DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus New York
Tax Exempt Bond Fund, Inc. for its fiscal year ended May 31, 1997. Your Fund
produced a total return, including bond price changes and interest income, of
8.14%.* The Fund's tax-free annualized distribution rate per share was
5.04%.** (Some income may be subject to the Federal Alternative Minimum Tax
for certain shareholders.)
Economic Review
Plentiful jobs and low inflation spurred consumer confidence to its
highest level in 27 years by the end of the reporting period, May 30, 1997.
Economic growth surged 5.6% in the first quarter of this year, sharply higher
than the 3.8% rate in the last quarter of 1996. With unemployment at its
lowest level in 23 years, there was fear that without some preemptive
tightening in monetary policy, inflationary pressures would resume. As a
precaution, in March 1997, the Federal Open Market Committee (the "FOMC"),
the policy-making arm of the Federal Reserve Board (the "Fed"), raised the
Federal Funds rate one quarter of a percentage point to 5.50%. It was the
first hike in short-term rates in over two years. (The Federal Funds rate is
the rate of interest banks charge each other for overnight loans.) Fed
Chairman Greenspan likened the increase to "the small immediate discomfort of
a vaccination against the possibility of getting a serious disease."
Subsequent to the March rate increase, signs of inventory accumulation and
some moderation in retail sales may have helped stay the Fed from
implementing additional increases in short-term interest rates.
The great difference between the present economic recovery and previous
ones is the absence of inflation. The economy is now in its seventh year of
expansion, an expansion devoid of any appreciable resurgence in inflation.
The Producer Price Index, a measure of prices paid by manufacturers and an
indicator of so-called pipeline inflation, declined over the first four
months of this year and has risen less than 1% over the previous twelve
months. The rise in inflation on the consumer level has been similarly
subdued. The Consumer Price Index increased a modest 2.5% over the
twelve-month period ending in April.
On another front, the tight labor market has spawned fears that rising
wages would provide an inflationary stimulus to the economy. So far this has
not occurred. The Employment Cost Index, a gauge of wage and benefit
increases, has remained below 3%. The bipartisan budget agreement recently
reached between the Clinton Administration and the Republican Congressional
leadership has also eased inflationary fears.
The economic confidence of consumers is readily understandable. The
exceptionally low unemployment rate has combined with a strong economy that
has expanded with unusual vigor. But, despite huge business investment in
technology to improve productivity, it would be folly to assume that the
economy's capacity for noninflationary growth is unlimited. Consumers
enjoying both job stability and rising personal incomes could increase their
spending to levels that would strain production and bring on inflation or the
Fed could again tighten credit, perhaps in another precautionary move.
Market Environment
The changing outlook for the economy has been vividly reflected in the
volatility that the fixed income markets have experienced over the past year.
After a strong close to 1996, which confirmed the opinion that inflation was
contained, early 1997 refocused on a strong labor market and the effect of
wage pressure on the economy . As the economy began to expand, investors
became convinced of an imminent tightening of monetary policy by the FOMC.
During this time interest rates moved up to levels that were last seen during
July 1996, passing the 7% level in long Treasuries. Although it was assumed
that most of the tightening had been reflected in the market, prices
continued to erode during this time period. The sentiment reversed once again
as second quarter numbers indicated a slowing economy.
The supply of New York paper has been moderate and most deals that have
come to market have been very well received, as retail demand has remained
strong. The combined technicals of high demand and limited supply enabled the
municipal market to turn in a strong performance compared to the taxable
fixed-income markets. This is illustrated by a comparison of the movement of
30-year U.S. Treasury yields and Municipal yields as represented by the Bond
Buyer's 25 Bond Revenue Index. While interest rates fluctuated significantly
over the course of the year ended May 31, 1997, 30-year Treasury yields
closed the period 10 basis points lower (.10%) at 6.90%. Over the same time,
the Revenue Index declined by 30 basis points (.30%) to close the period at
5.91%, which represents a taxable equivalent yield of 8.20%, assuming a 28%
Federal income tax bracket. (Remember, fund yields and net asset values do
fluctuate, past performance is no guarantee of future results, and actual
results for a fund will vary from an index.)
Portfolio Overview
Given the flattening of the yield curve and the narrowing of spreads
between the 20-30 year range, we have focused most of our current investments
in the 20-year and shorter maturity range. This has enabled your Fund to
achieve a competitive return for its fiscal year while reducing volatility.
We will continue this strategy until it becomes apparent that further Federal
Reserve action is no longer warranted. The Fund holds a large percentage of
paper with coupons that are 6% and higher, . This coupon has been in constant
demand from the retail sector and continued to perform well over the period.
These two factors significantly contributed to the Fund's solid relative
performance over the fiscal period. The availability of high yield paper in
the New York market has been very limited and therefore expensive. We have
felt that the spread relationship for lower rated paper was not enough to
warrant an extension into the longer end of the market.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 17, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
** Distribution rate per share is based upon dividends per share paid
from net investment income during the period (annualized), divided by the net
asset value per share at the end of the period, adjusted for any capital gain
distributions.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC. MAY 31, 1997
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
$22,345
Lehman Brothers
Municipal Bond Index*
$20,137
Dreyfus New York
Tax Exempt Bond Fund
*Source: Lehman Brothers]
Average Annual Total Returns
One Year Ended Five Years Ended Ten Years Ended
May 31, 1997 May 31, 1997 May 31, 1997
---------------- ---------------- ----------------
8.14% 6.23% 7.25%
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 5/31/87 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 and is not limited to investments principally in New York municipal
obligations. 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, 1997
Principal
Long-Term Municipal Investments-97.3% Amount Value
-------- --------
<S> <C> <C>
New York-94.3%
Cohoes Industrial Development Agency, IDR (Norlite Corp. Project)
6.75%, 5/1/2009 (LOC; Dresdner Bank) (Prerefunded 5/1/2002) (a,b)......... $ 5,000,000 $ 5,533,000
Metropolitan Transportation Authority, Revenue:
Commuter Facilities, Service Contract 6%, 7/1/2016 (Insured; FGIC) (c).... 9,000,000 9,357,930
Transit Facilities, Service Contract:
5.625%, 7/1/2016........................................................ 19,000,000 18,352,480
7.50%, 7/1/2019 (Prerefunded 7/1/2000) (b).............................. 7,700,000 8,483,552
Refunding:
6.625 %, 7/1/2014 (Prerefunded 7/1/2002) (b).......................... 5,950,000 6,571,358
7.125%, 7/1/2009...................................................... 5,000,000 5,470,300
Municipal Assistance Corporation for City of New York, Revenue, Refunding:
5.50%, 7/1/2001........................................................... 19,765,000 20,438,591
6%, 7/1/2005.............................................................. 13,000,000 13,949,130
6%, 7/1/2006.............................................................. 7,770,000 8,369,689
Nassau County, 5.20%, 9/1/2014 (Insured; FGIC).............................. 5,450,000 5,277,671
Nassau County Industrial Development Agency, IDR
(Hofstra University Project) 8.25%, 7/1/2003 (Prerefunded 7/1/1998) (b)... 3,000,000 3,138,720
New York City:
7.50%, 2/1/2003........................................................... 3,500,000 3,864,770
6.375%, 8/1/2004.......................................................... 16,000,000 16,928,160
7.50%, 2/1/2006........................................................... 4,000,000 4,454,680
7.75%, 8/15/2006 (Prerefunded 8/15/2001) (b).............................. 5,780,000 6,567,814
5.75%, 2/1/2007 (Insured; AMBAC) (c)...................................... 12,305,000 12,956,550
5.75%, 8/15/2008.......................................................... 5,000,000 5,068,050
6.50%, 8/15/2009.......................................................... 10,125,000 10,968,716
7.50%, 3/15/2010.......................................................... 585,000 628,740
7%, 10/1/2010............................................................. 3,955,000 4,233,195
3.65%, 8/1/2011........................................................... 18,775,000 17,856,151
6%, 8/1/2011.............................................................. 7,000,000 7,147,909
6.25%, 8/1/2011 (Insured; FSA) (Prerefunded 8/1/2002) (b)................. 3,950,000 4,301,945
5.75%, 8/15/2011.......................................................... 8,870,000 8,874,878
5.75%, 2/1/2012........................................................... 3,000,000 2,987,970
5.875%, 8/15/2013......................................................... 4,550,000 4,569,929
6.85%, 10/1/2013.......................................................... 5,000,000 5,218,950
7.50%, 8/1/2021 (Prerefunded 8/1/2002) (b)................................ 565,000 623,602
7.50%, 8/1/2021........................................................... 4,435,000 5,082,865
Refunding:
5.20%, 8/1/2003 (d)..................................................... 15,000,000 14,975,400
5.30%, 8/1/2004 (d)..................................................... 15,220,000 15,191,843
6.50%, 3/15/2005........................................................ 13,770,000 14,739,683
5.45%, 8/1/2005 (d)..................................................... 10,000,000 10,045,000
6.25%, 2/15/2007........................................................ 5,375,000 5,667,292
6.25%, 8/1/2009......................................................... 10,500,000 10,975,650
7.50%, 3/15/2010 (Prerefunded 3/15/2000) (b)............................ 9,415,000 10,307,165
6.25%, 8/1/2010......................................................... 10,000,000 10,387,600
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
-------- --------
New York (continued)
New York City (continued):
Refunding (continued):
6.375%, 8/15/2012....................................................... $ 13,000,000 $ 13,571,220
5.875%, 8/1/2024........................................................ 16,000,000 15,742,560
6.125%, 8/1/2025........................................................ 12,250,000 12,332,320
New York City Housing Development Corp., MFHR Refunding 5.625%, 5/1/2012.... 14,460,000 14,351,261
New York City Municipal Water Finance Authority, Water and Sewer Systems
Revenue:
5.625%, 6/15/2011......................................................... 16,000,000 16,040,480
7%, 6/15/2015 (Prerefunded 6/15/2001) (b)................................. 5,655,000 6,209,360
6.20%, 6/15/2021 (Insured; AMBAC)......................................... 9,700,000 10,160,362
5.50%, 6/15/2023.......................................................... 11,000,000 10,537,670
5.75%, 6/15/2029.......................................................... 41,000,000 40,554,740
Refunding:
5.625%, 6/15/2019....................................................... 17,335,000 17,097,511
5.375%, 6/15/2026 (Insured; FSA)........................................ 16,200,000 15,713,352
State of New York:
5.875%, 3/15/2014......................................................... 3,000,000 3,073,740
5.50%, 7/15/2016.......................................................... 11,165,000 11,079,476
Environmental Quality:
5%, 1/15/2014........................................................... 7,170,000 6,752,419
5.125%, 1/15/2016....................................................... 7,785,000 7,390,378
Refunding:
5.625%, 8/15/2009....................................................... 15,000,000 15,426,900
5.70%, 8/15/2011........................................................ 4,500,000 4,593,825
6.125%, 11/15/2011...................................................... 3,130,000 3,261,617
5.80%, 10/1/2013........................................................ 4,715,000 4,819,767
5.625%, 10/1/2020....................................................... 5,175,000 5,101,826
New York State Dormitory Authority, Revenues:
(City University Systems):
7%, 7/1/2009............................................................ 8,500,000 9,482,770
7.50%, 7/1/2010 (Insured; FGIC)......................................... 5,000,000 6,036,350
5.625%, 7/1/2016........................................................ 9,120,000 9,045,763
5%, 7/1/2020............................................................ 10,000,000 8,741,600
Refunding:
5.60%, 7/1/2010....................................................... 12,000,000 11,944,320
5.375%, 7/1/2014 (Insured; FGIC)...................................... 6,500,000 6,421,025
5.50%, 7/1/2016 (Insured; AMBAC)...................................... 19,000,000 18,788,910
5%, 7/1/2020 (Insured; FGIC).......................................... 21,000,000 19,037,130
5.50%, 7/1/2024 (Insured; MBIA)....................................... 10,300,000 10,065,469
(Cornell University) 7.375%, 7/1/2030..................................... 11,785,000 12,929,088
Department of Health 5.50%, 7/1/2025...................................... 24,475,000 23,250,760
Mental Health Services Facilities Improvement:
5.375%, 2/15/2026....................................................... 22,550,000 21,022,237
Refunding 5.25%, 2/15/2018 (Insured; AMBAC)............................. 8,000,000 7,672,800
(New York Medical College) 6.875%, 7/1/2021 (Insured; FGIC)............... 19,310,000 20,913,696
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
-------- --------
New York (continued)
New York State Dormitory Authority, Revenues (continued):
Nursing Home:
(Bishop Henry B. Hucles) 5.625% 7/1/2018 (Insured; SONYMA).............. $ 5,890,000 $ 5,832,278
(Lakeside) 6%, 2/1/2037 (Insured; FHA) (d).............................. 5,000,000 5,022,400
(Menorah Campus) Refunding:
5.95%, 2/1/2017 (Insured; FHA)........................................ 3,000,000 3,038,760
6.10%, 2/1/2037 (Insured; FHA)........................................ 8,500,000 8,630,390
(Saint Vincent's Hospital and Medical Center) 5.80%, 8/1/2025............. 4,750,000 4,758,597
(State University) 7.60%, 7/1/2018 (Prerefunded 7/1/1998) (b)............. 3,000,000 3,177,990
Educational Facilities:
7.25%, 5/15/2008 (Prerefunded 5/15/2000) (b).......................... 11,590,000 12,702,061
7.50%, 5/15/2011...................................................... 3,750,000 4,379,775
7.375%, 5/15/2014 (Prerefunded 5/15/2000) (b)......................... 10,155,000 11,164,204
7%, 5/15/2018 (Prerefunded 5/15/2000) (b)............................. 16,060,000 17,490,786
5.50%, 5/15/2026...................................................... 8,990,000 8,559,109
Refunding:
5.875%, 5/15/2011................................................... 20,000,000 20,478,400
5.50%, 5/15/2013.................................................... 10,000,000 9,776,600
5.50%, 5/15/2013 (Insured; FGIC).................................... 6,035,000 6,108,506
7.375%, 5/15/2014................................................... 12,945,000 14,073,157
5.25%, 5/15/2015.................................................... 12,500,000 11,812,125
New York State Energy Research and Development Authority, Revenue:
Electric Facilities:
(Consolidated Edison Co. Project) 7.125%, 12/1/2029..................... 13,000,000 14,466,010
(Long Island Lighting Company Project):
7.15%, 9/1/2019....................................................... 8,930,000 9,482,053
6.90%, 8/1/2022....................................................... 3,010,000 3,168,145
New York State Environmental Facilities Corp.
State Water Pollution Control Revolving Fund Revenue
(New York City Municipal Water Finance Authority Project):
6.875%, 6/15/2010..................................................... 21,340,000 23,309,255
7.25%, 6/15/2010...................................................... 16,065,000 17,682,264
7%, 6/15/2012......................................................... 21,660,000 23,644,273
New York State Housing Finance Agency, Revenue:
Health Facilities Refunding:
5.875%, 5/1/2004........................................................ 6,500,000 6,702,410
6%, 5/1/2008............................................................ 10,000,000 10,314,700
Housing Projects Refunding 6.10%, 11/1/2015 (Insured; FSA)................ 13,300,000 13,618,668
Insured Multi-Family Mortgage 7%, 8/15/2022............................... 4,495,000 4,749,012
Multi-Family Housing Second Mortgage 6.95%, 8/15/2024 (Insured; FHA)...... 2,905,000 3,048,652
Service Contract Obligation:
5.50%, 9/15/2022........................................................ 4,000,000 3,733,640
Refunding 5.375%, 9/15/2011............................................. 13,520,000 12,808,442
New York State Local Government Assistance Corp.:
7%, 4/1/2005.............................................................. 4,300,000 4,735,031
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
-------- --------
New York (continued)
New York State Local Government Assistance Corp. (continued):
6%, 4/1/2024.............................................................. $ 17,005,000 $ 17,300,207
Refunding:
5.40%, 4/1/2015......................................................... 11,515,000 11,322,584
5.25%, 4/1/2016 (Insured; AMBAC)........................................ 15,060,000 14,698,259
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 8,859,462
(New York Hospital) 6.50%, 8/15/2029 (Insured; AMBAC)................... 12,000,000 12,878,160
(Saint Lukes Hospital) 7.45%, 2/15/2029 (Prerefunded 2/15/2000) (b)..... 10,000,000 10,948,900
Hospital and Nursing Home FHA Insured Mortgage:
6.125%, 2/15/2015....................................................... 13,270,000 13,729,673
(Saint Joseph's and Bayley Seton Hospital) Refunding 6.45%, 2/15/2009... 6,140,000 6,635,989
(Saint Lukes and Waterfront Nursing Homes) 6.85%, 2/15/2012............. 6,000,000 6,417,840
Insured Long Term Health Care 6.45%, 11/1/2010 (Insured; FSA)............. 10,875,000 11,671,268
Mental Health Services:
5.375%, 8/15/2013 (Insured; FGIC)....................................... 7,900,000 7,785,924
Refunding, Custodial Receipts:
5.375%, 2/15/2014 (Insured; FSA)...................................... 15,000,000 14,619,600
Mental Health Services Facilities Improvement
6%, 2/15/2025 (Insured; MBIA)........................................... 8,710,000 8,885,594
New York State Mortgage Agency, Revenue Mortgage
Homeowner:
6.60%, 10/1/2019........................................................ 10,685,000 11,130,458
Refunding:
6%, 4/1/2017.......................................................... 6,000,000 6,039,840
6%, 10/1/2022......................................................... 5,000,000 5,012,100
6.20%, 10/1/2026...................................................... 28,100,000 28,495,648
New York State Power Authority, Revenue and General Purpose Refunding
6.625%, 1/1/2012.......................................................... 6,490,000 6,999,790
New York State Thruway Authority:
Highway and Bridge Trust Fund:
5.25%, 4/1/2015 (Insured; AMBAC)........................................ 5,000,000 4,867,000
5.50%, 4/1/2015 (Insured; MBIA) (c)..................................... 15,800,000 15,828,440
5.25%, 4/1/2016 (Insured; AMBAC)........................................ 5,175,000 5,003,397
Service Contract Revenue (Local Highway and Bridge):
7.25%, 1/1/2010 (Prerefunded 1/1/2001) (b).............................. 13,000,000 14,363,050
5.75%, 4/1/2013 (Insured; MBIA) (c)..................................... 7,185,000 7,306,283
5.75%, 4/1/2016......................................................... 35,950,000 35,438,791
New York State Urban Development Corp., Revenue:
(Correctional Capital Facilities):
5.25%, 1/1/2013......................................................... 8,935,000 8,478,690
5.625%, 1/1/2017........................................................ 10,240,000 9,943,859
5.375%, 1/1/2025 (Insured; AMBAC)....................................... 5,020,000 4,824,571
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Long-Term Municipal Investments (continued) Amount Value
-------- --------
New York (continued)
New York State Urban Development Corp., Revenue (continued):
(Correctional Capital Facilities) (continued):
5.70%, 1/1/2027......................................................... $ 19,350,000 $ 18,823,487
Refunding:
5.50%, 1/1/2016....................................................... 33,885,000 32,200,577
5.50%, 4/1/2016 (Insured; MBIA)....................................... 5,000,000 4,944,700
(Correctional Facilities) 5.50%, 1/1/2016................................. 7,650,000 7,302,767
Refunding:
5.50%, 7/1/2016 (Insured; FHA).......................................... 23,250,000 22,991,693
5.50%, 7/1/2026 (Insured; FHA).......................................... 12,000,000 11,668,680
5.60%, 7/1/2026 (Insured; FHA).......................................... 9,750,000 9,470,273
(State Facilities) Refunding 5.70%, 4/1/2020.............................. 28,600,000 28,398,942
Port Authority of New York and New Jersey:
(Consolidated Bond 93rd Series) 6.125%, 6/1/2094.......................... 15,000,000 15,991,800
(Consolidated Bond 99th Series) 5.90%, 11/1/2012 (Insured; FGIC).......... 6,840,000 7,054,092
(Consolidated Bond 99th Series) 6%, 11/1/2013 (Insured; FGIC)............. 5,810,000 6,016,081
(Consolidated Bond 104th Series) 5.20%, 7/15/2017 (Insured; AMBAC)........ 8,025,000 7,747,816
Special Obligation Revenue (JFK International Air Terminal-6):
6.25%, 12/1/2014 (Insured; MBIA)........................................ 10,000,000 10,865,500
5.75%, 12/1/2022 (Insured; MBIA)........................................ 24,000,000 23,888,640
Tompkins County Industrial Development Agency, Civic Facility Revenue
(Ithacare Center Project) 6.20%, 2/1/2037 (Insured; FHA).................. 6,000,000 6,059,400
Triborough Bridge and Tunnel Authority:
Revenues:
7.375%, 1/1/2016 (Prerefunded 1/1/2000) (b)............................. 8,280,000 8,993,902
General Purpose:
6.50%, 1/1/2015 (Prerefunded 1/1/1999) (b).............................. 8,525,000 8,946,902
5.20%, 1/1/2022......................................................... 10,500,000 9,975,945
5.20%, 1/1/2027......................................................... 6,500,000 6,121,505
Refunding 5%, 1/1/2014.................................................. 5,000,000 4,769,250
Special Obligation Refunding 7.10%, 1/1/2010............................ 9,000,000 9,886,860
U.S. Related-3.0%
Commonwealth of Puerto Rico, Public Improvement 6%, 7/1/2026................ 5,000,000 5,122,850
Puerto Rico Aqueduct and Sewer Authority, Revenue:
10.25%, 7/1/2009.......................................................... 13,750,000 18,966,612
7.875%, 7/1/2017 (Prerefunded 7/1/1998) (b)............................... 4,340,000 4,611,944
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6%, 7/1/2022.............................................................. 9,500,000 9,711,660
5%, 7/1/2036.............................................................. 6,000,000 5,383,320
Refunding 5.50%, 7/1/2015 (Insured; MBIA)................................. 8,000,000 8,095,840
--------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $1,596,562,747)..................................................... $1,660,693,738
========
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1997
Principal
Short-Term Municipal Investments-2.7% Amount Value
-------- --------
New York-2.6%
New York City, VRDN 4.05% (Insured; MBIA, SBPA; Bank of Nova Scotia) (e).... $ 3,700,000 $ 3,700,000
New York City Housing Development Corp., Special Obligation Revenue,
Refunding VRDN
(East 96th Street Project) 3.80% (LOC; Bank of Tokyo Mitsubishi) (a,e).... 12,600,000 12,600,000
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue, VRDN 4.05% (Insured; FGIC, SBPA; FGIC) (e) 15,150,000 15,150,000
New York State Energy Research and Development Authority, PCR, Refunding
VRDN (New York Electric and Gas Co.) 3.90% (LOC; Union Bank of Switzerland) (a,e) 6,800,000 6,800,000
Port Authority of New York and New Jersey, Special Obligation Revenue,
Refunding, VRDN:
4.05% (SBPA; Landesbank Hessen) (e)....................................... 3,100,000 3,100,000
4.15% (SBPA; Sumitomo Bank, Ltd.) (e)..................................... 2,300,000 2,300,000
U.S. Related-.1%
Commonwealth of Puerto Rico 3.20% (Insured; AMBAC) (f)...................... 1,500,000 1,500,000
--------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $45,150,000)........................................................ $ 45,150,000
========
TOTAL INVESTMENTS-100.0%
(cost $1,641,712,747)..................................................... $1,705,843,738
========
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
Summary of Abbreviations
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FHA Federal Housing Administration SBPA Standby Bond Purchase Agreement
FSA Financial Security Assurance SONYMA State of New York Mortgage Agency
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
Insurance Corporation
Summary of Combined Ratings (Unaudited)
Fitch (g) or Moody's or Standard & Poor's Percentage of Value
- -------- -------- ------------------ -------------------
AAA Aaa AAA 32.5%
AA Aa AA 18.6
A A A 33.9
BBB Baa BBB 11.9
BB Ba BB .6
F1 MIG1 SP1 2.5
----
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) Held in a segregated account as collateral for delayed-delivery
securities.
(d) Purchased on a delayed-delivery basis.
(e) Security payable upon demand. The interest rate, which is subject to
change, is based upon bank prime rate or an index of market interest
rates.
(f) Inverse floater security-interest rate is subject to change
periodically.
(g) 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, 1997
Cost Value
--------- ---------
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $1,641,712,747 $1,705,843,738
Cash....................................... 4,908,579
Interest receivable........................ 29,046,862
Receivable for investment securities sold.. 9,166,269
Prepaid expenses........................... 27,427
---------
1,748,992,875
---------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 1,052,070
Payable for investment securities purchased 45,090,693
Payable for shares of Common Stock redeemed 28,370
Accrued expenses........................... 135,307
---------
46,306,440
---------
NET ASSETS.................................................................. $1,702,686,435
=========
REPRESENTED BY: Paid-in capital............................ $1,633,046,343
Accumulated undistributed investment income-net234,369
Accumulated net realized gain (loss) on investments 5,274,732
Accumulated net unrealized appreciation (depreciation)
....................... on investments-Note 4 64,130,991
---------
NET ASSETS.................................................................. $1,702,686,435
=========
SHARES OUTSTANDING
(300 MILLION SHARES OF $.01 PAR VALUE COMMON STOCK AUTHORIZED).............. 113,705,275
NET ASSET VALUE, offering and redemption price per share-Note 3(d).......... $14.97
=========
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1997
INVESTMENT INCOME
INCOME Interest Income............................ $100,574,929
EXPENSES: Management fee-Note 3(a)................... $10,336,018
Shareholder servicing costs-Note 3(b)...... 1,985,414
Custodian fees............................. 117,311
Professional fees.......................... 76,986
Directors' fees and expenses-Note 3(c)..... 73,009
Prospectus and shareholders' reports....... 45,596
Registration fees.......................... 34,205
Loan commitment fees-Note 2................ 10,958
Miscellaneous.............................. 59,887
-------
Total Expenses......................... 12,739,384
-------
INVESTMENT INCOME-NET....................................................... 87,835,545
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 5,326,888
Net unrealized appreciation (depreciation) on investments 45,283,672
-------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 50,610,560
-------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $138,446,105
=======
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
May 31, 1997 May 31, 1996
------------- --------------
OPERATIONS:
Investment income-net.................................................. $ 87,835,545 $ 94,688,075
Net realized gain (loss) on investments................................ 5,326,888 18,576,683
Net unrealized appreciation (depreciation) on investments.............. 45,283,672 (72,041,092)
--------- ---------
Net Increase (Decrease) in Net Assets Resulting from Operations...... 138,446,105 41,223,666
--------- ---------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................. (87,601,176) (94,688,075)
Net realized gain on investments....................................... (9,004,843) (5,306,076)
--------- ---------
Total Dividends...................................................... (96,606,019) (99,994,151)
--------- ---------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 2,685,271,128 2,435,800,035
Dividends reinvested................................................... 68,017,640 70,937,968
Cost of shares redeemed................................................ (2,791,120,807) (2,628,486,012)
--------- ---------
Increase (Decrease) in Net Assets from Capital Stock Transactions.... (37,832,039) (121,748,009)
--------- ---------
Total Increase (Decrease) in Net Assets............................ 4,008,047 (180,518,494)
NET ASSETS:
Beginning of Period.................................................... 1,698,678,388 1,879,196,882
--------- ---------
End of Period.......................................................... $ 1,702,686,435 $1,698,678,388
========= =========
UNDISTRIBUTED INVESTMENT INCOME-NET...................................... $ 234,369 ---
--------- ---------
Shares Shares
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 180,835,120 161,812,682
Shares issued for dividends reinvested................................. 4,558,729 4,695,987
Shares redeemed........................................................ (187,723,881) (174,178,872)
--------- ---------
Net Increase (Decrease) in Shares Outstanding........................ (2,330,032) (7,670,203)
========= =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
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 period indicated. This
information has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Year Ended May 31,
-------------------------------------------------------
PER SHARE DATA: 1997 1996 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $14.64 $ 15.19 $15.06 $16.06 $15.36
---- ---- ---- ---- ----
Investment Operations:
Investment income-net........................ .76 .79 .84 .88 .95
Net realized and unrealized gain (loss)
on investments............................. .41 (.51) .23 (.62) .92
---- ---- ---- ---- ----
Total from Investment Operations............. 1.17 .28 1.07 .26 1.87
---- ---- ---- ---- ----
Distributions:
Dividends from investment income-net......... (.76) (.79) (.84) (.89) (.95)
Dividends from net realized gain
on investments............................. (.08) (.04) (.08) (.37) (.22)
Dividends in excess of net realized
gain on investments........................ - - (.02) - -
---- ---- ---- ---- ----
Total Distributions.......................... (.84) (.83) (.94) (1.26) (1.17)
---- ---- ---- ---- ----
Net asset value, end of period............... $14.97 $14.64 $15.19 $15.06 $16.06
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 8.14% 1.84% 7.55% 1.42% 12.63%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .74% .71% .72% .71% .70%
Ratio of net investment income
to average net assets...................... 5.10% 5.24% 5.70% 5.49% 6.03%
Portfolio Turnover Rate...................... 74.46% 81.93% 49.03% 35.66% 51.20%
Net Assets, end of period (000's Omitted).... $1,702,686 $1,698,678 $1,879,197 $1,941,233 $2,098,253
</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. is the distributor of the Fund's
shares, which are sold to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in 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.
(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-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended May
31, 1997, the Fund did not borrow under the Facility.
DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 3-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 payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, interest on borrowings, brokerage commissions, commitment
fees and extraordinary expenses, exceed 11\2% of the value of the Fund's
average net assets, the Fund may deduct from payments to be made to the
Manager, or the Manager will bear such excess expense. There was no expense
reimbursement for the period ended May 31, 1997.
(B) Under the 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 period ended May 31, 1997, the Fund was charged an aggregate of
$1,165,852 pursuant to the Shareholder Services Plan.
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 $541,230 during the period ended May 31, 1997.
(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.
(D) Effective May 12, 1997, a .10% redemption fee is charged on certain
redemptions of Fund shares (including redemptions through use of the Fund
Exchanges service) where the shares being redeemed were issued subsequent to
a specified effective date and the redemption or exchange occurs less than
fifteen days following the date of issuance. During the period ended May 31,
1997, redemption fees amounted to $50,419.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended May 31, 1997
amounted to $1,235,421,255 and $1,287,212,086, respectively.
At May 31, 1997, accumulated net unrealized appreciation on investments
was $64,130,991, consisting of $65,746,939 gross unrealized appreciation and
$1,615,948 gross unrealized depreciation.
At May 31, 1997, 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, 1997, 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 and financial highlights. Our procedures included
confirmation of securities owned as of May 31, 1997 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, 1997, and
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 & YOUNG LLP signature logo]
New York, New York
July 1, 1997
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, 1997:
- all dividends paid from investment income-net are "exempt-interest
dividends" (not generally 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 $.0790 per share as a long-term capital gain
distribution of the $.0791 per share paid on December 5, 1996.
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 gains distributions (if any) paid for the 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
Registration Mark
[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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 980AR975
Registration Mark
[Dreyfus logo]
New York
Tax Exempt
Bond Fund, Inc.
Annual Report
May 31, 1997
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
5/31/87 10,000 10,000
5/31/88 10,898 10,544
5/31/89 12,152 11,745
5/31/90 13,041 12,382
5/31/91 14,355 13,505
5/31/92 15,765 14,886
5/31/93 17,651 16,766
5/31/94 18,087 17,004
5/31/95 19,735 18,286
5/31/96 20,636 18,623
5/31/97 22,345 20,137
*Source: Lehman Brothers
