<PAGE>
MERRILL LYNCH CORPORATE BOND FUND, INC.
------------------------
SUPPLEMENT TO PROSPECTUS DATED JANUARY 27, 1994
------------------------
The first paragraph of the description of 'Standby Commitment Agreements'
on pages 18 and 19 of the Prospectus is revised to read as follows:
The High Income Portfolio of the Fund may from time to time enter into
standby commitment agreements. Such agreements commit the Portfolio, for a
stated period of time, to purchase a stated amount of a fixed income security
which may be issued and sold to the Portfolio at the option of the issuer. The
price and coupon of the security is fixed at the time of the commitment. At the
time of entering into the agreement the Portfolio is paid a commitment fee,
regardless of whether or not the security is ultimately issued, which is
typically approximately .5% of the aggregate purchase price of the security
which the Portfolio has committed to purchase. The Portfolio will enter into
such agreements only for the purpose of investing in the security underlying the
commitment at a yield and price which is considered advantageous to the
Portfolio. The Portfolio will not enter into a standby commitment with a
remaining term in excess of 60 days and will limit its investment in such
commitments so that the aggregate purchase price of the securities subject to
such commitments, together with the value of the portfolio securities subject to
legal restrictions on resale, will not exceed 10% of its assets taken at the
time of acquisition of such commitment or security. The Portfolio will at all
times maintain a segregated account with its custodian of cash or liquid,
high-grade debt obligations in an amount equal to the purchase price of the
securities underlying the commitment.
In addition, the following paragraph is added as a second paragraph under
'Additional Information-- Determination of Net Asset Value' on page 38 of the
Prospectus:
Prices of securities held by each Portfolio of the Fund will be determined
by Merrill Lynch Securities Pricing Services ('MLSPS') pursuant to procedures
approved by the Board of Directors of the Fund. The Board of Directors of the
Fund has examined the methods used by MLSPS in estimating the value of
securities held by each Portfolio and believes that such methods will reasonably
and fairly approximate the price at which those securities may be sold and
result in a good faith determination of the fair value of such securities;
however, there is no assurance that securities can be sold at the prices at
which they are valued. During the year ended September 30, 1993, the Fund did
not use the pricing services of MLSPS and therefore made no payments to MLSPS
for such services.
Code # 10046ALL-1
