 6208690
<RECEIVABLES> 57685
<ASSETS-OTHER> 1751
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 6268126
<PAYABLE-FOR-SECURITIES> 4000
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18365
<TOTAL-LIABILITIES> 22365
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6246369
<SHARES-COMMON-STOCK> 6246355
<SHARES-COMMON-PRIOR> 5381033
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (608)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 6245761
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 204885
<OTHER-INCOME> 0
<EXPENSES-NET> 11186
<NET-INVESTMENT-INCOME> 193699
<REALIZED-GAINS-CURRENT> 29
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 193728
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 193699
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6814946
<NUMBER-OF-SHARES-REDEEMED> 6131356
<SHARES-REINVESTED> 181732
<NET-CHANGE-IN-ASSETS> 865351
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (637)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 735
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11268
<AVERAGE-NET-ASSETS> 5742260
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.034
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0.034
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<RESTATED>
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUNDS
<SERIES>
<NUMBER> 06
<NAME> VANGUARD INSURED LONG-TERM TAX-EXEMPT FUND
<MULTIPLIER> 1,000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> OCT-31-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 1981234
<INVESTMENTS-AT-VALUE> 2215867
<RECEIVABLES> 67151
<ASSETS-OTHER> 598
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2283616
<PAYABLE-FOR-SECURITIES> 42756
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5725
<TOTAL-LIABILITIES> 48481
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2027921
<SHARES-COMMON-STOCK> 175515
<SHARES-COMMON-PRIOR> 163349
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 27160
<ACCUM-APPREC-OR-DEPREC> 234374
<NET-ASSETS> 2235135
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 115118
<OTHER-INCOME> 0
<EXPENSES-NET> 4150
<NET-INVESTMENT-INCOME> 110968
<REALIZED-GAINS-CURRENT> 4877
<APPREC-INCREASE-CURRENT> 46601
<NET-CHANGE-FROM-OPS> 162446
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 110968
<DISTRIBUTIONS-OF-GAINS> 13338
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 28400
<NUMBER-OF-SHARES-REDEEMED> 22594
<SHARES-REINVESTED> 6361
<NET-CHANGE-IN-ASSETS> 192016
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 18699
<GROSS-ADVISORY-FEES> 275
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4290
<AVERAGE-NET-ASSETS> 2129781
<PER-SHARE-NAV-BEGIN> 12.51
<PER-SHARE-NII> 0.658
<PER-SHARE-GAIN-APPREC> 0.301
<PER-SHARE-DIVIDEND> 0.658
<PER-SHARE-DISTRIBUTIONS> 0.081
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.73
<EXPENSE-RATIO> 0.20
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000225997
<NAME> VANGUARD MUNICIPAL BOND FUNDS
<SERIES>
<NUMBER> 07
<NAME> VANGUARD LIMITED-TERM TAX-EXEMPT FUND
<MULTIPLIER> 1000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> OCT-31-1998
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 2267447
<INVESTMENTS-AT-VALUE> 2318885
<RECEIVABLES> 44848
<ASSETS-OTHER> 507
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2364240
<PAYABLE-FOR-SECURITIES> 19407
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4653
<TOTAL-LIABILITIES> 24060
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2294957
<SHARES-COMMON-STOCK> 215635
<SHARES-COMMON-PRIOR> 182680
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1864)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 47087
<NET-ASSETS> 2340180
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 95063
<OTHER-INCOME> 0
<EXPENSES-NET> 4150
<NET-INVESTMENT-INCOME> 90913
<REALIZED-GAINS-CURRENT> 579
<APPREC-INCREASE-CURRENT> 22307
<NET-CHANGE-FROM-OPS> 113799
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 90913
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 86051
<NUMBER-OF-SHARES-REDEEMED> 59721
<SHARES-REINVESTED> 6626
<NET-CHANGE-IN-ASSETS> 378171
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (2443)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 272
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4396
<AVERAGE-NET-ASSETS> 2134056
<PER-SHARE-NAV-BEGIN> 10.74
<PER-SHARE-NII> 0.460
<PER-SHARE-GAIN-APPREC> 0.110
<PER-SHARE-DIVIDEND> 0.460
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.85
<EXPENSE-RATIO> 0.21
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
