<PAGE> PAGE 1
000 B000000 07/31/97
000 C000000 0000055614
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 KEYSTONE HIGH INCOME BOND FUND (B-4)
001 B000000 811-095
001 C000000 6173383200
002 A000000 200 BERKELEY STREET
002 B000000 BOSTON
002 C000000 MA
002 D010000 02116
002 D020000 5034
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 KEYSTONE INVESTMENT MANAGEMENT CO.
008 B000001 A
008 C000001 801-8327
008 D010001 BOSTON
008 D020001 MA
008 D030001 02116
010 A000001 EVERGREEN KEYSTONE INVESTMENT SERVICES, INC
010 C010001 BOSTON
010 C020001 MA
010 C030001 02116
010 C040001 5034
010 A000002 THE BISYS GROUP, INC.
010 C010002 COLUMBUS
010 C020002 OH
010 C030002 99999
011 A000001 EVERGREEN KEYSTONE DISTRIBUTOR, INC.
011 B000001 8-395
011 C010001 BOSTON
<PAGE> PAGE 2
011 C020001 MA
011 C030001 02116
011 C040001 5034
012 A000001 EVERGREEN KEYSTONE SERVICE COMPANY
012 B000001 84-1571
012 C010001 BOSTON
012 C020001 MA
012 C030001 02116
012 C040001 5034
013 A000001 KPMG PEAT MARWICK LLP
013 B010001 BOSTON
013 B020001 MA
013 B030001 02110
015 A000001 STATE STREET BANK & TRUST
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02110
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 78
019 C000000 EVERGREENS
020 A000001 INSTINET CORP.
020 C000001 2
020 A000002 OPPENHEIMER & COMPANY, INC.
020 C000002 1
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 3
022 A000001 GOLDMAN SACHS
022 C000001 309320
022 D000001 0
022 A000002 BANK OF NEW YORK
022 C000002 42529
022 D000002 0
022 A000003 PRUDENTIAL BACHE
022 C000003 30700
022 D000003 0
022 A000004 FUJI SECURITIES
022 C000004 30406
022 D000004 0
022 A000005 AUBREY G LANSTON
022 C000005 27186
022 D000005 0
<PAGE> PAGE 3
022 A000006 HSBC SECURITIES
022 C000006 22251
022 D000006 0
022 A000007 CS FIRST BOSTON
022 C000007 20173
022 D000007 0
022 A000008 SEARS ROEBUCK
022 C000008 5523
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 4507576
023 D000000 0
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 8221
028 A020000 2130
028 A030000 0
028 A040000 18077
028 B010000 5165
028 B020000 2047
028 B030000 0
028 B040000 31798
028 C010000 8182
028 C020000 1934
028 C030000 0
028 C040000 20490
028 D010000 15679
028 D020000 0
028 D030000 0
028 D040000 13091
028 E010000 10453
<PAGE> PAGE 4
028 E020000 1941
028 E030000 0
028 E040000 9868
028 F010000 4686
028 F020000 3822
028 F030000 0
028 F040000 12622
028 G010000 52386
028 G020000 11874
028 G030000 0
028 G040000 105946
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 92.2
062 Q000000 2.5
062 R000000 5.3
071 A000000 747418
071 B000000 827179
071 C000000 541218
071 D000000 138
072 A000000 12
074 N000000 557761
074 T000000 547390
075 A000000 0
075 B000000 569290
077 A000000 Y
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 B000000 NONE
080 C000000 50000
081 A000000 Y
081 B000000 78
082 A000000 N
082 B000000 0
<PAGE> PAGE 5
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
SIGNATURE J. KEVIN KENELY
TITLE V.P. FUND ADMIN
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> KEYSTONE HIGH INCOME BOND FUND (B-4) CLASS A
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-START> AUG-01-1996
<PERIOD-END> JUL-31-1997
<INVESTMENTS-AT-COST> 534,601,421
<INVESTMENTS-AT-VALUE> 533,546,054
<RECEIVABLES> 21,699,023
<ASSETS-OTHER> 2,516,094
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 557,761,171
<PAYABLE-FOR-SECURITIES> 7,676,756
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,694,414
<TOTAL-LIABILITIES> 10,371,170
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,013,342,157
<SHARES-COMMON-STOCK> 125,390,766
<SHARES-COMMON-PRIOR> 144,797,055
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,468,219)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (463,428,580)
<ACCUM-APPREC-OR-DEPREC> (1,055,357)
<NET-ASSETS> 547,390,001
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 54,072,359
<OTHER-INCOME> 466,791
<EXPENSES-NET> (11,105,091)
<NET-INVESTMENT-INCOME> 43,434,059
<REALIZED-GAINS-CURRENT> 3,963,269
<APPREC-INCREASE-CURRENT> 33,119,281
<NET-CHANGE-FROM-OPS> 80,516,609
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (44,757,060)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 32,280,201
<NUMBER-OF-SHARES-REDEEMED> (57,681,924)
<SHARES-REINVESTED> 5,995,434
<NET-CHANGE-IN-ASSETS> (46,290,745)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (1,700,454)
<OVERDIST-NET-GAINS-PRIOR> (505,253,675)
<GROSS-ADVISORY-FEES> (3,259,222)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (11,105,091)
<AVERAGE-NET-ASSETS> 569,289,649
<PER-SHARE-NAV-BEGIN> 4.10
<PER-SHARE-NII> 0.32
<PER-SHARE-GAIN-APPREC> 0.28
<PER-SHARE-DIVIDEND> (0.33)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 4.37
<EXPENSE-RATIO> 1.96
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Trustees and Shareholders
Keystone High Income Bond Fund (B-4)
In planning and performing our audit of the financial statements of Keystone
High Income Bond Fund (B-4) for the year ended July 31, 1997, we considered its
internal control structure, including procedures for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control structure.
The management of Keystone High Income Bond Fund (B-4) is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risks that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
July 31, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
September 5, 1997