GENERAL MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the General Municipal
Bond Fund, Inc. For its annual reporting period ended February 29, 1996, your
Fund earned a total return, including bond price changes, interest income and
capital gain distributions of 9.82%.* Income dividends exempt from Federal
personal income taxes of approximately $.817 per share were paid to
shareholders.** This is equivalent to an annualized tax-free distribution
rate per share of 5.42%.
THE ECONOMY
The United States has entered its sixth year of economic expansion
accompanied by increasing signs that growth is slowing. The systematic
reduction in short-term interest rates by the Federal Reserve Board that
began last July has not yet served as a stimulus to weakening economic
activity. Over the past 12 months, the Fed has kept a cautious eye on price
trends, concerned that undue monetary stimulus would rekindle inflationary
pressures. Yet, inflation has continued at a moderate pace; the Consumer Price
Index rose 2.5% last year.
The economy, heavily influenced by the increasingly cautious spending
patterns of consumers, has weakened markedly. The Commerce Department
reported that fourth-quarter 1995 Gross Domestic Product grew at an annual
rate of only 0.9%. For the full year, GDP grew only 2.1% compared with
aggregate economic growth of 3.5% in 1994. The most dramatic sign of weakness
was in the consumer sector, where personal consumption expenditures expanded
at an annualized rate of only 0.8%, sharply lower than the third-quarter rate
of 2.8%. While exports remained strong, there are developing signs of
economic weakness with some of our major trading partners, including Japan,
Germany, Canada and Mexico.
Output at the nation's factories declined sharply in January, the largest
decline in nearly five years. No doubt influenced to a degree by the bad
winter weather, the output figures reflect a continued softening in the
economy. Production growth in 1995 (+3.2%) was little more than half its 1994
rate (+5.9%). The Capacity Utilization Rate also declined in January. This
hints at a continued moderation in inflation since a declining rate suggests
a lack of production bottlenecks that could result in price increases.
Business inventories have continued to rise and consumers remain
reluctant to spend. Holiday retail sales were at the lowest level since the
1990-91 recession. The slow rate of increase in wages and benefits - up only
2.9% in 1995, the smallest rise since 1980 - was a key factor in consumer
spending wariness. This moderate wage increase helped businesses control
their costs (payrolls account for about 70% of business expenses) but does
not help the consumer side of the economic equation. Given that consumers
represent about two-thirds of all economic activity, their continued
retrenchment could continue to retard prospects for economic growth.
THE MARKET
The Federal Reserve refrained from overt action on short-term interest
rates in February after reducing the Fed Funds Rate in each of the two
previous months. Alan Greenspan, recently reappointed to his third term as
chairman of the Federal Reserve, roiled the capital markets with his
testimony to Congress that the economy may be in better shape than some
investors thought. The implication was that further reductions in interest
rates may not be as imminent as many assumed. Accordingly, bond prices fell
sharply, driving interest rates back to October 1995 levels.
Certainly, the outsized gain in the February payroll report (705,000 new
jobs created) caught the markets by surprise as evidenced by their reactions.
The rather dramatic sell-off in the markets suggests that investors have been
too negative in their assessment of economic growth and too optimistic about
the prospects for a balanced budget accord. It is the nature of market
sentiment to reach excessive levels which is precisely what happened this time.
The markets now have to adjust to rate levels that better reflect expected
economic activity. This adjustment generally takes time to accomplish, but
just as the pendulum swings too far in one direction, at some point, it will
reverse.
THE PORTFOLIO
The past year was very rewarding for municipal bond investors as yields
fell by as much as 125 basis points (1.25%), translating into appreciable
price gains. As stated in our September 15, 1995 Letter to Shareholders, the
Fund adopted a more defensive posture last summer in response to firming
economic growth. Our feeling at that time was that it would be prudent to
lock in a good portion of the gains achieved earlier in the year; the risk to
our strategy was that future gains would be limited in the event of a market
rally. As a clearer economic picture emerged late in the calendar year, the
Fund's duration was lengthened with the expectation for further rate
declines. Interest rates did continue to fall, and the Fund was able to
capture most of the resulting market move even though some potential gains
were sacrificed by our earlier, defensive posture.
The advent of the new calendar year marked the "top" in the market. Since
then the bond markets have experienced considerable price erosion. Our
posture, while in the "bull" camp several weeks ago, has turned much more
cautious. Cash reserves are being maintained at higher than normal levels.
Increased reserve positions, combined with selective parings of bond
holdings, have reduced the Fund's exposure to further adverse price moves.
While the economic fundamentals are currently a bit more positive for the
economy (and negative for bonds), we anticipate that a good buying
opportunity will re-emerge sometime this year. A large portion of the recent
weakening in prices is attributable to factors such as the lack of a balanced
budget agreement. Inflation is still benign. Interest rates at today's higher
levels can provide an historically high return relative to both the current
and expected rate of inflation.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
March 15, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders.
+ Annualized distribution rate per share is based upon dividends per
share paid from net investment income during the period, divided by the net
asset value per share at the end of the period, adjusted for capital gain
distributions.
GENERAL MUNICIPAL BOND FUND, INC.
FEBRUARY 29, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN GENERAL MUNICIPAL BOND
FUND, INC. AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
Dollars
$22,001
Lehman Brothers
Municipal Bond Index*
$21,429
General Municipal
Bond Fund
*Source: Lehman Brothers
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED TEN YEARS ENDED
FEBRUARY 29, 1996 FEBRUARY 29, 1996 FEBRUARY 29, 1996
___________ __________ ______________
<S> <C> <C> <C>
9.82% 8.63% 7.92%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in General Municipal Bond
Fund on 2/28/86 to a $10,000 investment made in the Lehman Brothers Municipal
Bond Index on that date. All dividends and capital gain distributions are
reinvested.
The Fund invests primarily in municipal securities and its performance shown
in the line graph takes into account fees and expenses. Unlike the Fund, the
Lehman Brothers Municipal Bond Index is an unmanaged total return performance
benchmark for the long-term, investment-grade tax exempt bond market,
calculated by using municipal bonds selected to be representative of the
municipal market overall. The Index does not take into account charges, fees
and other expenses. Further information relating to Fund performance,
including expense reimbursements, if applicable, is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS FEBRUARY 29, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-94.3% AMOUNT VALUE
_______ _______
<S> <C> <C>
ALABAMA-.8%
Alabama Housing Finance Authority, SFMR
6.40%, 10/1/2020 (Collateralized; Home Mortgage Revenue Bond Program)... $ 6,000,000 $ 6,123,720
ARIZONA-.4%
Phoenix, Refunding 6.25%, 7/1/2017.......................................... 2,800,000 3,139,192
CALIFORNIA-2.3%
California Department of Water Resources, Water System Revenue
(Central Valley Project) 4.75%, 12/1/2025............................... 5,000,000 4,416,950
Long Beach, Harbor Revenue 5.25%, 5/15/2025 (Insured; MBIA)................. 5,500,000 5,138,265
Los Angeles County Metropolitan Transportation Authority, Sales Tax Revenue
5%, 7/1/2025 (Insured; AMBAC)........................................... 5,635,000 5,222,743
Los Angeles Department of Water and Power, Electric Plant Revenue
5%, 10/15/2033 (Insured; MBIA).......................................... 5,000,000 4,505,850
COLORADO-7.5%
Colorado Housing Finance Authority, Single Family Program 7.55%, 8/1/2023... 3,450,000 3,654,033
Denver City and County:
Airport System Revenue:
7.25%, 11/15/2007 (Insured; MBIA)..................................... 6,250,000 7,161,437
7.25%, 11/15/2012..................................................... 5,100,000 5,552,829
8.25%, 11/15/2012..................................................... 4,505,000 5,219,763
7.75%, 11/15/2021..................................................... 6,760,000 7,802,324
7.25%, 11/15/2023..................................................... 5,185,000 5,909,137
8.75%, 11/15/2023..................................................... 3,250,000 3,911,147
8%, 11/15/2025........................................................ 5,250,000 6,044,587
Special Facilities Airport Revenue (United Airlines Project) 6.875%, 10/1/2032 11,235,000 11,763,719
Lakewood, MFHR, Mortgage 6.70%, 10/1/2036 (Insured; FHA).................... 5,000,000 5,183,200
CONNECTICUT-.3%
Connecticut Housing Finance Authority (Housing Mortgage Finance Program)
6.50%, 5/15/2027........................................................ 2,450,000 2,492,606
DISTRICT OF COLUMBIA-.9%
District of Columbia, HR, Refunding (National Rehabilitation Hospital -
Medlantic)
7.10%, 11/1/2011 (Insured; MBIA)........................................ 7,000,000 7,726,740
FLORIDA-5.4%
Dade County, Refunding (Seaport) 5.125%, 10/1/2021 (Insured; MBIA).......... 15,210,000 14,440,830
Hillsborough County Capital Improvement Program, Revenue, Refunding
(Mosi Project) 5.125%, 7/1/2022 (Insured; MBIA)......................... 6,190,000 5,864,468
Palm Beach County, Solid Waste IDR (Osceola Power Ltd. Partnership)
6.95%, 1/1/2022......................................................... 3,000,000 3,063,480
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
FLORIDA (CONTINUED)
Pinellas County Housing Facilities Authority, SFMR (Multi-County Program)
6.70%, 2/1/2028 (Insured; FHA).......................................... $ 7,500,000 $ 7,715,325
Polk County Industrial Development Authority, IDR 7.525%, 1/1/2015.......... 12,840,000 13,563,020
GEORGIA-1.5%
Fulton County School District, Refunding 6.375%, 5/1/2016................... 5,900,000 6,659,802
Macon-Bibb County Industrial Authority, Industrial Revenue (Weyerhaeuser Co.
Project)
9%, 10/1/2007........................................................... 1,000,000 1,360,260
Monroe County Development Authority, PCR, Refunding
(Oglethorpe Power Corp., Scherer Project) 6.75%, 1/1/2010............... 4,000,000 4,563,360
IDAHO-.5%
Idaho Housing Agency, Housing Revenue (Blue Meadows Project)
7.20%, 7/1/2033 (Insured; FHA).......................................... 3,500,000 3,674,055
ILLINOIS-8.5%
Chicago, Gas Supply Revenue (People's Gas Light and Coke Co. Project)
8.10%, 5/1/2020......................................................... 3,000,000 3,386,340
Chicago-O'Hare International Airport, Revenue:
Refunding 5%, 1/1/2011 (Insured; MBIA).................................. 10,000,000 9,789,200
Special Facility:
(American Airlines Inc. Project) 7.875%, 11/1/2025.................... 2,725,000 2,978,507
(United Airlines Inc. Project):
8.40%, 5/1/2018................................................... 2,845,000 3,125,602
8.50%, 5/1/2018................................................... 2,500,000 2,803,850
8.85%, 5/1/2018................................................... 6,460,000 7,434,943
Chicago Park District, Capital Improvement 6.05%, 1/1/2013 (Insured; FGIC).. 4,250,000 4,452,428
State of Illinois, Special State Obligation (Civic Center)
6.25%, 12/15/2020 (Insured; AMBAC)...................................... 3,000,000 3,282,840
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers Facility Acquisition) 8.75%, 3/1/2010 2,220,000 2,398,288
Illinois Health Facilities Authority, Revenue:
(Beverly Farm Foundation) 9.125%, 12/15/2015............................ 2,000,000 2,181,220
(Residential Centers Inc.) 8.50%, 8/15/2016............................. 5,925,000 6,087,819
Robbins, RRR (Robbins Resource Recovery Partners) 9.25%, 10/15/2014......... 14,750,000 14,320,333
Village of Romeoville 8.375%, 1/1/2010...................................... 7,495,000 8,470,474
INDIANA-1.8%
Fishers, Economic Development Revenue, First Mortgage (United Student Funds
Inc.)
8.375%, 9/1/2014........................................................ 2,000,000 2,138,640
Indianapolis Airport Authority, Special Facility Revenue (United Airlines
Project)
6.50%, 11/15/2031....................................................... 12,250,000 12,541,060
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
KENTUCKY-4.2%
Kenton County Airport Board, Airport Revenue
(Special Facilities - Delta Airlines Project):
7.50%, 2/1/2012....................................................... $ 11,550,000 $12,558,777
7.50%, 2/1/2020....................................................... 3,000,000 3,254,220
7.125%, 2/1/2021...................................................... 6,130,000 6,515,761
City of Mount Sterling, Revenue (Kentucky League of Cities Funding Trust
Lease
Program) 6.10%, 3/1/2018................................................ 5,500,000 5,686,230
Pendleton County, Multi-County Lease Revenue (Kentucky Association of
Counties
Leasing Trust Program) 6.40%, 3/1/2019.................................. 6,000,000 6,482,100
LOUISIANA-1.3%
Louisiana Public Facilities Authority, HR (Louisiana Association of
Independent
Colleges and Universities Facilities Loan Program) 7%, 12/1/2017........ 6,195,000 6,591,852
Parish of Saint James, SWDR (Freeport-McMoRan Partnership Project)
7.70%,10/1/2022......................................................... 4,140,000 4,275,833
MAINE-1.2%
Maine Finance Authority, SWDR (Boise Cascade Corp. Project) 7.90%, 6/1/2015. 6,900,000 7,484,154
Maine Public Utility Financing Bank, Public Utility Revenue (Maine Public
Services
Co. Project) 7.875%, 4/1/2021 (LOC; Barclays Bank p.l.c.) (a)........... 2,750,000 2,866,050
MARYLAND-2.7%
Maryland Community Development Administration, Department of Housing and
Community Development (Single Family Program) 6.55%, 4/1/2026........... 10,000,000 10,228,600
Maryland Health and Higher Educational Facilities Authority, Revenue,
Refunding
(Greater Baltimore Medical Center) 5%, 7/1/2019 (Insured; FGIC)......... 10,000,000 9,365,100
Montgomery County Housing Opportunities Commission, MFMR 7.375%, 7/1/2032... 2,635,000 2,775,393
MASSACHUSETTS-4.8%
State of Massachusetts, Consolidated Loan 4.875%, 10/1/2013 (Insured; MBIA). 20,000,000 18,719,200
Massachusetts Health and Educational Facilities Authority, Revenue
(New England Deaconess Hospital Issue) 7.20%, 4/1/2022.................. 10,070,000 10,854,252
Massachusetts Housing Finance Agency, Housing Revenue, Single Family
6.65%, 12/1/2027........................................................ 7,000,000 7,194,530
Massachusetts Port Authority, Special Project Revenue (Harborside Hyatt
Project)
10%, 3/1/2026........................................................... 3,000,000 3,367,080
MICHIGAN-5.4%
East Grand Rapids Public School District, Building and Site 5%, 5/1/2016.... 5,625,000 5,346,844
Flint Tax Increment Finance Authority, Refunding 6.125%, 6/1/2006........... 3,900,000 4,104,516
Michigan Hospital Finance Authority, HR, Refunding:
(Henry Ford Health System) 5.25%, 11/15/2025............................ 8,965,000 8,481,518
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
MICHIGAN (CONTINUED)
Michigan Hospital Finance Authority, HR, Refunding (continued):
(Genesys Health System):
8.10%, 10/1/2013...................................................... $ 2,000,000 $ 2,213,080
8.125%, 10/1/2021..................................................... 4,910,000 5,441,655
7.50%, 10/1/2027...................................................... 8,000,000 8,432,240
Romulus Economic Development Corp., Economic Development Revenue, Refunding
(HIR Limited Partnership Project)
7%, 11/1/2015 (Surety Bond; ITT Lyndon Property Co. Inc.)............... 5,000,000 5,410,250
Wayne Charter County, Special Airport Facilities Revenue, Refunding
(Northwest Airlines Inc.) 6.75%, 12/1/2015.............................. 5,650,000 5,770,176
MINNESOTA-1.2%
Southern Minnesota Municipal Power Agency, Power Supply System Revenue
5%, 1/1/2013 (Insured; FGIC)............................................ 10,000,000 9,597,900
MISSISSIPPI-.6%
Clairborne County, PCR, Refunding (System Energy Resources Inc.)
7.30%, 5/1/2025......................................................... 5,000,000 5,262,250
MISSOURI-.6%
Kansas City Municipal Assistance Corp., Revenue, Leasehold Refunding
(H. Roe Bartle Convention Center Project) 5%, 4/15/2020 (Insured; MBIA). 5,600,000 5,231,576
NEBRASKA-1.2%
Nebraska Higher Education Loan Program Inc., Revenue 6.40%, 6/1/2013........ 9,500,000 9,545,220
NEW HAMPSHIRE-2.9%
New Hampshire Higher Educational and Health Facilities Authority, Revenue
(Crotched Mountain Rehabilitation Center) 7.75%, 1/1/2020............... 2,200,000 2,406,712
New Hampshire Housing Finance Authority, Single Family Residential Mortgage:
7.75%, 7/1/2023......................................................... 6,720,000 7,154,045
7.70%, 7/1/2029......................................................... 4,480,000 4,773,754
New Hampshire Industrial Development Authority, PCR
(Public Service Company of New Hampshire Project) 7.65%, 5/1/2021....... 9,250,000 9,776,973
NEW JERSEY-1.5%
New Jersey Economic Development Authority, Solid Waste Disposal Facility
Revenue
(Garden State Paper Co. Inc. Project) 7.125%, 4/1/2022
(Guaranteed; Media General, Inc., LOC; Toronto-Dominion Bank) (a)....... 4,500,000 4,904,190
New Jersey Educational Facilities Authority, Revenue (Trenton State College)
5.125%, 7/1/2024 (Insured; MBIA)........................................ 8,000,000 7,587,600
NEW YORK-6.4%
City of New York 6.625%, 2/15/2025.......................................... 6,000,000 6,315,600
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenue
(State University Educational Facilities) 7.50%, 5/15/2013.............. $ 2,500,000 $ 3,015,375
New York State Energy Research and Development Authority, Electric Facilities
Revenue
(Long Island Lighting Co.):
7.15%, 9/1/2019....................................................... 6,785,000 7,034,417
7.15%, 6/1/2020....................................................... 11,500,000 11,922,740
7.15%, 12/1/2020...................................................... 6,000,000 6,220,560
6.90%, Series C, 8/1/2022............................................. 6,705,000 6,858,410
6.90%, Series D, 8/1/2022............................................. 2,655,000 2,715,746
New York State Local Government Assistance Corp., Refunding:
6%, 4/1/2014............................................................ 4,245,000 4,539,051
5%, 4/1/2021............................................................ 5,500,000 5,013,030
NORTH DAKOTA-1.2%
North Dakota Housing Finance Agency, SFMR:
7.30%, 7/1/2024......................................................... 4,385,000 4,592,893
7.75%, 7/1/2024 (Insured; MBIA)......................................... 4,865,000 5,150,235
OHIO-.3%
Cleveland, Parking Facilities Improvement Revenue 8.10%, 9/15/2022.......... 2,300,000 2,541,960
OKLAHOMA-3.6%
McGee Creek Authority, Water Revenue 6%, 1/1/2013 (Insured; MBIA)........... 6,025,000 6,543,210
Trustees of the Tulsa Municipal Airport Trust, Revenue
(American Airlines Inc. Project):
7.375%, 12/1/2020 (Guaranteed; AMR Corp.)............................. 9,850,000 10,578,112
7.60%, 12/1/2030...................................................... 12,000,000 13,108,320
PENNSYLVANIA-3.8%
Borough of Langhorne Manor Higher Education and Health Authority, HR
(The Lower Bucks Hospital) 7.30%, 7/1/2012.............................. 3,400,000 3,203,684
Lehigh County General Purpose Authority, Revenue (Wiley House)
9.50%, 11/1/2016........................................................ 3,500,000 3,780,630
Montgomery County Higher Education and Health Authority, Revenue
(Northwestern Corp.) 8.50%, 6/1/2016.................................... 3,000,000 3,169,380
Philadelphia Hospitals and Higher Education Facilities Authority, HR
Graduate Health Systems Obligation 7.25%, 7/1/2018...................... 11,000,000 11,512,490
Schuykill County Industrial Development Authority, RRR
(Schuykill Energy Resources Inc.) 6.50%, 1/1/2010....................... 9,430,000 9,626,710
RHODE ISLAND-2.6%
Rhode Island Depositors Economic Protection Corp., Special Obligation
Refunding
5.875%, 8/1/2011 (Insured; MBIA)........................................ 12,885,000 13,777,930
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
RHODE ISLAND (CONTINUED)
Rhode Island Housing and Mortgage Finance Corp.:
(Homeownership E-1) 7.55%, 10/1/2022.................................... $ 4,305,000 $ 4,586,590
(Rental Housing Program) 7.95%, 10/1/2020............................... 3,195,000 3,395,902
SOUTH CAROLINA-.5%
Georgetown County, HR, Refunding (Georgetown County Memorial Hospital)
7.25%, 11/1/2017 (Insured; AMBAC)....................................... 4,000,000 4,439,720
TEXAS-9.5%
Alliance Airport Authority Inc., Special Facilities Revenue
(American Airlines Inc. Project):
7%, 12/1/2011 (Guaranteed; AMR Corp.)................................. 10,000,000 10,981,800
7.50%, 12/1/2029...................................................... 14,805,000 16,023,155
Bell County Health Facilities Development Corp., Revenue
(Southern Healthcare-Southview) 10.50%, 3/1/2020........................ 2,905,000 3,246,628
Cypress - Fairbanks Independent School District, Refunding Zero Coupon, 2/15/2015 11,620,000 4,062,584
Dallas - Fort Worth International Airport Facility Improvement Corp., Revenue
(Delta Airlines Inc.):
7.625%, 11/1/2021..................................................... 2,200,000 2,399,826
7.125%, 11/1/2026..................................................... 5,000,000 5,246,950
Dickens County, Lease Obligation (Jail and Detention Facility Project)
8.875%, 4/1/2005........................................................ 3,950,000 4,224,012
Grand Prarie Independent School District 5.125%, 2/15/2020 (b).............. 5,000,000 4,723,300
Gulf Coast Waste Disposal Authority, SWDR (Champion International Corp.
Project)
7.25%, 4/1/2017......................................................... 4,735,000 5,103,951
Montgomery County Health Facilities Development Corp., Hospital Mortgage
Revenue
(Woodlands Medical Center Project) 8.85%, 8/15/2014..................... 6,825,000 7,462,933
Spring Branch Independent School District, Refunding 5%, 2/1/2018........... 8,000,000 7,518,000
Texas Municipal Power Agency, Revenue, Refunding
Zero Coupon, 9/1/2016 (Insured; MBIA)................................... 10,000,000 3,177,500
Texas Public Finance Authority, Revenue 5%, 8/1/2016 (Insured; AMBAC)....... 5,095,000 4,793,478
UTAH-2.1%
Carbon County, SWDR, Refunding (Sunnyside Cogeneration Project)
9.25%, 7/1/2018......................................................... 8,000,000 8,774,640
Murray City, HR, Refunding (IHC Health Services Inc.)
4.75%, 5/15/2020 (Insured; MBIA)........................................ 10,000,000 8,959,100
VIRGINIA-2.9%
Alexandria Redevelopment and Housing Authority, MFHR
(Buckingham Village Apartments) 6.15%, 1/1/2029......................... 5,000,000 4,957,650
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
VIRGINIA (CONTINUED)
Upper Occoquan Sewer Authority, Regional Sewer Revenue
5%, 7/1/2025 (Insured; MBIA) (c)........................................ $ 12,925,000 $12,014,822
State of Virginia, Refunding 5.125%, 6/1/2021............................... 7,000,000 6,731,060
WASHINGTON-3.7%
Chelan County Public Utility District Number 001, Consolidated Revenue
(Chelan Hydroelectric) 7.50%, 7/1/2011.................................. 4,155,000 4,863,386
State of Washington:
4.875%, 10/1/2015....................................................... 9,500,000 8,776,860
4.50%, 10/1/2018........................................................ 6,000,000 5,169,960
Washington Public Power Supply System (Nuclear Project Number 3)
7.125%, 7/1/2016........................................................ 10,000,000 11,641,900
WEST VIRGINIA-.2%
Kanawha County, IDR (Union Carbide Chemical and Plastics) 8%, 8/1/2020...... 1,930,000 2,091,116
______-
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $747,549,625)..................................................... $783,511,323
=======
SHORT-TERM MUNICIPAL INVESTMENTS-5.7%
FLORIDA-.3%
Pinellas County Health Facilities Authority, Revenue, Refunding, VRDN
(Pooled Hospital Loan Program) 3.40% (LOC; Chemical Bank) (a,d)......... $ 2,500,000 $ 2,500,000
INDIANA-.6%
Indianapolis, RRR, VRDN (Ogden Martin Systems) 3.55% (LOC; Swiss Bank) (a,d) 5,000,000 5,000,000
LOUSIANA-.3%
Parish of Ascension, Revenue, VRDN (BASF Corp. Project)
3.50% (Guaranteed; BASF Aktiengesellschaft) (d)......................... 2,600,000 2,600,000
MICHIGAN-1.2%
Midland County Economic Development Corp., Economic Development Revenue,
VRDN (Dow Chemical Co. Project):
3.50% Series A (Guaranteed; Dow Chemical Corp.) (d)................... 2,500,000 2,500,000
3.50% Series B (Guaranteed; Dow Chemical Corp.) (d)................... 7,000,000 7,000,000
MISSISSIPPI-.9%
Perry County, PCR, Refunding, VRDN (Leaf River Forest Project)
3.40% (LOC; Credit Suisse) (a,d)........................................ 7,700,000 7,700,000
NEW JERSEY-1.9%
New Jersey Economic Development Authority, Natural Gas Facilities Revenue,
Refunding, VRDN (New Jersey Natural Gas Co.)
3.30% (Insured; AMBAC, LOC; Union Bank of Switzerland) (a,d)............ 8,400,000 8,400,000
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 29, 1996
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW JERSEY (CONTINUED)
New Jersey Sports and Exposition Authority, VRDN
3.10% (Insured; MBIA, SBPA; Barclays Bank p.l.c.) (d)................... $ 7,700,000 $ 7,700,000
NEW YORK-.3%
City of New York, VRDN:
3.35% (Insured; MBIA) (d)............................................... 300,000 300,000
3.45% (LOC; Sumitomo Bank) (a,d)........................................ 2,000,000 2,000,000
PENNSYLVANIA-.2%
Delaware County Industrial Development Authority, PCR, VRDN
(BP Oil Inc. Project) 3.45% (Guaranteed; Standard Oil Inc.) (d)......... 1,700,000 1,700,000
______-
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $47,400,000)...................................................... $47,400,000
=======
TOTAL INVESTMENTS-100.0%
(cost $794,949,625)..................................................... $830,911,323
=======
</TABLE>
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
HR Hospital Revenue RRR Resources Recovery Revenue
IDR Industrial Development Revenue SBPA Standby Bond Purchase Agreement
LOC Letter of Credit SFMR Single-Family Mortgage Revenue
MBIA Municipal Bond Investors Assurance SWDR Solid Waste Disposal Revenue
Insurance Corporation VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
____- ____- __________ ___________-
<S> <C> <C> <C>
AAA Aaa AAA 25.7%
AA Aa AA 14.9
A A A 8.1
BBB Baa BBB 24.3
BB Ba BB 10.7
F1 Mig1 SP1 5.7
Not Rated (f) Not Rated (f) Not Rated (f) 10.6
____
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Purchased on a when-issued basis.
(c) Partially held in segregated account for the purpose of
collateralizing delayed delivery security.
(d) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's, have been determined by the Manager to be of comparable quality
to those rated securities in which the Fund may invest.
<TABLE>
<CAPTION>
STATEMENT OF FINANCIAL FUTURES FEBRUARY 29,1996
FINANCIAL FUTURES SOLD SHORT
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
ISSUER CONTRACTS BY CONTRACTS EXPIRATION AT 2/29/96
___- ______ _______ ______- ______-
<S> <C> <C> <C> <C>
Treasury Note Index Futures.................. 50 ($5,537,500) June `96 $1,563
===
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 29, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $794,949,625)-see statement..................................... $830,911,323
Cash.................................................................... 30,581,895
Receivable for investment securities sold............................... 20,265,786
Interest receivable..................................................... 13,338,530
Prepaid expenses........................................................ 25,392
______-
895,122,926
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 509,000
Due to Distributor...................................................... 24,071
Payable for investment securities purchased............................. 27,125,886
Payable for Common Stock redeemed....................................... 95,734
Payable for futures variation margin-Note 3(a).......................... 3,276
Accrued expenses........................................................ 208,283 27,966,250
______ ______-
NET ASSETS ................................................................ $867,156,676
=======
REPRESENTED BY:
Paid-in capital......................................................... $818,056,145
Accumulated undistributed net realized gain on investments.............. 13,137,270
Accumulated net unrealized appreciation on investments (including $1,563
net unrealized appreciation on financial futures)-Note 3(b)........... 35,963,261
______-
NET ASSETS at value applicable to 57,827,182 shares outstanding
(150 million shares of $.01 par value Common Stock authorized).......... $867,156,676
=======
NET ASSET VALUE, offering and redemption price per share
($867,156,676 / 57,827,182 shares)...................................... $15.00
=======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED FEBRUARY 29, 1996
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $57,202,418
EXPENSES:
Management fee-Note 2(a).............................................. $ 4,930,893
Shareholder servicing costs-Note 2(b)................................. 2,381,332
Professional fees..................................................... 121,273
Custodian fees........................................................ 86,585
Registration fees..................................................... 72,132
Prospectus and shareholders' reports.................................. 60,574
Directors' fees and expenses-Note 2(c)................................ 52,687
Miscellaneous......................................................... 175,046
______
TOTAL EXPENSES.................................................... 7,880,522
______
INVESTMENT INCOME-NET............................................. 49,321,896
______
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments-Note 3(a).............................. $19,782,164
Net realized (loss) on financial futures-Note 3(a)...................... (396,345)
______
NET REALIZED GAIN....................................................... 19,385,819
Net unrealized appreciation on investments (including $1,563
net unrealized appreciation on financial futures)..................... 22,685,253
______
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 42,071,072
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $91,392,968
======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
GENERAL MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED
_________________-_________________-
FEBRUARY 28, FEBRUARY 29,
1995 1996
_______- _______-
<S> <C> <C>
Investment income-net............................................. $ 57,666,000 $ 49,321,896
Net realized gain (loss) investments.............................. (4,959,759) 19,385,819
Net unrealized appreciation (depreciation) on investments for the year (63,932,877) 22,685,253
_______- _______-
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS............................................. (11,226,636) 91,392,968
_______- _______-
DIVIDENDS TO SHAREHOLDERS:
From investment income-net........................................ (57,666,000) (49,321,896)
From net realized gain on investments............................. (8,389,176) (1,284,955)
In excess of net realized gain on investments..................... (3,835) _-
_______- _______-
TOTAL DIVIDENDS................................................. (66,059,011) (50,606,851)
_______- _______-
CAPITAL SHARE TRANSACTIONS:
Net proceeds from shares sold..................................... 1,520,860,174 2,501,610,587
Dividends reinvested.............................................. 46,870,459 35,154,871
Cost of shares redeemed........................................... (1,796,983,645) (2,644,671,673)
_______- _______-
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........ (229,253,012) (107,906,215)
_______- _______-
TOTAL (DECREASE) IN NET ASSETS.............................. (306,538,659) (67,120,098)
NET ASSETS:
Beginning of year................................................. 1,240,815,433 934,276,774
_______- _______-
End of year....................................................... $ 934,276,774 $ 867,156,676
======== ========
SHARES SHARES
_______- _______-
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 106,215,275 168,963,391
Shares issued for dividends reinvested............................ 3,273,509 2,367,210
Shares redeemed................................................... (125,075,831) (178,155,527)
_______- _______-
NET (DECREASE) IN SHARES OUTSTANDING............................ (15,587,047) (6,824,926)
======== ========
</TABLE>
See notes to financial statements.
GENERAL MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
FISCAL YEAR ENDED FEBRUARY,
____________________________________________________________
PER SHARE DATA: 1992 1993 1994 1995 1996
___- ___- ___- ___- ___-
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $14.02 $14.60 $15.74 $15.46 $14.45
___- ___- ___- ___- ___-
INVESTMENT OPERATIONS:
Investment income-net........................ 1.06 .97 .90 .86 .82
Net realized and unrealized gain (loss)
on investments............................. .62 1.29 (.04) (.89) .57
___- ___- ___- ___- ___-
TOTAL FROM INVESTMENT OPERATIONS....... 1.68 2.26 .86 (.03) 1.39
___- ___- ___- ___- ___-
DISTRIBUTIONS:
Dividends from investment income-net......... (1.06) (.97) (.91) (.86) (.82)
Dividends from net realized gain on investments (.04) (.15) (.23) (.12) (.02)
Dividends in excess of net realized gain
on investments............................. - - - -* -
___- ___- ___- ___- ___-
TOTAL DISTRIBUTIONS.................... (1.10) (1.12) (1.14) (.98) (.84)
___- ___- ___- ___- ___-
Net asset value, end of year................. $14.60 $15.74 $15.46 $14.45 $15.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 12.34% 16.13% 5.50% .07% 9.79%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .01% .41% .82% .87% .88%
Ratio of net investment income to average
net assets................................. 7.30% 6.46% 5.71% 5.99% 5.50%
Decrease reflected in above expense ratios due to
undertakings by the Manager................ . .75% .35% .03% - -
Portfolio Turnover Rate...................... 38.15% 64.98% 59.19% 67.87% 114.78%
Net Assets, end of year (000's Omitted)...... $720,395 $1,238,291 $1,240,815 $934,277 $867,157
*Amount represents less than $.01 per share.
</TABLE>
See notes to financial statements.
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
General Municipal Bond Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company. The Fund's investment objective is to maximize current
income exempt from Federal income tax to the extent consistent with the
preservation of capital. The Dreyfus Corporation ("Manager") serves as the
Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A. Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares, which are sold to the public without a
sales load.
(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Directors. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the average
daily value of the Fund's net assets and is payable monthly. The Agreement
provides for an expense reimbursement from the Manager should the Fund's
aggregate expenses, exclusive of taxes, brokerage, interest on borrowings and
extraordinary expenses, exceed 11\2% of the average value of the Fund's net
assets for any full fiscal year. There was no expense reimbursement for the
year ended February 29, 1996.
(B) Under a Service Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to
certain Service Agents for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and any affiliate of
either of them (collectively, "Dreyfus") for advertising and marketing
relating to the Fund and for Servicing, at an aggregate annual rate of .20 of
1% of the value of the Fund's average daily net assets. Both the Distributor
and Dreyfus may pay one or more Service Agents a fee in respect of the Fund's
shares owned by shareholders with whom the Service Agent has a Servicing
relationship or for whom the Service Agent is the dealer or holder of record.
Both the Distributor and Dreyfus determine the amounts, if any, to be paid to
Service Agents under the Service Plan and the basis on which such payments
are made. The fees payable under the Service Plan are payable without regard
to actual expenses incurred. The Plan also separately provides for the Fund
to bear the costs of preparing, printing and distributing certain of the
Fund's prospectuses and statements of additional information and costs associa
ted with implementing and operating the Plan, not to exceed the greater of
$100,000 or .005 of 1% of the Fund's average daily net assets for any full
fiscal year. During the year ended February 29, 1996, $1,812,416 was charged
to the Fund pursuant to the Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $94,551 for the period from
December 1, 1995, through February 29, 1996.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $4,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
(A) The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended February 29, 1996,
amounted to $957,504,007 and $1,055,074,351, respectively.
The Fund may invest in financial futures contracts in order to gain
exposure to or protect against changes in the market. The Fund is exposed to
market risk as a result of changes in the value of the underlying financial
instruments. Investments in financial futures require the Fund to "mark to
market" on a daily basis, which reflects the change in the market value of
the contract at the close of each day's trading. Accordingly, variation
margin payments are received or made to reflect daily unrealized gains or
GENERAL MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
losses. When the contracts are closed, the Fund recognizes a realized gain or
loss. These investments require initial margin deposits with a custodian,
which consist of cash or cash equivalents, up to approximately 10% of the
contract amount. The amount of these deposits is determined by the exchange
or Board of Trade on which the contract is traded and is subject to change.
Contracts open at February 29, 1996 and their related unrealized market
appreciation are set forth in the Statement of Financial Futures.
(B) At February 29, 1996, accumulated net unrealized appreciation on
investments was $35,963,261, consisting of $39,764,997 gross unrealized
appreciation and $3,801,736 gross unrealized depreciation.
At February 29, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
GENERAL MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
GENERAL MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
General Municipal Bond Fund, Inc., including the statements of investments
and financial futures, as of February 29, 1996, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of February 29, 1996 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of General Municipal Bond Fund, Inc. at February 29, 1996, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
March 29, 1996
GENERAL MUNICIPAL BOND FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended
February 29, 1996 as "exempt-interest dividends" (not generally subject to
regular Federal income tax).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1996 calendar year
on Form 1099-DIV which will be mailed by January 31, 1997.
[Dreyfus lion "d" logo]
GENERAL MUNICIPAL
BOND FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 106AR962
[Dreyfus logo]
General Municipal
Bond Fund, Inc.
Annual Report
February 29, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN
GENERAL MUNICIPAL BOND FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
___________________________________________________________
| | LEHMAN | |
| | BROTHERS | GENERAL |
| PERIOD | MUNICIPAL | MUNICIPAL |
| | BOND INDEX * | BOND FUND |
|----------------- | ----------------- | -------------|
| 2/28/86 | 10,000 | 10,000 |
| 2/28/87 | 11,219 | 11,146 |
| 2/29/88 | 11,514 | 10,825 |
| 2/28/89 | 12,229 | 11,707 |
| 2/28/90 | 13,483 | 12,992 |
| 2/28/91 | 14,726 | 14,167 |
| 2/29/92 | 16,197 | 15,915 |
| 2/28/93 | 18,426 | 18,482 |
| 2/28/94 | 19,446 | 19,498 |
| 2/28/95 | 19,812 | 19,513 |
| 2/29/96 | 22,001 | 21,429 |
|----------------------------------------------------------|
*Source: Lehman Brothers
