DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
For its annual reporting period ended May 31, 1996, the Dreyfus New York
Tax Exempt Bond Fund, Inc. produced a total return of 1.84%.* Income
dividends exempt from Federal, New York State and New York City personal
income taxes of approximately $.790 per share** were paid which is equivalent
to an annualized tax-free distribution rate per share of 5.37%.***
THE ECONOMY
Recent economic reports show that the economy continues to recover from
its year-end 1995 pause. Spurred by a surge in consumer and business
spending, the annualized Gross Domestic Product grew at a moderate 2.3%
during the first quarter of this year. The Index of Leading Economic
indicators, a major forecasting index, extended its string of increases for
the third consecutive month in April, the first such advance since late 1993.
Despite a sharp jump in energy prices, inflation remained in check. For the
12 months ended in May, consumer prices rose 2.9%. Giving further evidence of
moderating prices, a survey released in May by the National Business Council
revealed greater difficulty for major industrial companies to raise prices
now than six months ago.
Despite the relatively benign level of inflation, the economy's expansion
has sparked concerns that the Federal Reserve Board could raise short-term
interest rates. In reaction to this possibility, long-term rates have risen
since the beginning of the year. So far, the Fed has refrained from
tightening monetary policy, apparently interpreting economic data to mean
that the economy remains on a path of moderate growth unaccompanied by a
surge in inflation. However, the strong May employment data has caused some
investors to fear that the Fed will not continue to remain inactive for long.
There is now a greater consensus view that the Fed will tighten eventually in
order to prevent unacceptable levels of price inflation from coming on the
heels of economic growth.
Consumers, who account for over two-thirds of our country's Gross
Domestic Product (GDP), are vital contributors to economic growth. So far,
they have continued to spend, setting aside concerns about job security and
stagnating real wages in favor of current consumption. New-home sales, an
important component of consumer spending, continued to post gains throughout
the reporting period, and retail sales in general rose above 6% over the year
ended April 30. Additional encouragement to consumers occurred when the Labor
Department recently reported a continuation of the declining trend in
first-time jobless claims.
On the corporate side of the economy, capacity utilization inched higher
and is now at 83.2%. While still well below the peak level (85.1%) for this
economic expansion which was reached over a year ago, further growth in this
indicator may result in shortages that could produce higher prices. Following
the GM strike-induced slowdown in March, industrial production has risen,
bringing the year-over-year gain to a solid 3.3% through May.
We remain alert to early signs of growing inflationary pressures that
might cause the Federal Reserve to raise interest rates. To date, prices are
still being kept under control. However, we are especially watchful regarding
the potential buildup in wage pressures given the rising trend in both
corporate output and capacity utilization.
MARKET ENVIRONMENT
Since our last report as of November 30, 1995, tax exempt bond yields are
approximately 50 basis points higher, reflecting the weakening in bond prices
in response to the strengthening domestic economy. With long-term U.S.
Government bond yields currently in excess of 7%, and municipal bonds
offering 6% (tax exempt), some investors are now beginning to take notice.
The market is trying to anticipate what the Federal Reserve will do in light
of the strong economic numbers during the first half of the year. It is the
general consensus that should the Fed act sooner rather than later to undo the
easing moves undertaken last winter, the economy will slow and bond prices will
rally. With the Presidential election looming on the horizon, politics could
play a role in any Fed decision to change policy.
The technical picture of the municipal bond market looks very encouraging
at this time. Seasonally, we are now approaching a very heavy period for bond
maturities and redemptions; with a moderate calendar of new issues, there
will be fewer bonds available for reinvestment. This fact is currently
reflected in the better price performance of tax exempts relative to taxable
securities.
THE PORTFOLIO
The fixed-income market has experienced considerable volatility since
January. On an after-tax basis, the municipal market has offered very
attractive returns when compared to the Treasury market. In January, 15-year
AAA general obligation bonds yielded approximately 88% of comparable
Treasuries: that has since corrected, and we have returned to ratios of
approximately 81%, which represent an historically more typical relationship.
Past performance is no guarantee of future results. This volatility occurred
for several reasons, including the strong appeal of the stock market for
investors' dollars; the fallout from the default of Orange County, California
(AAA prior to default); and the ongoing concern over tax reform. The duration
of the Fund was longer than the relevant benchmark indices in the early part
of 1996, and therefore experienced more volatility during the first quarter.
This increased volatility proved somewhat unfavorable to your Fund's
performance when compared to other funds in its category. However, the
flatness in the yield curve enabled us to move from the long end of the
maturity range and into the 20-year range with a minimum of sacrifice in
yield. A portion was moved into the shorter end of the market, and, as the
yield curve steepens, we will take advantage of the gains.
The New York market has seen price improvement resulting from a
tightening in quality spreads. Issues such as New York City, which had
yielded 100% of Treasury bonds' yields, are now trading at a lower ratio.
Retail demand continues to be strong for New York paper. As of this writing,
the New York State budget stalemate continues, making this the longest
deadlock in State history.
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
June 14, 1996
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**Some income may be subject to State and local taxes for non-New York
residents and 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.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC. MAY 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS NEW YORK TAX
EXEMPT
BOND FUND, INC. AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
[Exhibit A:
Dollars
$21,985
Lehman Brothers
Municipal Bond Index*
$19,552
Dreyfus New York
Tax Exempt Bond Fund
*Source: Lehman Brothers]
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED TEN YEARS ENDED
MAY 31, 1996 MAY 31, 1996 MAY 31, 1996
________ _________ _________
<S> <C> <C>
1.84% 6.64% 6.94%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus New York Tax
Exempt Bond Fund, Inc. on 5/31/86 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 New York 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,
geographically unrestricted 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. Also, unlike the Fund which principally limits investments to New
York municipal obligations, the Index is not State specific. These factors
can contribute to the Index potentially outperforming the Fund. 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>
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-99.5% AMOUNT VALUE
________ ________
<S> <C> <C>
NEW YORK-93.5%
Alleghany County Industrial Development Agency, Solid Waste Disposal Facility
Revenue
(Atlantic Richfield Co. Facility) 6.625%, 9/1/2016...................... $ 5,600,000 $ 5,770,520
Cohoes Industrial Development Agency, IDR (Norlite Corp. Project)
6.75%, 5/1/2009 (LOC; Dresdner Bank)(a)................................. 5,000,000 5,203,900
Essex County Industrial Development Agency, SWDR (International Paper Co.
Projects)
5.80%, 12/1/2019........................................................ 5,500,000 5,267,625
Metropolitan Transportation Authority:
Commuter Facilities, Service Contract 6%, 7/1/2016 (Insured; FGIC)...... 9,000,000 8,942,400
Transit Facilities Revenue 5.50%, 7/1/2022 (Insured; FGIC).............. 24,000,000 22,441,440
Transit Facilities, Service Contract:
7.125%, 7/1/2009...................................................... 5,000,000 5,431,300
5.75%, 7/1/2015....................................................... 10,000,000 9,304,600
7.50%, 7/1/2019 (Prerefunded 7/1/2000)(b)............................. 7,700,000 8,607,522
Municipal Assistance Corporation for City of New York, Refunding 5.50%, 7/1/2001 19,765,000 20,422,186
Nassau County Industrial Development Agency, IDR
(Hofstra University Project) 8.25%, 7/1/2003 (Prerefunded 7/1/1998)(b).. 3,000,000 3,240,090
New York City:
7.50%, 2/1/2003......................................................... 3,500,000 3,833,900
6.375%, 8/1/2004........................................................ 16,000,000 16,558,560
7.50%, 2/1/2006......................................................... 4,000,000 4,388,720
5.75%, 2/1/2007......................................................... 22,305,000 21,511,165
5.75%, 8/15/2008........................................................ 5,000,000 4,749,350
6.25%, 8/1/2009......................................................... 10,500,000 10,364,760
7.50%, 3/15/2010........................................................ 2,340,000 2,515,172
6.25%, 8/1/2010......................................................... 10,000,000 9,878,800
7%, 10/1/2010........................................................... 3,955,000 4,151,484
3.65%, 8/1/2011......................................................... 18,775,000 16,702,991
6.25%, 8/1/2011 (Insured; FSA) (Prerefunded 8/1/2002)(b)................ 3,950,000 4,295,388
5.75%, 8/15/2011........................................................ 8,870,000 8,289,281
6.85%, 10/1/2013........................................................ 5,000,000 5,103,850
5.875%, 3/15/2018....................................................... 6,130,000 5,622,803
5.75%, 2/1/2020......................................................... 6,525,000 5,861,146
7.50%, 8/1/2021......................................................... 5,000,000 5,486,200
Refunding:
7.50%, 3/15/2010 (Prerefunded 3/15/2000)(b)........................... 7,660,000 8,490,650
6.375%, 8/15/2012..................................................... 18,000,000 17,881,200
New York City Industrial Development Agency, Special Facility Revenue
(Terminal One Group Assoc., L.P. Project) 6.125%, 1/1/2024.............. 41,575,000 40,282,849
New York City Municipal Water Finance Authority, Water and Sewer Systems
Revenue:
7%, 6/15/2015 (Prerefunded 6/15/2001)(b)................................ 5,655,000 6,251,715
5.50%, 6/15/2019........................................................ 5,090,000 4,676,335
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
NEW YORK (CONTINUED)
New York City Municipal Water Finance Authority,
Water and Sewer Systems Revenue (continued):
5.50%, 6/15/2020...................................................... $ 29,835,000 $27,328,561
6.20%, 6/15/2021 (Insured; AMBAC)..................................... 9,700,000 9,863,930
State of New York:
5.875%, 3/15/2014....................................................... 3,000,000 3,002,070
5.75%, 6/15/2026 (Insured; MBIA)........................................ 25,000,000 24,050,000
5.875%, 6/15/2026....................................................... 8,750,000 8,439,287
COP Commissioner Office of Mental Health 8.30%, 9/1/2012................ 4,000,000 4,236,000
Environmental Quality 5%, 1/15/2014..................................... 7,670,000 6,869,099
Refunding:
5.625%, 8/15/2009..................................................... 15,000,000 15,023,250
5.70%, 8/15/2011...................................................... 4,500,000 4,488,255
6.125%, 11/15/2011.................................................... 3,130,000 3,217,107
5.80%, 10/1/2013...................................................... 4,715,000 4,703,825
5.625%, 10/1/2020..................................................... 5,175,000 4,924,633
New York State Dormitory Authority, Revenues:
(City University Systems):
6.375%, 7/1/2008...................................................... 7,070,000 7,171,879
7%, 7/1/2009.......................................................... 8,500,000 9,218,165
5.60%, 7/1/2010....................................................... 12,000,000 11,348,880
7.50%, 7/1/2010 (Insured; FGIC)....................................... 5,000,000 5,930,250
5.75%, 7/1/2013....................................................... 4,100,000 3,888,440
5.625%, 7/1/2016...................................................... 11,120,000 10,312,466
5.75%, 7/1/2018....................................................... 36,410,000 34,181,344
5%, 7/1/2020.......................................................... 50,500,000 41,579,175
(Columbia University) 5.75% 7/1/2009.................................... 10,000,000 10,348,600
(Cornell University) 7.375%, 7/1/2030................................... 11,785,000 12,964,796
Department of Health:
5.75%, 7/1/2017....................................................... 17,010,000 15,785,450
5.50%, 7/1/2025....................................................... 35,080,000 30,871,803
Refunding 5.50%, 7/1/2014............................................. 10,000,000 9,058,100
Lease Court Facilities 5.70%, 5/15/2022................................. 5,000,000 4,550,750
Mental Health Services Facility Improvement 5.375%, 2/15/2026........... 17,550,000 15,221,993
(New York Medical College) 6.875%, 7/1/2021 (Insured; AGIC)............. 19,310,000 20,601,067
(State University) 7.60%, 7/1/2018 (Prerefunded 7/1/1998)(b)............ 3,000,000 3,259,650
Educational Facilities:
7.25%, 5/15/2008 (Prerefunded 5/15/2000)(b)....................... 11,590,000 12,840,329
5.875%, 5/15/2011................................................. 20,000,000 19,324,400
7.50%, 5/15/2011.................................................. 3,750,000 4,270,050
5.50%, 5/15/2013.................................................. 16,035,000 14,780,101
6.375%, 5/15/2014................................................. 7,110,000 7,072,175
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenues (continued):
(State University) (continued):
Educational Facilities (continued):
7.375%, 5/15/2014 (Prerefunded 5/15/2000)(b)...................... $ 10,155,000 $11,317,240
5.25%, 5/15/2015.................................................. 12,500,000 11,103,375
7%, 5/15/2018 (Prerefunded 5/15/2000)(b).......................... 16,060,000 17,649,138
7.25%, 5/15/2018 (Prerefunded 5/15/2002)(b)....................... 16,065,000 18,311,208
6%, 5/15/2022..................................................... 5,025,000 4,750,736
Refunding 7.375%, 5/15/2014....................................... 12,945,000 14,148,367
(Upstate Community College) 5.70%, 7/1/2021............................. 12,290,000 11,200,492
New York State Energy Research and Development Authority:
Electric Facilities Revenue:
(Consolidated Edison Co. Project) 7.375%, 7/1/2024.................... 7,000,000 7,377,580
(Long Island Lighting Co. Project):
7.15%, 9/1/2019................................................... 12,230,000 12,087,521
7.15%, 12/1/2020.................................................. 14,650,000 14,478,302
7.15%, 2/1/2022................................................... 5,000,000 4,940,250
Facilities Revenue (Consolidated Edison Co. Project):
6.375%, 12/1/2027..................................................... 9,465,000 9,466,704
7.125%, 12/1/2029..................................................... 13,000,000 14,365,910
Gas Facilities Revenue (Brooklyn Union Gas Co. Project)
5.50%, 1/1/2021 (Insured; MBIA)....................................... 16,000,000 15,045,920
SWDR (New York State Electric and Gas Co. Project) 5.70%, 12/1/2028..... 17,320,000 16,380,390
New York State Environmental Facilities Corp.:
SWDR (Occidental Petroleum Corp. Project)
6.10%, 11/1/2030 (Guaranteed; Occidental Petroleum Corp.)............. 5,000,000 4,771,450
State Water Pollution Control Revolving Fund Revenue
(New York City Municipal Water Finance Authority Project):
6.875%, 6/15/2010................................................. 21,340,000 23,278,312
7.25%, 6/15/2010.................................................. 16,065,000 17,913,760
7%, 6/15/2012..................................................... 21,660,000 23,601,819
New York State Housing Finance Agency, Revenue:
Health Facilities Refunding:
5.875%, 5/1/2004...................................................... 6,500,000 6,457,035
6%, 5/1/2008.......................................................... 10,000,000 9,693,600
Insured Multi-Family Mortgage 7%, 8/15/2022............................. 4,495,000 4,711,210
Multi-Family Housing Second Mortgage 6.95%, 8/15/2024 (Insured; FHA).... 2,940,000 3,058,717
Service Contract Obligation:
6.375%, 9/15/2015..................................................... 5,000,000 4,977,450
5.50%, 9/15/2022...................................................... 4,000,000 3,514,600
Refunding 5.375%, 9/15/2011........................................... 13,520,000 12,088,773
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
NEW YORK (CONTINUED)
New York State Local Government Assistance Corp.:
7%, 4/1/2005............................................................ $ 4,300,000 $ 4,727,678
5.50%, 4/1/2021......................................................... 10,000,000 9,230,700
5.50%, 4/1/2023......................................................... 7,000,000 6,443,850
6%, 4/1/2024............................................................ 10,000,000 9,767,700
Refunding 5%, 4/1/2021.................................................. 22,140,000 19,030,880
New York State Medical Care Facilities Finance Agency, Revenue:
FHA Insured Mortgage:
(Montefiore Medical Center) 5.75%, 2/15/2015 (Insured; AMBAC)......... 8,750,000 8,519,525
(New York Hospital) 6.50%, 8/15/2029 (Insured; AMBAC)................. 12,000,000 12,533,160
(Saint Lukes Hospital) 7.45%, 2/15/2029 (Prerefunded 2/15/2000)(b).... 10,000,000 11,122,700
Hospital and Nursing Home FHA Insured Mortgage:
6.45%, 2/15/2009...................................................... 6,325,000 6,657,379
6.85%, 2/15/2012...................................................... 6,000,000 6,338,640
6.125%, 2/15/2015..................................................... 13,270,000 13,268,540
7.45%, 8/15/2031...................................................... 4,250,000 4,612,823
(Presbyterian Hospital) Refunding 5.375%, 2/15/2025 (Insured; MBIA)... 8,315,000 7,580,370
Insured Long Term Health Care 6.45%, 11/1/2010 (Insured; FSA)........... 11,660,000 12,257,342
Mental Health Services:
5.375%, 8/15/2013 (Insured; FGIC)..................................... 10,000,000 9,436,400
5.80%, 8/15/2022 (Insured; AMBAC)..................................... 14,515,000 14,085,791
5.25%, 8/15/2023 (Insured; FGIC)...................................... 18,575,000 16,636,513
Refunding, Custodial Receipts:
5.375%, 2/15/2014 (Insured; FSA).................................. 16,000,000 15,024,800
5.25%, 2/15/2019 (Insured; FSA) (Prerefunded 2/15/2004)(b)........ 17,015,000 15,452,002
5.25%, 2/15/2019 (Insured; FGIC).................................. 39,060,000 35,516,867
Mental Health Services Facilities Improvement
6%, 2/15/2025 (Insured; MBIA)......................................... 8,710,000 8,574,298
New York State Mortgage Agency, Homeowner Mortgage Revenue:
5.50%, 4/1/2019......................................................... 5,000,000 4,777,550
6.60%, 10/1/2019........................................................ 10,685,000 11,034,186
6.45%, 10/1/2020........................................................ 17,315,000 17,669,958
6.625%, 4/1/2025........................................................ 7,135,000 7,313,589
6.20%, 10/1/2026........................................................ 28,100,000 27,793,991
New York State Power Authority, Revenue and General Purpose
6.625%, 1/1/2012........................................................ 5,690,000 6,119,197
New York State Thruway Authority:
Highway and Bridge Trust Fund 5.50%, 4/1/2015 (Insured; MBIA)........... 10,550,000 10,101,942
Service Contract Revenue (Local Highway and Bridge):
7.25%, 1/1/2010 (Prerefunded 1/1/2001)(b)............................. 13,000,000 14,496,430
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
NEW YORK (CONTINUED)
New York State Thruway Authority (continued):
Service Contract Revenue (Local Highway and Bridge) (continued):
6%, 4/1/2010.......................................................... $ 5,980,000 $5,775,245
5.75%, 4/1/2013 (Insured; MBIA)....................................... 11,185,000 11,142,273
6.25%, 4/1/2014....................................................... 11,645,000 11,405,113
New York State Urban Development Corp., Revenue Refunding:
(Correctional Capital Facilities):
5.50%, 1/1/2016....................................................... 33,885,000 30,488,029
5.50%, 1/1/2018....................................................... 5,000,000 4,463,700
5.375%, 1/1/2025...................................................... 11,635,000 10,058,341
5.50%, 1/1/2025 (Insured; MBIA)....................................... 5,000,000 4,676,100
(Correctional Facilities) 5.50%, 1/1/2016............................... 7,900,000 7,108,025
(State Facilities) 5.70%, 4/1/2020...................................... 28,600,000 26,544,232
Onondaga County Industrial Development Agency, IDR (Weyerhaeuser Project)
9%, 10/1/2007........................................................... 1,000,000 1,248,050
Port Authority of New York and New Jersey:
(Consolidated Bond 93rd Series) 6.125%, 6/1/2094........................ 14,500,000 14,655,730
(Consolidated Bond 99th Series) 5.90%, 11/1/2012 (Insured; FGIC)........ 6,840,000 6,892,736
(Consolidated Bond 99th Series) 6%, 11/1/2013 (Insured; FGIC)........... 5,810,000 5,881,579
(Consolidated Bond 104th Series) 5.20%, 7/15/2017 (Insured; AMBAC)...... 8,025,000 7,373,771
(Consolidated Bond 105th Series) 5.50%, 9/1/2013 (Insured; MBIA)........ 7,500,000 7,204,725
Triborough Bridge and Tunnel Authority:
Capital Appreciation General Purpose 5%, 1/1/2015....................... 11,000,000 9,828,170
Revenues:
7.375%, 1/1/2016 (Prerefunded 1/1/2000)(b)............................ 8,280,000 9,130,439
General Purpose:
5%, 1/1/2014...................................................... 5,000,000 4,524,100
6.50%, 1/1/2015 (Prerefunded 1/1/1999)(b)......................... 8,525,000 9,055,426
Special Obligation Refunding 7.10%, 1/1/2010............................ 9,000,000 9,756,270
U.S. RELATED-6.0%
Commonwealth of Puerto Rico, Public Improvement:
5.85%, 7/1/2011......................................................... 5,480,000 5,417,583
7.75%, 7/1/2017 (Prerefunded 7/1/1999)(b)............................... 4,850,000 5,373,364
Puerto Rico Aqueduct and Sewer Authority, Revenue:
10.25%, 7/1/2009........................................................ 13,750,000 18,619,425
7.875%, 7/1/2017 (Prerefunded 7/1/1998)(b).............................. 4,340,000 4,742,578
5%, 7/1/2019............................................................ 4,000,000 3,460,880
Puerto Rico Electric Power Authority, Refunding:
6.10%, 7/1/2003......................................................... 5,000,000 5,275,650
8.375%, 7/1/2007 (Prerefunded 7/1/1997)(b).............................. 4,950,000 5,289,026
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1996
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
________ ________
U.S. RELATED (CONTINUED)
Puerto Rico Electric Power Authority, Refunding (continued):
Power Revenue:
6%, 7/1/2015.......................................................... $ 5,000,000 $ 4,929,900
5.50%, 7/1/2016....................................................... 8,250,000 7,712,513
Puerto Rico Highway and Transportation Authority, Highway Revenue
6.25%, 7/1/2004 (Insured; MBIA)......................................... 10,000,000 10,888,200
5.50%, 7/1/2013 (Insured; MBIA)......................................... 9,625,000 9,493,523
Refunding 5.50%, 7/1/2015 (Insured; MBIA)............................... 8,000,000 7,819,440
Puerto Rico Public Building Authority, Refunding:
Government Facilities Revenue
6.25%, 7/1/2009 (Guaranteed; Commonwealth of Puerto Rico) (Insured; AMBAC) 3,090,000 3,341,526
Public Education and Health Facilities
5.75%, 7/1/2015 (Guaranteed; Commonwealth of Puerto Rico)............. 7,520,000 7,188,443
_______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $1,642,985,228)................................................... $1,661,832,547
=======
SHORT-TERM MUNICIPAL INVESTMENTS-.5%
NEW YORK-.4%
New York City, VRDN:
3.70%, (LOC; State Street Bank and Trust)(a,c).......................... 300,000 $ 300,000
3.65%, 8/15/2022 (Insured; MBIA)(c)..................................... 6,600,000 6,600,000
U.S. RELATED-.1%
Commonwealth of Puerto Rico 3.28% (Insured; AMBAC)(d)....................... 1,500,000 1,500,000
_______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $8,400,000)....................................................... $ 8,400,000
=======
TOTAL INVESTMENTS-100.0%
(cost $1,651,385,228)................................................... $1,670,232,547
=======
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AGIC Asset Guaranty Insurance Company IDR Industrial Development Revenue
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FHA Federal Housing Administration SWDR Solid Waste Disposal Revenue
FSA Financial Security Assurance 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> <S> <C>
AAA Aaa AAA 31.1%
AA Aa AA 14.4
A A A 32.9
BBB Baa BBB 19.3
BB Ba BB 1.9
F1 MIG1 SP1 .4
-----
100.0%
====
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(c) Security payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(d) Inverse floater security - the interest rate is subject to change
periodically.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1996
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $1,651,385,228)-see statement................................... $1,670,232,547
Cash.................................................................... 1,540,027
Interest receivable..................................................... 31,618,334
Receivable for investment securities sold............................... 11,972,943
Receivable for subscriptions to Common Stock............................ 64,200
Prepaid expenses........................................................ 31,265
_______
1,715,459,316
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 922,841
Payable for investment securities purchased............................. 15,673,107
Payable for Common Stock redeemed....................................... 64,186
Accrued expenses........................................................ 120,794 16,780,928
_____ _______
NET ASSETS.................................................................. $1,698,678,388
=======
REPRESENTED BY:
Paid-in capital......................................................... $1,670,878,382
Accumulated undistributed net realized gain on investments.............. 8,952,687
Accumulated net unrealized appreciation on investments-Note 3........... 18,847,319
_______
NET ASSETS at value applicable to 116,035,307 shares outstanding
(300 million shares of $.01 par value Common Stock authorized).......... $1,698,678,388
=======
NET ASSET VALUE, offering and redemption price per share
($1,698,678,388 / 116,035,307 shares)................................... $14.64
=======
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1996
INVESTMENT INCOME:
INTEREST INCOME......................................................... $107,496,409
EXPENSES:
Management fee-Note 2(a).............................................. $ 10,848,601
Shareholder servicing costs-Note 2(b)................................. 1,673,191
Custodian fees........................................................ 117,975
Directors' fees and expenses-Note 2(c)................................ 58,989
Professional fees..................................................... 46,878
Prospectus and shareholders' reports.................................. 45,277
Registration fees..................................................... 17,423
______
TOTAL EXPENSES.................................................. 12,808,334
______
INVESTMENT INCOME-NET........................................... 94,688,075
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3.............................. $ 18,576,683
Net unrealized (depreciation) on investments............................ (72,041,092)
______
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (53,464,409)
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 41,223,666
=======
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MAY 31,
---------------------------------------
1995 1996
----------- ---------
OPERATIONS:
Investment income-net................................................... $ 103,879,086 $ 94,688,075
Net realized gain (loss) on investments................................. (1,930,409) 18,576,683
Net unrealized appreciation (depreciation) on investments for the year.. 29,915,882 (72,041,092)
________ ________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.................. 131,864,559 41,223,666
________ ________
DIVIDENDS TO SHAREHOLDERS:
From investment income-net.............................................. (103,879,086) (94,688,075)
From net realized gain on investments................................... (10,590,662) (5,306,076)
In excess of net realized gain on investments........................... (1,996,709) __
________ ________
TOTAL DIVIDENDS....................................................... (116,466,457) (99,994,151)
________ ________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 1,842,837,132 2,435,800,035
Dividends reinvested.................................................... 84,285,040 70,937,968
Cost of shares redeemed................................................. (2,004,556,426) (2,628,486,012)
________ ________
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.............. (77,434,254) (121,748,009)
________ ________
TOTAL (DECREASE) IN NET ASSETS.................................... (62,036,152) (180,518,494)
NET ASSETS:
Beginning of year....................................................... 1,941,233,034 1,879,196,882
________ ________
End of year............................................................. $ 1,879,196,882 $ 1,698,678,388
========= =========
SHARES SHARES
________ _______
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 126,069,512 161,812,682
Shares issued for dividends reinvested.................................. 5,780,551 4,695,987
Share redeemed.......................................................... (137,056,900) (174,178,872)
________ ________
NET (DECREASE) IN SHARES OUTSTANDING.................................. (5,206,837) (7,670,203)
========= =========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT 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.
YEAR ENDED MAY 31,
____________________________________________________________
PER SHARE DATA: 1992 1993 1994 1995 1996
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $14.89 $15.36 $16.06 $15.06 $15.19
---- ---- ---- ---- ----
INVESTMENT OPERATIONS:
Investment income-net........................ 1.01 .95 .88 .84 .79
Net realized and unrealized gain (loss)
on investments............................. .47 .92 (.62) .23 (.51)
---- ---- ---- ---- ----
TOTAL FROM INVESTMENT OPERATIONS........... 1.48 1.87 .26 1.07 .28
---- ---- ---- ---- ----
DISTRIBUTIONS:
Dividends from investment income-net......... (1.01) (.95) (.89) (.84) (.79)
Dividends from net realized gain on investments -- (.22) (.37) (.08) (.04)
Dividends in excess of net realized gain
on investments............................. -- -- -- (.02) --
---- ---- ---- ---- ----
TOTAL DISTRIBUTIONS........................ (1.01) (1.17) (1.26) (.94) (.83)
---- ---- ---- ---- ----
Net asset value, end of year................. $15.36 $16.06 $15.06 $15.19 $14.64
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 10.23% 12.63% 1.42% 7.55% 1.84%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .69% .70% .71% .72% .71%
Ratio of net investment income to average net assets 6.69% 6.03% 5.49% 5.70% 5.24%
Portfolio Turnover Rate...................... 40.05% 51.20% 35.66% 49.03% 81.93%
Net Assets, end of year (000's Omitted)...... $1,897,988 $2,098,253 $1,941,233 $1,879,197 $1,698,678
</TABLE>
See notes to financial statements.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New York Tax Exempt Bond Fund, Inc. the ("Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified,
open-end management investment company. The Fund's investment objective is to
provide investors with as high a level of current income exempt from Federal,
New York State and New York City income taxes as is 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 charge.
(A) PORTFOLIO VALUATION: The Fund's investments 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.
(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.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(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.
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 .60 of 1% of the value
of the Fund's average daily net assets and is
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
payable monthly. The Agreement provides for an expense reimbursement from the
Manager should the Fund's aggregate expenses, exclusive of taxes, interest on
borrowings, brokerage commissions and extraordinary expenses, exceed 1 1/2% of
the value of the Fund's average net assets for any full fiscal year. There
was no expense reimbursement for the year ended May 31, 1996.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the year ended May 31, 1996, the Fund was charged an aggregate of
$841,756 pursuant to the Shareholder Services 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 $279,504 for the period from
December 1, 1995 through May 31, 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:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the year ended May 31, 1996 amounted
to $1,394,471,941 and $1,418,186,891, respectively.
At May 31, 1996, accumulated net unrealized appreciation on investments
was $18,847,319, consisting of $49,843,910 gross unrealized appreciation and
$30,996,591 gross unrealized depreciation.
At May 31, 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).
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus New York Tax Exempt Bond Fund, Inc., including the statement of
investments, as of May 31, 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 May 31, 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 Dreyfus New York Tax Exempt Bond Fund, Inc. at May 31, 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
July 3, 1996
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended May 31, 1996:
- all the dividends paid from investment income-net are "exempt-interest
dividends" (not subject to regular Federal and, for individuals who are New
York residents, New York State and New York City personal income taxes), and
- the Fund hereby designates $.0427 per share as a long-term capital gain
distribution of the $.0435 per share paid on December 7, 1995.
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]
DREYFUS NEW YORK
TAX EXEMPT 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. 980AR965
[Dreyfus logo]
New York
Tax Exempt
Bond Fund, Inc.
Annual Report
May 31, 1996
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC. AND
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
_________________________________________________________
| | | DREYFUS |
| | LEHMAN BROTHERS | NEW YORK |
| PERIOD | MUNICIPAL | TAX EXEMPT |
| | BOND INDEX * | BOND FUND |
|--------------- | ----------------- | ----------------|
| 5/31/86 | 10,000 | 10,000 |
| 5/31/87 | 10,653 | 10,499 |
| 5/31/88 | 11,610 | 11,070 |
| 5/31/89 | 12,946 | 12,331 |
| 5/31/90 | 13,893 | 13,001 |
| 5/31/91 | 15,293 | 14,179 |
| 5/31/92 | 16,795 | 15,629 |
| 5/31/93 | 18,805 | 17,603 |
| 5/31/94 | 19,269 | 17,853 |
| 5/31/95 | 21,024 | 19,200 |
| 5/31/96 | 21,985 | 19,552 |
|--------------------------------------------------------|
*Source: Lehman Brothers
