<PAGE>
Dreyfus
New York
Tax Exempt
Bond Fund, Inc.
Annual Report
May 31, 1998
<PAGE>
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 the 12-month period ended May 31, 1998. Your Fund
produced a total return, including share price changes and dividend income
generated, of 9.36%,* and an annualized tax-free distribution rate per share of
4.78%.**
Economic Review
In recent months, economic developments overseas began to assert a more
vigorous influence on the U.S. economy. The first quarter of the 1998 calendar
year saw the U.S. trade deficit rising to a new high. Exports contracted due to
reduced foreign demand for U.S. products, which resulted in a marked rise in
business inventories; that could create a drag on future production as
stockpiles are depleted. At the same time, imports surged. Spurred by a strong
U.S. dollar and robust consumer spending, the increase in cheaper imports helped
dampen domestic inflation since American producers had to restrain their prices
in order to remain competitive. The suppressive effect of the trade deficit on
both domestic production and prices has been fortuitously in concert with the
direction of Federal Reserve Board monetary policy.
The financial difficulties that began in Asia last year have now spread to
Latin America and beyond. That tenuous situation and the continued economic
instability in Russia have contributed to the Fed's status quo policy in
monetary matters since the Fed is concerned that any increase in short-term
interest rates would further unsettle world markets. The last increase in
short-term rates came in March 1997 when the Federal Open Market Committee (the
policy-making arm of the Fed) raised the target rate for Federal Funds by one
quarter of a percent to 5.5%. (The Federal Funds rate is the rate of interest
that banks charge each other for the use of Federal Funds.)
Consumers, spurred by real wage gains and a healthy job market, continued to
spend freely in the retail sector during the reporting period, giving retailers
some of their best months in a decade. The buoyant stock market, low
unemployment rate and absence of inflation encouraged consumers to spend. The
market for so-called "big ticket" items has been strong: the housing market was
solid throughout the reporting period and continues to be, while car and truck
sales are at ten-year highs.
Unemployment (4.3% at the end of the reporting period) is at a 28-year low.
Inflation, at both consumer and producer levels, has been dormant. Workers are
benefiting from having their wages rise faster than inflation. The most recently
reported statistics on hourly wages (through April) revealed that over the
previous 12 months wages rose 4.4% while the Consumer Price Index increased but
1.4%. The tight labor market and upward pressure on wages, because of their
potential for rekindling inflation, have been major concerns of the Fed. The
wage rate increase of 4.4% (above), compared to 3.7% and 3.1% in the two
previous years, illustrates the upward creep of wages.
Over the past few years, gains in worker productivity (output per hour of
work) have offset any incipient price pressures from rising wages. Enhanced by
the widespread use of technology, productivity rose 1.7% last year and 1.9% in
1996, compared to an average increase of only 1% for the period 1974-1995. These
gains are a key factor in the continuation of our high-growth, low-inflation
economy. However, productivity gains slowed to 1.1% during the first quarter,
the slowest pace in over a year. So far, our economy has been in a charmed
circle where even international financial crises have proven supportive of our
economic policies. As always, we remain alert for warning signs that the
delicate balance that now prevails in our economy might be disturbed.
Market Environment
Renewed concerns regarding Asia and Latin America have resulted in an
international flight to quality and projections of the U.S. economy slowing down
due to diminished exports. In U.S. fixed-income securities, these consequences
have raised prices, an appreciation from already high price levels, and further
lowered yield levels. Recent economic indicators,
<PAGE>
especially on employment and housing, are also showing signs of potential
inflation that could push market prices lower.
These strong opposing forces have generated a potential dilemma for bond
market participants. With only potential evidence of weakness in the economy,
the 30-year Treasury bond's yield has been pushed to the 5.60% level. The
question arises whether this new level of interest rates is sustainable from
global currency devaluation and foreign economic weakness alone, or is weakness
in the U.S. domestic economy necessary to maintain current bond yield levels.
Anticipated information on U.S. wage pressures and retail sales should provide
needed conviction to many participants' sentiments.
The Portfolio
Over the past year, we took several approaches in responding to the trading
range that the market established. However, the primary portfolio positioning
has emphasized long-term maturity returns with less than long-term maturity
price volatility. To establish this we maintained a significant base of high
income producing issues which we believe stabilizes the portfolio through up and
down markets. Additionally, we found it advantageous to increase our
concentration of intermediate holdings (13-18 years), and be sellers of longer
maturity discount coupon bonds. Those holdings might have an exaggerated price
response to a given change in the market that could adversely impact the Fund.
As we have discussed in previous letters, the intermediate sector of the yield
curve continues to provide the investor with the most favorable risk/return
trade-off.
Included in this report is information relating to your Fund's financial
status. We hope you find it informative.
Very truly yours,
/s/ Richard J. Moynihan
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 18, 1998
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains paid.
Income may be subject to state and local income taxes for non-New York
residents.
** 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 capital gain
distributions. Some income may be subject to the Federal Alternative
Minimum Tax (AMT) for certain shareholders.
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc. May 31, 1998
- --------------------------------------------------------------------------------
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
$22,429
Lehman Brothers
Municipal Bond Index*
Dollars
$20,886
Dreyfus New York
Tax Exempt Bond Fund, Inc.
*Source: Lehman Brothers
Average Annual Total Returns
- --------------------------------------------------------------------------------
One Year Ended Five Years Ended Ten Years Ended
May 31, 1998 May 31, 1998 May 31, 1998
-------------- ---------------- ---------------
9.36% 5.61% 7.64%
- -----------
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 5/31/88 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.
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS MAY 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments--98.8% Amount Value
- ------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C>
New York--93.7%
Castle Rest Residential Health Care Facility, Health Care Revenue
5.60%, 8/1/2017 (Insured; FHA).............................................. $ 1,700,000 $ 1,762,781
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 5,553,900
Erie County Industrial Development Agency, Life Care Community Revenue
(Episcopal Church Home) 5.875%, 2/1/2018.................................... 11,000,000 11,036,740
Long Island Power Authority, Electric Power and Light System Revenue, Refunding:
5.25%, 12/1/2026............................................................ 5,525,000 5,468,535
5.50%, 12/1/2029............................................................ 5,000,000 5,057,100
Metropolitan Transportation Authority, Revenue:
Commuter Facilities, Service Contract 6%, 7/1/2016 (Insured; FGIC).......... 9,000,000 9,782,100
Transit Facilities, Service Contract:
7.50%, 7/1/2019 (Prerefunded 7/1/2000) (b)............................... 7,700,000 8,359,505
Refunding:
7.125%, 7/1/2009...................................................... 5,000,000 5,564,350
6.625%, 7/1/2014 (Prerefunded 7/1/2002) (b)........................... 5,950,000 6,598,669
Monroe County Industrial Development Agency, Revenue
(DePaul Community Facilities) 5.875%, 2/1/2028.............................. 1,000,000 1,000,660
Municipal Assistance Corporation for City of New York, Revenue, Refunding:
5.50%, 7/1/2001............................................................. 19,765,000 20,617,662
6%, 7/1/2005................................................................ 13,000,000 14,337,570
6%, 7/1/2006................................................................ 7,770,000 8,630,449
New York City:
7.50%, 2/1/2003............................................................. 3,500,000 3,909,290
6.375%, 8/1/2004............................................................ 16,000,000 17,365,920
5.75%, 2/1/2007 (Insured; AMBAC)............................................ 12,305,000 13,426,232
5.75%, 8/15/2008............................................................ 5,000,000 5,295,050
5.375%, 8/1/2009............................................................ 7,000,000 7,335,160
6.50%, 8/15/2009............................................................ 10,125,000 11,607,806
7.50%, 3/15/2010............................................................ 585,000 625,850
7%, 10/1/2010............................................................... 240,000 267,163
7%, 10/1/2010 (Prerefunded 10/1/2002) (b)................................... 3,715,000 4,183,350
5.50%, 11/15/2010........................................................... 1,110,000 1,169,096
3.65%, 8/1/2011............................................................. 18,775,000 19,507,976
6%, 8/1/2011................................................................ 9,750,000 10,573,095
6.25%, 8/1/2011 (Insured; FSA) (Prerefunded 8/1/2002) (b)................... 3,950,000 4,332,755
5.75%, 8/15/2011............................................................ 8,870,000 9,309,419
5.75%, 2/1/2012............................................................. 3,000,000 3,176,550
5.875%, 8/15/2013........................................................... 4,550,000 4,858,945
6.85%, 10/1/2013............................................................ 5,000,000 5,497,000
5.875%, 2/1/2016............................................................ 2,500,000 2,652,075
7.50%, 8/1/2021 (Prerefunded 8/1/2002) (b).................................. 4,435,000 5,071,954
7.50%, 8/1/2021............................................................. 565,000 633,517
</TABLE>
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C>
New York (continued)
New York City (continued):
Refunding:
5.20%, 8/1/2003.......................................................... $ 170,000 $ 176,577
5.181%, 8/1/2003 (c)..................................................... 7,415,000 7,924,781
5.30%, 8/1/2004.......................................................... 7,525,000 8,127,000
5.381%, 8/1/2004 (c)..................................................... 170,000 177,854
6.50%, 3/15/2005......................................................... 4,920,000 5,399,700
5.45%, 8/1/2005.......................................................... 160,000 168,867
5.681%, 8/1/2005 (c)..................................................... 13,770,000 15,327,387
7.50%, 2/1/2006.......................................................... 2,900,000 3,238,604
7.50%, 2/1/2006 (Prerefunded 2/1/2002) (b)............................... 1,100,000 1,240,349
7.75%, 8/15/2006 (Prerefunded 8/15/2001) (b)............................. 5,780,000 6,507,586
6.25%, 2/15/2007......................................................... 5,375,000 5,903,309
5.10%, Series A 8/1/2008 ................................................ 120,000 123,691
5.10%, Series B 8/1/2008 ................................................ 130,000 133,999
5.125%, Series A 8/1/2008 (c)............................................ 4,430,000 4,590,588
5.125%, Series B 8/1/2008 (c)............................................ 7,300,000 7,592,000
5.20%, 8/1/2009.......................................................... 120,000 123,948
5.325%, 8/1/2009 (c)..................................................... 4,220,000 4,420,450
6.25%, 8/1/2009.......................................................... 10,500,000 11,436,390
5.25%, 8/1/2010.......................................................... 130,000 134,039
5.425%, 8/1/2010 (c)..................................................... 8,105,000 8,429,200
6.25%, 8/1/2010.......................................................... 9,605,000 10,588,936
6.25%, 8/1/2010 (Prerefunded 8/1/2004) (b)............................... 395,000 443,297
5.683%, 11/15/2010....................................................... 5,940,000 6,318,675
6.375%, 8/15/2012 (Prerefunded 8/15/2005) (b)............................ 2,635,000 2,999,763
6.375%, 8/15/2012........................................................ 10,365,000 11,456,227
5.35%, 8/1/2013.......................................................... 19,660,000 20,050,448
6%, 8/1/2014............................................................. 2,250,000 2,419,425
5.25%, 8/1/2017.......................................................... 7,000,000 7,002,520
6%, 8/1/2017............................................................. 3,000,000 3,216,780
7%, 2/1/2020............................................................. 10,000,000 10,928,500
5.875%, 8/1/2024......................................................... 16,000,000 16,895,360
6.125%, 8/1/2025......................................................... 12,250,000 13,274,345
New York City Housing Development Corp., MFHR Refunding 5.625%, 5/1/2012....... 14,460,000 15,033,339
New York City Industrial Development Agency:
Civic Facility Revenue, University and College Improvements
(College of New Rochelle Project) 5.80%, 9/1/2026........................ 1,400,000 1,451,422
IDR, Refunding (Brooklyn Navy Yard Cogen Partners):
6.20%, 10/1/2022......................................................... 2,750,000 3,049,778
5.65%, 10/1/2028......................................................... 10,500,000 10,603,215
5.75%, 10/1/2036......................................................... 9,000,000 9,119,160
Industrial Improvements, Special Facility Revenue (Northwest Airlines, Inc.)
6%, 6/1/2027............................................................. 5,000,000 5,291,150
</TABLE>
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C>
New York (continued)
New York City Municipal Water Finance Authority, Water and Sewer Systems Revenue:
5.625%, 6/15/2011........................................................... $ 16,000,000 $ 16,712,640
7%, 6/15/2015 (Prerefunded 6/15/2001) (b)................................... 5,655,000 6,180,745
6.20%, 6/15/2021 (Insured; AMBAC)........................................... 9,700,000 10,600,063
5.75%, 6/15/2029............................................................ 41,000,000 42,974,970
Refunding 5.625%, 6/15/2019................................................. 17,335,000 17,923,870
State of New York:
5.875%, 3/15/2014........................................................... 3,000,000 3,199,410
5.50%, 7/15/2016............................................................ 11,165,000 11,594,741
Refunding:
5.625%, 8/15/2009........................................................ 15,000,000 16,079,550
5.70%, 8/15/2011......................................................... 4,500,000 4,806,675
6.125%, 11/15/2011....................................................... 3,130,000 3,368,318
5.80%, 10/1/2013......................................................... 4,715,000 5,088,287
New York State Dormitory Authority, Revenues:
(City University Systems):
5.25%, 7/1/2008 (Insured; FGIC).......................................... 200,000 212,216
5.54%, 7/1/2008 (Insured; FGIC) (c)...................................... 4,900,000 5,469,625
5.35%, 7/1/2009 (Insured; FGIC).......................................... 200,000 213,624
5.74%, 7/1/2009 (Insured; FGIC) (c)...................................... 3,950,000 4,463,500
7%, 7/1/2009............................................................. 8,500,000 9,823,960
7.50%, 7/1/2010 (Insured; FGIC).......................................... 5,000,000 6,324,800
5.625%, 7/1/2016......................................................... 9,120,000 9,691,915
Refunding:
5.60%, 7/1/2010....................................................... 12,000,000 12,475,560
5.375%, 7/1/2014 (Insured; FGIC)...................................... 6,500,000 6,719,180
5.50%, 7/1/2016 (Insured; AMBAC)...................................... 24,000,000 24,959,760
5.625%, 7/1/2019...................................................... 11,550,000 11,821,079
Court Facilities Lease Revenues 5.625%, 5/15/2013........................... 5,000,000 5,158,000
(New York Medical College) 6.875%, 7/1/2021 (Insured; FGIC)................. 19,310,000 21,212,035
Health, Hospital and Nursing Home:
(Brookdale Hospital) 5.20%, 2/15/2013.................................... 2,500,000 2,513,750
(Center for Nursing) 5.45%, 8/1/2017..................................... 2,110,000 2,139,857
(Frances Schervier Home) 5.50%, 7/1/2017 (Insured; AGIC)................. 4,000,000 4,098,280
(Interfaith Medical Center):
5.375%, 2/15/2013..................................................... 4,580,000 4,657,310
5.375%, 2/15/2015..................................................... 5,065,000 5,119,449
(Lakeside/Beikirch Nursing Home) 6%, 2/1/2037 (Insured; FHA) ............ 5,000,000 5,324,050
(Menorah Campus) Refunding:
5.95%, 2/1/2017 (Insured; FHA)........................................ 3,000,000 3,202,530
6.10%, 2/1/2037 (Insured; FHA)........................................ 8,500,000 9,119,820
(Mental Health Service Facilities) 5.25%, 8/15/2008 (Insured; AMBAC)..... 50,000 52,956
(North General Hospital):
5.125%, 2/15/2008..................................................... 500,000 512,460
5.20%, 2/15/2016...................................................... 4,000,000 3,987,760
5.30%, 2/15/2019...................................................... 5,000,000 5,006,500
</TABLE>
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C>
New York (continued)
New York State Dormitory Authority, Revenues (continued):
State University Educational Facilities:
7.50%, 5/15/2011......................................................... $ 3,750,000 $ 4,595,850
7%, 5/15/2018 (Prerefunded 5/15/2000) (b)................................ 7,010,000 7,548,368
Refunding:
5.875%, 5/15/2011..................................................... 20,000,000 22,046,400
5.50%, 5/15/2013...................................................... 10,000,000 10,652,700
5.50%, 5/15/2013 (Insured; FGIC)...................................... 6,035,000 6,508,929
7.375%, 5/15/2014..................................................... 12,945,000 13,906,037
5%, 5/15/2018......................................................... 2,000,000 1,955,500
New York State Energy Research and Development Authority,
Electric Facilities Revenue:
(Consolidated Edison Co. Project) 7.125%, 12/1/2029...................... 13,000,000 14,862,770
(Long Island Lighting Company Project):
7.15%, 9/1/2019....................................................... 8,930,000 9,823,000
6.90%, 8/1/2022....................................................... 3,010,000 3,313,107
NewYork State Environmental Facilities Corp., State Water Pollution Control
Revolving Fund Revenue (New York City Municipal Water Finance Authority
Project):
6.875%, 6/15/2010 (Prerefunded 6/15/2001) (b)............................ 18,800,000 20,664,772
6.875%, 6/15/2010........................................................ 2,540,000 2,779,268
7.25%, 6/15/2010 (Prerefunded 6/15/2001) (b)............................. 15,500,000 17,211,975
7.25%, 6/15/2010......................................................... 565,000 622,342
7%, 6/15/2012 (Prerefunded 6/15/2001) (b)................................ 21,105,000 23,286,202
7%, 6/15/2012............................................................ 555,000 605,905
New York State Housing Finance Agency, Revenue:
Health Facilities, Refunding:
5.875%, 5/1/2004......................................................... 6,500,000 6,963,320
6%, 5/1/2008............................................................. 10,000,000 10,892,600
Housing Projects, Refunding 6.10%, 11/1/2015 (Insured; FSA)................. 13,120,000 14,249,370
Insured Multi-Family Mortgage 7%, 8/15/2022................................. 4,495,000 4,821,697
Multi-Family Housing Second Mortgage 6.95%, 8/15/2024 (Insured; FHA)........ 2,865,000 3,034,551
Service Contract Obligation:
5.375%, 9/15/2011........................................................ 13,520,000 13,784,316
Refunding 5.50%, 9/15/2018............................................... 15,625,000 15,881,406
New York State Local Government Assistance Corp.:
7%, 4/1/2005................................................................ 4,300,000 4,721,314
6%, 4/1/2024................................................................ 17,005,000 18,256,908
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 9,271,500
(New York Hospital) 6.50%, 8/15/2029 (Insured; AMBAC).................... 12,000,000 13,753,560
(Saint Luke's Hospital) 7.45%, 2/15/2029 (Prerefunded 2/15/2000) (b)..... 10,000,000 10,765,900
</TABLE>
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C>
New York (continued)
New York State Medical Care Facilities Finance Agency, Revenue (continued):
Hospital and Nursing Home FHA Insured Mortgage:
6.125%, 2/15/2015........................................................ $ 13,270,000 $ 14,317,401
(Saint Joseph's and Bayley Seton Hospital) Refunding 6.45%, 2/15/2009.... 6,000,000 6,626,280
(Saint Luke's and Waterfront Nursing Homes) 6.85%, 2/15/2012............. 6,000,000 6,535,080
Insured Long-Term Health Care 6.45%, 11/1/2010 (Insured; FSA)............... 10,875,000 11,931,833
Mental Health Services:
5.375%, 8/15/2013 (Insured, FGIC)........................................ 4,900,000 5,030,585
Refunding, Custodial Receipts 5.375%, 2/15/2014 (Insured; FGIC).......... 15,000,000 15,326,250
Mental Health Services Facilities Improvement 6%, 2/15/2025 (Insured; MBIA). 8,710,000 9,429,620
New York State Mortgage Agency, Homeowner Mortgage, Revenue:
5.10%, 10/1/2007............................................................ 150,000 154,290
5.286%, 10/1/2007 (c)....................................................... 860,000 898,700
5.40%, 10/1/2010............................................................ 160,000 164,771
5.886%, 10/1/2010 (c)....................................................... 1,380,000 1,449,000
5.55%, 10/1/2012............................................................ 190,000 197,163
6.186%, 10/1/2012 (c)....................................................... 2,405,000 2,567,338
6.60%, 10/1/2019............................................................ 10,685,000 11,595,255
5.80%, 10/1/2028............................................................ 9,000,000 9,346,050
5.85%, 10/1/2028............................................................ 10,000,000 10,422,100
Refunding:
6%, 4/1/2017............................................................. 6,000,000 6,403,680
6%, 10/1/2022............................................................ 5,000,000 5,297,200
6.20%, 10/1/2026......................................................... 28,100,000 30,173,218
New York State Power Authority, Revenue and General Purpose Refunding:
6.625%, 1/1/2012 (Prerefunded 1/1/2002) (b)................................. 4,210,000 4,640,725
6.625%, 1/1/2012 (Prerefunded 1/1/2002) (b)................................. 2,280,000 2,513,267
New York State Thruway Authority, Revenues:
Highway and Bridge Trust Fund 5.50%, 4/1/2015 (Insured; MBIA)............... 15,800,000 16,403,402
(Local Highway and Bridge) Service Contract:
7.25%, 1/1/2010 (Prerefunded 1/1/2001) (b)............................... 13,000,000 14,275,170
5.75%, 4/1/2013 (Insured; MBIA).......................................... 7,185,000 7,702,104
5.75%, 4/1/2016.......................................................... 35,950,000 37,370,744
Refunding:
5.50%, 4/1/2004....................................................... 250,000 263,220
5.914%, 4/1/2004 (c).................................................. 3,875,000 4,243,125
5%, 4/1/2006.......................................................... 250,000 255,513
4.914%, 4/1/2006 (c).................................................. 10,660,000 11,019,775
6%, 4/1/2011.......................................................... 5,000,000 5,478,250
6%, 4/1/2012.......................................................... 6,195,000 6,778,135
5%, 4/1/2017.......................................................... 8,250,000 7,985,423
New York State Urban Development Corp., Lease Revenue:
(Correctional Capital Facilities):
5.25%, 1/1/2013.......................................................... 6,135,000 6,176,657
5.625%, 1/1/2017......................................................... 10,240,000 10,502,656
Refunding 5.50%, 1/1/2016................................................ 18,385,000 18,622,718
</TABLE>
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C>
New York (continued)
New York State Urban Development Corp., Lease Revenue (continued):
Refunding:
5.50%, 7/1/2016 (Insured; FHA)........................................... $ 13,250,000 $ 13,822,665
5.75%, 1/1/2013.......................................................... 10,030,000 10,401,812
(State Facilities) Refunding 5.70%, 4/1/2020................................ 20,000,000 21,403,400
Port Authority of New York and New Jersey:
(Consolidated Bond 93rd Series) 6.125%, 6/1/2094............................ 15,000,000 17,344,200
(Consolidated Bond 99th Series) 5.90%, 11/1/2012 (Insured; FGIC)............ 6,840,000 7,340,209
(Consolidated Bond 99th Series) 6%, 11/1/2013 (Insured; FGIC)............... 5,810,000 6,250,979
Special Obligation Revenue (JFK International Air Terminal-6):
6.25%, 12/1/2014 (Insured; MBIA)......................................... 10,000,000 11,540,600
5.75%, 12/1/2022 (Insured; MBIA)......................................... 24,000,000 25,345,200
Port Jervis Industrial Development Authority, Revenue
(Franciscan Health Partnership / Mercy Community Hospital) 5.50%, 11/1/2016. 1,000,000 1,004,160
Tompkins County Industrial Development Agency, Civic Facility Revenue
(Ithacare Center Project) 6.20%, 2/1/2037 (Insured; FHA).................... 6,000,000 6,486,180
Triborough Bridge and Tunnel Authority, Revenues:
7.375%, 1/1/2016 (Prerefunded 1/1/2000) (b)................................. 8,280,000 8,837,492
General Purpose:
5.30%, 1/1/2017.......................................................... 9,185,000 9,351,524
Refunding 5%, 1/1/2014................................................... 5,000,000 5,108,650
Special Obligation Refunding 7.10%, 1/1/2010............................. 9,000,000 9,823,050
United Nations Development Corporation, Revenue, Refunding:
Senior Lien:
5.10%, 7/1/2008.......................................................... 130,000 130,588
5.148%, 7/1/2008 (c)..................................................... 1,480,000 1,487,400
5.20%, 7/1/2009.......................................................... 130,000 130,573
5.348%, 7/1/2009 (c)..................................................... 1,695,000 1,703,475
5.40%, 7/1/2014.......................................................... 120,000 120,331
5.748%, 7/1/2014 (c)..................................................... 565,000 568,531
5.60%, 7/1/2026.......................................................... 7,000,000 7,025,200
Subordinated Lien:
5.748%, 7/1/2014 (c)..................................................... 1,315,000 1,323,218
5.40%, 7/1/2014.......................................................... 120,000 120,331
5.60%, 7/1/2026.......................................................... 1,000,000 1,003,600
Yonkers Industrial Development Agency, Civic Facilities Revenue
(Saint Joseph's Hospital):
6.15%, Series A 3/1/2015................................................. 1,000,000 1,005,430
6.15%, Series C 3/1/2015................................................. 3,500,000 3,519,005
U.S. Related--5.1%
Commonwealth of Puerto Rico, Public Improvement, Refunding:
5.50%, 7/1/2010 (Insured; FSA).............................................. 500,000 545,475
6.201%, 7/1/2010 (c)........................................................ 4,800,000 5,646,000
5.50%, 7/1/2012............................................................. 10,000,000 10,668,000
</TABLE>
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments (continued) May 31, 1998
<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C>
U.S. Related (continued)
Commonwealth of Puerto Rico, Public Improvement, Refunding (continued):
5.50%, 7/1/2013............................................................. $ 3,000,000 $ 3,200,190
Zero Coupon, 7/1/2015....................................................... 5,000,000 2,132,200
6%, 7/1/2026................................................................ 5,000,000 5,686,650
Puerto Rico Aqueduct and Sewer Authority, Revenue 10.25%, 7/1/2009............. 13,750,000 18,958,363
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6%, 7/1/2022................................................................ 9,500,000 10,662,895
5%, 7/1/2036................................................................ 6,000,000 5,899,380
Refunding 5.50%, 7/1/2015 (Insured; MBIA)................................... 8,000,000 8,608,720
Puerto Rico Public Buildings Authority, Public Education and Health Facilities
Lease Revenue, Refunding 5.75%, 7/1/2015 (Guaranteed; Commonwealth of Puerto Rico) 4,250,000 4,456,678
Virgin Island Public Finance Authority, Revenue, Refunding
(Senior Lien) 5.50%, 10/1/2015.............................................. 8,000,000 8,142,960
--------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $1,509,344,224)....................................................... $1,624,377,707
==============
Short-Term Municipal Investments--1.2%
- -------------------------------------------------------------------------------
New York--1.0%
New York City, Revenue, VRDN:
4% (Insured; MBIA, SBPA; Bank of Nova Scotia) (d)........................... $ 5,600,000 $ 5,600,000
3.60% (LOC; Morgan Guaranty Trust) (a,d).................................... 3,000,000 3,000,000
New York City Municipal Water Finance Authority, Water and Sewer System Revenue,
VRDN 4% (SBPA; FGIC) (d).................................................... 4,800,000 4,800,000
New York State Environmental Facilities Corp., RRR, VRDN
(Huntington Project) 4.05% (LOC; Union Bank of Switzerland) (a,d)........... 1,300,000 1,300,000
Port Authority of New York and New Jersey, Special Obligation Revenue, Refunding
VRDN:
3.85% (SBPA; Morgan Guaranty Trust) (d).................................. 1,300,000 1,300,000
4% (SBPA; Morgan Guaranty Trust) (d)..................................... 1,200,000 1,200,000
U.S. Related--.2%
Puerto Rico Electric Power Authority, Electric Power and Light Revenue, Refunding,
VRDN 3.425% (Insured; FSA) (d).............................................. 3,000,000 3,000,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $20,200,000).......................................................... $ 20,200,000
==============
TOTAL INVESTMENTS--100.0%
(cost $1,529,544,224)....................................................... $1,644,577,707
==============
</TABLE>
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Summary of Abbreviations
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
AGIC Asset Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
AMBAC American Municipal Bond Assurance Corporation Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FSA Financial Security Assurance SBPA Standby Bond Purchase Agreement
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>
Summary of Combined Ratings (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
- ------ ------- ---------------- -----------------
<S> <C> <C> <C>
AAA Aaa AAA 24.7%
AA Aa AA 18.1
A A A 38.1
BBB Baa BBB 15.7
BB Ba BB .9
F1 MIG1 SP1 1.1
Not Rated (f) Not Rated (f) Not Rated (f) 1.4
-------
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) Inverse floater security--the interest rate is subject to change
periodically.
(d) 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.
(e) Fitch currently provides creditworthiness information for a limited number
of investments.
(f) Securities which, while not rated by Fitch, Moody's and Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
See notes to financial statements.
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities May 31, 1998
<TABLE>
<CAPTION>
Cost Value
--------------- ----------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $1,529,544,224 $1,644,577,707
Interest receivable.............................. 28,842,389
Prepaid expenses................................. 365,075
--------------
1,673,785,171
--------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 845,946
Cash overdraft due to Custodian.................. 421,291
Payable for shares of Common Stock redeemed...... 87,568
Accrued expenses................................. 237,527
--------------
1,592,332
--------------
NET ASSETS..................................................................... $1,672,192,839
==============
REPRESENTED BY: Paid-in capital.................................. $1,546,990,906
Accumulated undistributed investment income--net. 431,679
Accumulated net realized gain (loss) on investments 9,736,771
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4......................... 115,033,483
--------------
NET ASSETS..................................................................... $1,672,192,839
==============
SHARES OUTSTANDING
(300 million shares of $.01 par value Common Stock authorized)................. 108,123,498
NET ASSET VALUE, offering and redemption price per share--Note 3(d)............ $15.47
======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Operations Year Ended May 31, 1998
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................ $ 93,857,156
EXPENSES: Management fee--Note 3(a).................. $ 10,080,981
Shareholder servicing costs--Note 3(b)..... 1,847,214
Custodian fees............................. 112,653
Directors' fees and expenses--Note 3(c).... 57,413
Professional fees.......................... 47,340
Prospectus and shareholders' reports....... 40,220
Registration fees.......................... 31,627
Loan commitment fees--Note 2............... 14,772
Interest expense--Note 2................... 1,998
Miscellaneous.............................. 90,077
------------
Total Expenses........................... 12,324,295
Less reduction in management fee due to
undertaking--Note 3(a)................... (78,731)
------------
Net Expenses............................. 12,245,564
------------
INVESTMENT INCOME--NET................................................... 81,611,592
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments.... $ 19,763,787
Net unrealized appreciation (depreciation) on
investments.............................. 50,902,492
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................... 70,666,279
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $152,277,871
============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended Year Ended
May 31, 1998 May 31, 1997
--------------- ---------------
<S> <C> <C>
OPERATIONS:
Investment income--net.............................................. $ 81,611,592 $ 87,835,545
Net realized gain (loss) on investments............................. 19,763,787 5,326,888
Net unrealized appreciation (depreciation) on investments........... 50,902,492 45,283,672
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations 152,277,871 138,446,105
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net.............................................. (81,414,282) (87,601,176)
Net realized gain on investments.................................... (15,301,748) (9,004,843)
-------------- --------------
Total Dividends............................................... (96,716,030) (96,606,019)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold....................................... 703,593,539 2,685,271,128
Dividends reinvested................................................ 67,930,411 68,017,640
Cost of shares redeemed............................................. (857,579,387) (2,791,120,807)
-------------- --------------
Increase (Decrease) in Net Assets from Capital Stock Transactions (86,055,437) (37,832,039)
-------------- --------------
Total Increase (Decrease) in Net Assets.................... (30,493,596) 4,008,047
NET ASSETS:
Beginning of Period................................................. 1,702,686,435 1,698,678,388
-------------- --------------
End of Period....................................................... $1,672,192,839 $1,702,686,435
============== ==============
Undistributed investment income--net................................... $ 431,679 $ 234,369
-------------- --------------
Shares Shares
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold......................................................... 45,942,093 180,835,120
Shares issued for dividends reinvested.............................. 4,418,815 4,558,729
Shares redeemed..................................................... (55,942,685) (187,723,881)
-------------- --------------
Net Increase (Decrease) in Shares Outstanding................. (5,581,777) (2,330,032)
============== ==============
</TABLE>
See notes to financial statements.
<PAGE>
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: 1998 1997 1996 1995 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $14.97 $14.64 $15.19 $15.06 $16.06
------ ------ ------ ------ ------
Investment Operations:
Investment income--net............................ .75 .76 .79 .84 .88
Net realized and unrealized gain (loss)
on investments................................. .63 .41 (.51) .23 (.62)
------ ------ ------ ------ ------
Total from Investment Operations.................. 1.38 1.17 .28 1.07 .26
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net............. (.74) (.76) (.79) (.84) (.89)
Dividends from net realized gain on investments... (.14) (.08) (.04) (.08) (.37)
Dividends in excess of net realized gain on
investments -- -- -- (.02) --
------ ------ ------ ------ ------
Total Distributions............................... (.88) (.84) (.83) (.94) (1.26)
------ ------ ------ ------ ------
Net asset value, end of period.................... $15.47 $14.97 $14.64 $15.19 $15.06
====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN.............................. 9.36% 8.14% 1.84% 7.55% 1.42%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... .73% .74% .71% .72% .71%
Ratio of net investment income to average
net assets..................................... 4.86% 5.10% 5.24% 5.70% 5.49%
Portfolio Turnover Rate........................... 35.86% 74.46% 81.93% 49.03% 35.66%
Net assets, end of period (000's Omitted)......... $1,672,193 $1,702,686 $1,698,678 $1,879,197 $1,941,233
</TABLE>
See notes to financial statements.
<PAGE>
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. Under the terms of the custodian
agreement, the Fund receives net earnings credits based on available cash
balances left on deposit.
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.
<PAGE>
Dreyfus New York Tax Exempt Bond Fund, Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
The average daily amount of borrowings outstanding during the period
ended May 31, 1998 was approximately $32,900 with a related weighted average
annualized interest rate of 6.08%.
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. The Manager has undertaken from January
15, 1998 through May 31, 1998 to reduce the management fee paid by the Fund, to
the extent that the Fund's aggregate annual expenses (exclusive of certain
expenses as described above) exceed an annual rate of .75 of 1% of the value of
the Fund's average daily net assets. The reduction in management fee, pursuant
to the undertaking amounted to $78,731 during the period ended May 31, 1998.
(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, 1998, the Fund was charged $1,128,668 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. During the period
ended May 31, 1998, the Fund was charged $505,387 pursuant to the transfer
agency agreement.
(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) A .10% redemption fee is charged and retained by the Fund 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, 1998,
redemption fees amounted to $197,108. NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended May 31, 1998 amounted
to $579,021,098 and $685,288,053, respectively.
At May 31, 1998, accumulated net unrealized appreciation on investments was
$115,033,483, consisting of $115,375,875 gross unrealized appreciation and
$342,392 gross unrealized depreciation.
At May 31, 1998, 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).
<PAGE>
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, 1998, 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, 1998 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, 1998, 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
New York, New York
July 2, 1998
Important Tax Information (Unaudited)
In accordance with Federal tax law, the Fund hereby makes the following
designations regarding its fiscal year ended May 31, 1998:
-- All 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).
--The Fund hereby designates $.0834 per share as a long-term capital gain
distribution (of which 33.09% is subject to the 20% maximum Federal tax rate)
of the $.1382 per share paid on December 4, 1997.
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 1998 calendar year on Form 1099-DIV
which will be mailed by January 31, 1999.
<PAGE>
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. 980AR985
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
5/31/88 10,000 10,000
5/31/89 11,151 11,139
5/31/90 11,967 11,743
5/31/91 13,173 12,808
5/31/92 14,466 14,118
5/31/93 16,197 15,901
5/31/94 16,597 16,126
5/31/95 18,109 17,343
5/31/96 18,937 17,662
5/31/97 20,505 19,098
5/31/98 22,429 20,886
*Source: Lehman Brothers
