LETTER TO SHAREHOLDERS
PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS MUNICIPAL BOND
FUND, INC.
AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX *
[Exhibit A]
* Source: Lehman Brothers
<TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FIVE YEARS ENDED TEN YEARS ENDED
AUGUST 31, 1994 AUGUST 31, 1994 AUGUST 31, 1994
------------------ ------------------ ------------------
<S> <C> <C> <C>
(1.63%) 7.55% 9.41%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in the Dreyfus Municipal
Bond Fund on 8/31/84 to a $10,000 investment made in the Lehman Brothers
Municipal Bond Index on that date. All dividends and capital gain
distributions are reinvested.
The Fund invests primarily in municipal securities and its performance takes
into account fees and expenses. Unlike the Fund, the Lehman Brothers
Municipal Bond Index is an unmanaged total return performance benchmark for
the long-term, investment-grade tax exempt bond market, calculated by using
municipal bonds selected to be representative of the market. The Index does
not take into account charges, fees and other expenses. Further information
relating to Fund performance, including expense reimbursements, if
applicable, is contained in the Condensed Financial Information section of
the Prospectus and elsewhere in this report.
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--96.0% AMOUNT VALUE
---------------- ---------------
<S> <C> <C>
ALABAMA--1.0%
Alabama Housing Finance Authority, Single Family Mortgage Revenue
6.80%, 4/1/2025......................................................... $ 5,000,000 $ 5,007,500
Camden Industrial Development Board, Pollution Control Facilities Revenue, Refunding
(Macmillian Bloedel Project) 7.75%, 5/1/2009............................ 8,000,000 8,564,080
Columbia Industrial Development Board, PCR (Alabama Power Farley Plant Project)
9.25%, 12/1/2015........................................................ 3,800,000 4,096,666
Industrial Development Board of the Town of Courtland, SWDR
(Champion International Corp. Project) 7%, 11/1/2022.................... 8,100,000 8,221,095
West Jefferson Industrial Development Board, PCR, Refunding
(Alabama Power Co.- Miller Plant) 6.05%, 5/1/2023 (Insured; MBIA)....... 15,000,000 14,620,050
ALASKA--.8%
Valdez, Marine Terminal Revenue, Refunding (BP Pipeline Inc. Project)
5.85%, 8/1/2025......................................................... 37,000,000 33,357,720
CALIFORNIA--6.9%
Airport Commission City and County of San Francisco,
(San Francisco International Airport) 6.50%, 5/1/2015................... 10,100,000 10,322,604
California:
5.50%, 3/1/2010......................................................... 13,330,000 12,573,656
7.814%, 4/1/2023 (a,b).................................................. 20,000,000 17,275,000
California Higher Education Loan Authority, Inc.,
Student Loan Revenue, Refunding 6.50%, 6/1/2005......................... 19,250,000 19,432,682
California Pollution Control Financing Authority, Revenue,
Solid Waste Disposal (North County Recycling Center)
6.75%, 7/1/2011 (LOC; Union Bank of Switzerland) (c).................... 10,000,000 10,280,700
Los Angeles Department of Water and Power, Electric Plant Revenue:
6.125%, 1/15/2033 ...................................................... 28,000,000 26,596,080
6.125%, 1/15/2033 ...................................................... 22,600,000 21,466,836
8.685%, 1/15/2033 (a,b)................................................. 85,000 76,394
Orange County Local Transportation Authority, Sales Tax Revenue:
6.13%, 2/15/2009(a)..................................................... 5,400,000 4,334,580
6.18%, 2/15/2010(a)..................................................... 10,000,000 7,986,200
6.23%, 2/15/2011(a)..................................................... 10,000,000 7,952,000
Pleasanton Joint Powers Financing Authority, Reassessment Revenue 6.15%, 9/2/2012 3,445,000 3,312,505
Sacramento Municipal Utility District, Electric Revenue Refunding
6.97%, 11/15/2015 (Insured; MBIA) (a)................................... 16,500,000 14,272,500
San Diego, IDR (San Diego Gas and Electric Co.) 5.90%, 9/1/2018............. 10,000,000 9,508,300
San Diego County, COP, Refunding (Interim Justice Facilities Project) 6.50%, 8/1/2007 10,110,000 10,475,578
San Marcos Public Facilities Authority, Revenue, Refunding, Public Improvement
(Civic Center) 6.20%, 8/1/2022.......................................... 7,245,000 6,689,453
Southern California Public Power Authority, Power Project Revenue, Refunding
5.50%, 7/1/2012......................................................... 20,000,000 18,540,600
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
CALIFORNIA (CONTINUED)
State Public Works Board of the State of California, LR:
(Community College Projects) 6%, 10/1/2014.............................. $ 11,000,000 $ 10,589,810
(Department of Corrections - California State Prison-Madera County)
5.50%, 6/1/2015....................................................... 19,000,000 16,968,900
(Various University of California Projects) 6.375%, 10/1/2014........... 3,000,000 2,999,790
University of California, Revenue (Multi-Purpose Project)
6.75%, 9/1/2023 (Insured; AMBAC)........................................ 37,000,000 40,826,910
COLORADO--2.9%
Colorado Health Facilities Authority, Retirement Facilities Revenue
(Liberty Heights):
Zero Coupon, 7/15/2022................................................ 37,500,000 5,292,375
Zero Coupon, 7/15/2024................................................ 91,150,000 11,017,300
Dawson Ridge Metropolitan District No. 1, Refunding:
Zero Coupon, 10/1/2017.................................................. 15,000,000 3,030,300
Zero Coupon, 10/1/2022.................................................. 47,535,000 6,791,325
City and County of Denver, Airport Revenue:
4.25%, 9/1/1995......................................................... 10,000,000 9,994,800
8.25%, 11/15/2012....................................................... 10,000,000 10,289,800
6.75%, 11/15/2013....................................................... 8,765,000 8,027,425
8%, 11/15/2017.......................................................... 8,175,000 8,130,855
7.25%, 11/15/2023....................................................... 6,650,000 6,340,974
8.50%, 11/15/2023....................................................... 30,500,000 31,839,560
7.50%, 11/15/2025....................................................... 15,000,000 14,731,500
CONNECTICUT--.6%
Connecticut Health and Educational Facilities Authority, Revenue
(Yale University) 8.482%, 6/10/2030 (a)................................. 5,000,000 4,637,500
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
6.70%, 11/15/2012....................................................... 4,000,000 4,112,520
6.20%, 5/15/2014........................................................ 3,000,000 2,941,200
Eastern Connecticut Resource Recovery Authority:
(American Fuel Co. Project) 6.45%, 11/15/2022........................... 7,325,000 7,379,425
Solid Waste Revenue (Wheelabrator Lisbon Project) 5.50%, 1/1/2014....... 4,425,000 3,808,907
DELAWARE--.2%
Delaware Economic Development Authority, Water Development Revenue
(Wilmington Suburban Water Corp. Project) 6.80%, 12/1/2023.............. 8,000,000 8,106,800
DISTRICT OF COLUMBIA--2.1%
District of Columbia:
GO 6%, 6/1/2009......................................................... 10,955,000 10,886,422
Revenue 9.515%, 4/1/2022 (a)............................................ 4,000,000 4,000,000
Metropolitan Washington Airports Authority, Airport System Revenue:
6.625%, 10/1/2012 (Insured; MBIA)....................................... 40,400,000 41,853,996
6.625%, 10/1/2019 (Insured; MBIA)....................................... 24,800,000 25,300,216
FLORIDA--6.9%
Brevard County, Industrial Development Revenue (NUI Corp. Project)
6.40%, 10/1/2024........................................................ 9,000,000 9,120,240
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
FLORIDA (CONTINUED)
Charlotte County, HR
(Bon Secours Health System - Saint Joseph's Hospital Project) 8.25%, 8/15/2018 $ 7,000,000 $ 8,001,000
Dade County, Aviation Facilities Revenue:
6.125%, 10/1/2020 (Insured; MBIA)....................................... 20,000,000 19,679,000
6.60%, 10/1/2022 (Insured; MBIA)........................................ 10,000,000 10,326,100
Escambia County, PCR (Champion International Corp. Project)
6.90%, 8/1/2022......................................................... 9,000,000 9,030,600
Florida (Jacksonville Transportation Authority) 9.20%, 1/1/2015............. 2,000,000 2,757,540
Florida State Board of Education, Public Education Capital Outlay:
5.75%, 6/1/2019......................................................... 10,000,000 9,493,700
5.875%, 6/1/2023 ....................................................... 40,000,000 38,260,800
Florida Community Services Corp. Walton County Water and Sewer Revenue
(South Walton County Regional Utility):
6.95%, 3/1/2012....................................................... 3,000,000 3,204,870
7%, 3/1/2018.......................................................... 3,500,000 3,768,310
Florida Housing Finance Agency, SFMR Zero Coupon, 1/1/2016.................. 43,205,000 3,974,428
Florida Municipal Power Agency, Revenue (All Requirements
Power Supply Project) 5.10% 10/1/2025................................... 11,710,000 9,844,831
Hospital Board of Directors of Lee County, HR, Refunding
(Lee Memorial Hospital Project) 9.219%, 4/1/2020 (Insured; MBIA) (a).... 17,500,000 17,828,125
Jacksonville, Capital Improvement Revenue (Gator Bowl Project)
6%, 10/1/2025 (Insured; AMBAC).......................................... 10,000,000 9,847,000
Nassau County, PCR, Refunding (ITT Rayonier Project) 7.65%, 6/1/2006........ 5,935,000 6,253,472
Orange County Health Facilities Authority,
Pooled Hospital Loan Revenue, Refunding:
7.875%, Series A, 12/1/2025 (Insured; FGIC)........................... 26,915,000 28,529,900
7.875%, Series B, 12/1/2025 (Insured; BIGI)........................... 16,555,000 17,548,300
Palm Beach County, Solid Waste Industrial Development Revenue:
(Okeelanta Power Limited Partnership Project) 6.70%, 2/15/2015.......... 5,000,000 4,840,050
(Osceola Power Limited Partnership) 6.95%, 1/1/2022..................... 17,300,000 17,260,383
Tampa, Water and Sewer System Revenue:
6.25%, 10/1/2012 (Insured; FGIC) ....................................... 20,000,000 20,433,600
6.60%, 10/1/2014 (Insured; FGIC)........................................ 20,000,000 21,931,800
Volusia County, Airport System Revenue (Daytona Beach Regional Airport):
7%, 10/1/2021 (Insured; MBIA)........................................... 810,000 907,378
7%, 10/1/2021 (Insured; MBIA)........................................... 2,390,000 2,570,110
GEORGIA--.7%
Atlanta Urban Residential Finance Authority, Single Family Mortgage Revenue
Zero Coupon, 10/1/2016.................................................. 33,000,000 7,084,440
Fulco Hospital Authority, Revenue Anticipation Certificates
(Saint Joseph's Hospital of Atlanta, Inc.) 5.50%, 10/1/2014............. 9,200,000 8,166,288
Georgia Housing and Finance Authority, Revenue, Homeownership Mortgage
Zero Coupon, 12/1/2031.................................................. 135,825,000 9,397,732
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
GEORGIA (CONTINUED)
Henry County and Henry County Water and Sewerage Authority,
Water and Sewerage Revenue, Refunding and Improvement 5.125%, 2/1/2013.. $ 5,000,000 $ 4,480,100
IDAHO--.3%
Idaho Housing Agency, Multi-Family Housing Refunding
6.70%, 7/1/2024......................................................... 10,050,000 10,109,898
ILLINOIS--6.1%
Bryant, PCR, Refunding (Central Illinois Light Co. Project)
5.90%, 8/1/2023......................................................... 11,000,000 10,197,330
Chicago O'Hare International Airport, Special Facilities Revenue:
(Lufthansa German Airlines Project)
7.125%, 5/1/2018 (LOC; Bayerische Vereinsbank) (c).................... 4,650,000 4,858,459
(United Airlines Inc. Project):
8.20%, 5/1/2018....................................................... 19,535,000 20,712,374
8.40%, 5/1/2018....................................................... 20,440,000 21,664,152
8.50%, 5/1/2018....................................................... 6,500,000 6,905,925
8.85%, 5/1/2018....................................................... 15,665,000 17,161,007
Illinois, GO 5.75%, 4/1/2013................................................ 4,000,000 3,841,080
Illinois Development Finance Authority, Revenue:
(Community Rehabilitation Providers Facilities) 8.75%, 3/1/2010......... 19,955,000 21,209,371
Pollution Control, Refunding (Public Service Co.) 5.70%, 8/15/2026...... 8,650,000 7,873,403
Retirement Housing (Regency Park):
Zero Coupon, 4/15/2020................................................ 55,000,000 8,979,300
Zero Coupon, 7/15/2023................................................ 118,400,000 15,148,096
Illinois Educational Facilities Authority, Revenue, Refunding
(Illinois Institute of Technology):
6.60%, 12/1/2009...................................................... 3,365,000 3,300,560
6.875%, 12/1/2015..................................................... 7,250,000 7,301,040
Illinois Health Facilities Authority, Revenue:
(Beverly Farm Foundation) 9.125%, 12/15/2015............................ 3,730,000 4,065,439
Refunding:
(Brokaw-Mennonite Association-Bromenn Healthcare)
6.25%, 8/15/2018 (Insured; FGIC).................................. 10,000,000 9,913,700
(Evangelical Hospitals) 6.50%, 4/15/2009.............................. 5,000,000 5,088,900
(Franciscan Sisters Health Care) 6%, 9/1/2009 (Insured; MBIA)......... 6,115,000 6,151,507
(Masonic Medical Center) 5.50%, 10/1/2019............................. 1,140,000 959,116
(Mercy Hospital and Medical Center) 7%, 1/1/2015...................... 7,500,000 7,742,400
(Southern Illinois Hospital Services) 5.85%, 3/1/2014 (Insured; MBIA)... 7,275,000 6,933,875
(Trinity Medical Center) 7%, 7/1/2012................................... 7,150,000 7,224,503
Illinois Housing Development Authority:
Homeowner Mortgage Revenue:
6.45%, 8/1/2017....................................................... 6,500,000 6,537,115
6.70%, 8/1/2025....................................................... 5,000,000 5,028,100
Multi-Family Program 6.75%, 9/1/2021.................................... 8,750,000 8,874,688
Residential Mortgage Revenue 10.179%, 2/1/2018 (a)...................... 7,915,000 7,915,000
Section 8 Elderly Housing Revenue (Morningside North Development)
6.85%, 1/1/2021....................................................... 11,220,000 11,412,872
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
ILLINOIS (CONTINUED)
Peru, Electric System Revenue 5.75%, 5/1/2025 (Insured; FGIC)............... $ 6,750,000 $ 6,239,362
INDIANA--6.7%
Allen County, COP:
8.125%, 11/1/2017....................................................... 5,000,000 5,533,650
Refunding 6.50%, 11/1/2008.............................................. 5,000,000 5,176,750
Columbus Multi-School Building Corp., First Mortgage Refunding
6.625%, 7/1/2011 (Insured; AMBAC)....................................... 3,750,000 3,973,200
Danville Community Elementary School Building Corp., First Mortgage
6.90%, 1/15/2010........................................................ 4,400,000 4,806,340
Fort Wayne Hospital Authority, HR (Lutheran Hospital) 8%, 2/15/2003......... 7,000,000 7,717,920
Hamilton County Public Building Corp., First Mortgage Refunding
6.25%, 1/20/2012........................................................ 7,200,000 7,305,336
Hammond Multi-School Building Corp., First Mortgage:
6%, 1/15/2013........................................................... 1,760,000 1,762,464
7.10%, 1/15/2015........................................................ 5,585,000 6,316,076
6%, 1/15/2018........................................................... 1,250,000 1,231,700
Indiana Health Facility Financing Authority, HR
Refunding (Welborn Memorial Baptist Hospital) 5.60%, 7/1/2018........... 6,445,000 5,640,728
Indiana Housing Finance Authority, SFMR, Refunding 6.80%, 1/1/2017.......... 9,855,000 10,080,482
Indiana Office Building Commission, Correctional Facilities Program Revenue
6.375%, 7/1/2016........................................................ 25,000,000 25,231,250
Indiana Transportation Finance Authority, Airport Facility LR
6.50%, 11/1/2007........................................................ 12,500,000 12,835,125
Indianapolis Local Public Improvement Bond Bank:
8.50%, 2/1/2018......................................................... 73,000,000 82,878,360
6.75%, 2/1/2020......................................................... 16,775,000 16,954,660
IPS School Building Corp., First Mortgage 6.10%, 1/15/2020.................. 11,000,000 10,820,480
Jefferson County Hospital Authority, Hospital Facility Revenue, Refunding
(Kings Daughter's Hospital) 8.50%, 8/15/2013............................ 3,000,000 3,252,870
Lake Central Multi-District School Building Corp., First Mortgage Refunding:
5.375%, 7/1/2012........................................................ 4,360,000 4,025,370
6.50%, 1/15/2014 (Insured; MBIA)........................................ 3,100,000 3,153,878
Lebanon High School Building Corp., First Mortgage Refunding
5.75%, 7/1/2005......................................................... 2,000,000 2,078,880
Logansport Multi - Purpose School Building Corp., First Mortgage Refunding
6%, 1/1/2009............................................................ 7,645,000 7,884,518
Monroe County Community School Corp., School Building Corp.,
First Mortgage Refunding 6.60%, 7/1/2009................................ 3,080,000 3,162,513
Noblesville High School Building Corp., First Mortgage 5.75%, 2/15/2015..... 20,060,000 19,117,381
Valparaiso Multi-Schools Building Corp., First Mortgage Refunding:
6.625%, 7/1/2002 (Insured; AMBAC)....................................... 10,700,000 11,842,118
6.625%, 7/1/2012 (Insured; AMBAC)....................................... 1,300,000 1,357,590
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
IOWA--.6%
City of Chillicothe, PCR, Refunding
(Midwest Power Systems Inc.) 5.95%, 5/1/2023............................ $ 5,000,000 $ 4,644,000
Council Bluffs, PCR, Refunding
(Midwest Power System Inc.) 5.95%, 5/1/2023............................. 13,130,000 12,195,144
Iowa Finance Authority:
Hospital Facility Revenue, Refunding (Jennie Edmundson Memorial Hospital)
7.65%, 11/1/2016...................................................... 4,850,000 4,988,079
Single Family Mortgage Refunding 6.35%, 7/1/2009 (Insured; AMBAC)....... 3,545,000 3,579,351
KANSAS--1.8%
Burlington, PCR, Refunding (Kansas Gas and Electric Co. Project)
7%, 6/1/2031 (Insured; MBIA)............................................ 10,000,000 10,739,000
Kansas Department of Transportation, Highway Revenue 6.50%, 3/1/2012........ 7,840,000 8,594,914
Wichita, HR 6.464%, 10/1/2022 (Insured; MBIA) .............................. 51,300,000 51,768,882
KENTUCKY--1.9%
Jefferson County Health Facilities, Revenue
(Jewish Hospital Health Care Services Inc.) 6.55%, 5/1/2022 (Insured; AMBAC) 10,000,000 10,228,600
Kenton County Airport Board, Airport Revenue
(Greater Cincinnati International Airport):
8.25%, 3/1/1998....................................................... 2,395,000 2,697,225
8.25%, 3/1/2015....................................................... 10,945,000 12,269,673
Commonwealth of Kentucky State Property and Building Commission, Refunding
(Project No. 54) 5.90%, 9/1/2007........................................ 5,000,000 5,048,850
Mount Sterling, LR (Kentucky League Cities Funding):
6.15%, 3/1/2013......................................................... 3,000,000 2,932,020
6.10%, 3/1/2018......................................................... 6,955,000 6,654,405
Pendleton County, Multi-County Lease Revenue
(Kentucky Associates Counties Leasing Trust Program) 6.50%, 3/1/2019.... 28,000,000 27,603,520
Trimble County, PCR (Louisville Gas and Electric Co. Project):
7.625%, 11/1/2000....................................................... 1,445,000 1,668,657
7.625%, 11/1/2020....................................................... 7,555,000 8,214,703
LOUISIANA--3.2%
Beauregard Parish, Revenue, Refunding (Boise Cascade Corp. Project)
7.75%, 6/1/2021......................................................... 3,420,000 3,613,093
Industrial Development Board of the Parish of Calcasieu, Inc.,
Environmental Revenue (Citgo Petroleum Corp. Project) 6%, 7/1/2023...... 30,000,000 26,538,900
Louisiana Public Facilities Authority, Revenue:
Hospital Refunding (Woman's Hospital Foundation Project) 7.83%, 10/1/2014 (a) 11,500,000 9,380,665
(Tulane University of Louisiana) 6.625%, 11/15/2021..................... 20,000,000 20,572,200
Parish of Saint Charles, PCR (Louisiana Power and Lighting Co. Project)
8.25%, 6/1/2014......................................................... 8,500,000 9,360,200
Parish of West Feliciana, PCR:
(Gulf States Utilities Project):
10.625%, 5/1/2014..................................................... 6,000,000 6,314,880
9%, 5/1/2015.......................................................... 13,500,000 15,461,820
(Gulf States Utilities-I) 7.70%, 12/1/2014.............................. 33,000,000 35,867,370
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
MAINE--1.6%
Jay, SWDR (International Paper Co. Project) 6%, 12/1/2017................... $ 6,250,000 $ 5,737,312
Maine Financial Authority, Solid Waste Revenue:
Disposal (Boise Cascade Corp. Project) 7.90%, 6/1/2015.................. 11,300,000 11,819,235
Recycling Facilities (Great Northern Paper, Inc. Project-Bowater Inc. Obligor)
7.75%, 10/1/2022...................................................... 8,165,000 8,776,803
Maine Health and Higher Education Facilities Authority, Revenue, Refunding
5.70%, 7/1/2013 (Insured; FSA).......................................... 5,000,000 4,723,950
Maine Housing Authority, Mortgage Purchase:
5.55%, 11/15/2014....................................................... 11,865,000 10,605,768
6.875%, 11/15/2023...................................................... 14,000,000 13,954,220
Skowhegan, SWDR (S.D. Warren Co. Project) 8.40%, 10/1/2015.................. 7,700,000 8,699,229
MARYLAND--2.1%
Community Development Administration,
Department of Housing and Community Development State of Maryland,
Single Family Program Bonds:
6.80%, 4/1/2024....................................................... 34,000,000 34,498,780
6.75%, 4/1/2026....................................................... 20,000,000 20,094,000
Maryland Health and Higher Educational Facilities Authority,
Revenue (Maryland General Hospital Issue):
6.125%, 7/1/2019 (Insured; MBIA)...................................... 2,315,000 2,304,513
6.20%, 7/1/2024 (Insured; MBIA)....................................... 4,000,000 4,009,520
Mayor and City Council of Baltimore, Revenue, Refunding (Water Projects)
5.65%, 7/1/2020 (Insured; MBIA) ........................................ 12,000,000 11,227,440
Prince Georges County, PCR, Refunding (Potomac Electric Project)
6.375%, 1/15/2023....................................................... 10,225,000 10,281,749
MASSACHUSETTS--3.0%
Massachusetts Bay Transportation Authority, General Transportation System
5.875%, 3/1/2019........................................................ 5,000,000 4,760,400
Massachusetts Health and Educational Facilities Authority, Revenue
(Brigham and Womens Hospital) 6.75%, 7/1/2024........................... 15,000,000 15,358,350
Massachusetts Housing Finance Agency, Single Family Housing:
Insured Rental Housing 6.65%, 7/1/2019 (Insured; AMBAC)................. 7,275,000 7,357,280
Revenue 7.125%, 6/1/2025................................................ 30,975,000 31,546,799
Massachusetts Industrial Finance Agency, Revenue:
Museum (Norman Rockwell Stockbridge) 8.125%, 7/1/2011................... 3,255,000 3,479,953
(Provider Lease Program) 8.75%, 7/15/2009............................... 3,000,000 3,222,780
Tunnel (Massachusetts Turnpike) 9%, 10/1/2020........................... 14,620,000 15,616,645
Massachusetts Municipal Wholesale Electric Co., Power Supply System Revenue
6.92%, 7/1/2018 (a)..................................................... 18,500,000 14,800,000
The New England Education Loan Marketing Corp., Student Loan Refunding
5.70%, 7/1/2005......................................................... 23,000,000 22,543,450
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
MICHIGAN--2.8%
Detroit, Revenue, Refunding:
Sewer Disposal 7.821%, 7/1/2023 (Insured; FGIC) (a)..................... $ 17,500,000 $ 15,050,000
Water Supply System:
9.171%, 7/1/2002 (Insured; FGIC) (a).................................. 10,800,000 12,595,500
9.171%, 7/1/2022 (Insured; FGIC) (a).................................. 4,200,000 4,268,250
The Economic Development Corp. of the County of Gratiot,
Limited Obligation Economic Development Revenue
(Danly Die Set Project) 7.625%, 4/1/2007................................ 3,200,000 3,293,312
Michigan Hospital Finance Authority, Revenue:
(Metropolitan Hospital) 8.125%, 7/1/2018................................ 5,000,000 5,816,500
(Sisters of Mercy) 9.224%, 2/15/2022 (Insured;FSA) (a).................. 18,100,000 17,851,125
Michigan Strategic Fund, Limited Obligation, Revenue:
Refunding (Detroit Edison Co.) 6.95%, 9/1/2021 (Insured; FGIC).......... 10,000,000 10,603,900
(WMX Technologies Inc. Project) 6%, 12/1/2013........................... 10,000,000 9,666,900
Pontiac Hospital Finance Authority, HR, Refunding
(North Oakland Medical Center Obligated Group) 6%, 8/1/2013............. 10,495,000 9,449,698
Western Townships Utilities Authority, Sewer Disposal System
(Limited Tax G.O.):
8.125%, 1/1/2009...................................................... 8,765,000 9,837,135
8.20%, 1/1/2018....................................................... 9,250,000 10,413,558
8.30%, 1/1/2019....................................................... 1,000,000 1,129,630
MINNESOTA--1.2%
Minneapolis, HR, Refunding (Lifespan Inc. Issue)
9.125%, 12/1/2014....................................................... 4,000,000 4,609,120
Minnesota Housing Finance Agency, Single Family Mortgage:
6.90%, 7/1/2022......................................................... 7,265,000 7,482,877
6.85%, 1/1/2024......................................................... 26,985,000 27,327,709
Rochester Health Care Facilities, Revenue 8.618%, 11/15/2015 (a)............ 9,000,000 8,707,500
MISSOURI--.2%
Saint Louis, Airport Revenue, Refunding and Improvement
(Lambert-Saint Louis International Airport Project)
6.125%, 7/1/2015 (Insured; FGIC)........................................ 8,000,000 7,999,120
MONTANA--.5%
Montana Health Facilities Authority, HR 7.287%, 2/25/2025 (a)............... 13,850,000 10,335,563
Montana Higher Education Student Assistance Corp., Student Loan Revenue
5.95%, 12/1/2012........................................................ 7,500,000 7,193,250
NEVADA--.9%
Clark County, IDR (Nevada Power Co. Project) 6.70%, 6/1/2022 (Insured; FGIC) 25,895,000 26,656,572
Washoe County, Gas Facilities Revenue (Sierra Pacific Power Co. Project)
6.70%, 11/1/2032 (Insured; MBIA)........................................ 10,000,000 10,283,800
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
NEW HAMPSHIRE--4.4%
Business Finance Authority of the State of New Hampshire,
State Guaranteed Airport Revenue (Manchester Airport Project):
6.50%, 1/1/2019....................................................... $ 9,350,000 $ 9,512,316
6.375%, 1/1/2022...................................................... 8,650,000 8,706,398
New Hampshire Higher Educational and Health Facilities Authority, Revenue, Refunding:
(Franklin Pierce College Issue) 6%, 10/1/2013........................... 4,655,000 4,358,290
(Wentworth - Douglas Hospital):
8.375%, 1/1/2006...................................................... 2,300,000 2,539,246
8.50%, 1/1/2015....................................................... 7,700,000 8,522,052
New Hampshire Housing Finance Authority:
Single Family Mortgage 6.05%, 7/1/2025.................................. 34,295,000 32,772,988
Single Family Residential Mortgage:
6.85%, 7/1/2016....................................................... 7,315,000 7,349,307
5.60%, 7/1/2017....................................................... 6,000,000 5,374,500
7.10%, 1/1/2023....................................................... 27,000,000 27,925,830
7.75%, 7/1/2023....................................................... 18,880,000 19,484,915
6.85%, 1/1/2025....................................................... 10,985,000 11,123,960
6.95%, 1/1/2026....................................................... 6,500,000 6,603,935
New Hampshire Industrial Development Authority, Revenue:
(Pollution Control Public Service Co. Project) 7.65%, 5/1/2021.......... 18,300,000 19,297,716
(Refunding-Pollution Control - Central Maine) 7.375%, 5/1/2014.......... 10,000,000 10,424,700
NEW JERSEY--4.4%
Howell Township Municipal Utilities Authority, Revenue 8.60%, 1/1/2014...... 4,000,000 4,603,280
Jersey City:
6.65%, 2/15/2013........................................................ 2,900,000 2,942,485
6.65%, 2/15/2014........................................................ 3,030,000 3,067,996
6.65%, 2/15/2015........................................................ 3,200,000 3,237,856
6.65%, 2/15/2016........................................................ 3,200,000 3,233,376
6.65%, 2/15/2017........................................................ 3,200,000 3,231,104
New Jersey Economic Development Authority, PCR
(Public Service Electric and Gas Co. Project)
6.40%, 5/1/2032 (Insured; MBIA)......................................... 27,040,000 27,091,917
New Jersey Health Care Facilities Financing Authority, Revenue:
(Atlantic City Medical Center) 8.375%, 8/1/2020 (Insured; FHA).......... 8,510,000 9,616,811
(Bayonne Hospital) 9.125%, 7/1/2012..................................... 2,350,000 2,607,631
(Elizabeth General Medical Center) 7.375%, 7/1/2015..................... 21,500,000 22,419,125
(Kimball Medical Center) 8%, 7/1/2013................................... 16,550,000 17,682,020
(Newton Memorial Hospital) 7.50%, 7/1/2019.............................. 5,000,000 5,283,500
(Warren Hospital) 9.375%, 7/1/2013...................................... 10,125,000 10,754,066
New Jersey Housing and Mortgage Finance Agency, Revenue 8.594%, 11/1/2007 (a,b) 15,000,000 15,412,500
New Jersey Sports and Exposition Authority 6.50%, 3/1/2019.................. 20,000,000 20,730,800
New Jersey Wastewater Treatment Trust, Insured Loan Revenue 9%, 9/1/2007.... 6,000,000 6,836,640
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007 10,960,000 11,037,378
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
NEW JERSEY (CONTINUED)
Pollution Control Financing Authority of Salem County, PCR, Refunding
(Public Service Electric and Gas Co. Project)
6.25%, 6/1/2031 (Insured; MBIA)......................................... $ 6,500,000 $ 6,515,275
NEW MEXICO--.9%
Albuquerque, HR, Refunding (Presbyterian Health Care Services)
6.375%, 8/1/2007 (Insured; MBIA)........................................ 4,500,000 4,753,575
Chaves County, HR (Eastern New Mexico Medical Center Project) 7.25%, 12/1/2010 6,380,000 6,365,135
New Mexico Educational Assistance Foundation, Student Loan Revenue 7.45%, 3/1/2010 12,045,000 12,145,094
New Mexico Mortgage Financing Authority,
Tax-Exempt Agency Mortgage - Backed Securities:
6.50%, 7/1/2025....................................................... 3,000,000 2,939,490
6.75%, 7/1/2025....................................................... 2,250,000 2,261,183
6.80%, 1/1/2026....................................................... 5,500,000 5,489,495
NEW YORK--7.3%
New York City:
8%, 6/1/1995............................................................ 6,925,000 7,152,556
8%, 6/1/1995............................................................ 3,075,000 3,165,836
8%, 6/1/1996............................................................ 3,685,000 3,898,030
7.50%, 2/1/2003......................................................... 29,000,000 32,265,980
7.50%, 2/1/2005......................................................... 8,000,000 8,784,400
8.40%, 11/15/2005....................................................... 5,000,000 5,813,550
8.25%, 6/1/2006......................................................... 2,750,000 3,257,650
6%, 8/1/2006............................................................ 15,000,000 15,000,900
7.75%, 8/15/2006........................................................ 20,000,000 22,440,400
7.50%, 2/1/2007......................................................... 5,000,000 5,455,900
New York City Industrial Development Agency, Special Facilities Revenue
(1994 American Airlines, Inc., Project) 6.90%, 8/1/2024................. 5,000,000 5,017,000
New York State Dormitory Authority, Revenue:
City University:
7.50%, 7/1/2010....................................................... 10,000,000 11,354,700
Refunding:
8.125%, Series C, 7/1/2008........................................ 9,725,000 10,963,382
8.125%, Series D, 7/1/2008........................................ 28,755,000 32,028,182
Judicial Facility Lease (Suffolk County Issue) 9.50%, 4/15/2014......... 8,000,000 9,372,640
New York State Energy, Research and Development Authority, Revenue,
Electric Facilities (Con Edison Co. Project):
7.75%, 1/1/2024....................................................... 8,925,000 9,577,596
7.50%, 1/1/2026....................................................... 25,000,000 26,893,000
New York State Housing Finance Agency, Revenue, Refunding
(Health Facilities-New York City) 8%, 11/1/2008......................... 22,000,000 24,973,080
New York State Medical Care Facilities Finance Agency, Revenue
Mental Health Services Facilities Improvement 7.875%, 8/15/2020......... 12,125,000 13,333,984
New York State Power Authority, Revenue and General Purpose:
Refunding 6.50%, 1/1/2019............................................... 27,000,000 27,602,910
6.25%, 1/1/2023......................................................... 10,165,000 10,199,459
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
NORTH CAROLINA--.9%
Martin County Industrial Facilities and Pollution Control Financing
Authority,
Revenue (Solid Waste-Weyerhaeuser Co.) 5.65%, 12/1/2023................. $ 5,000,000 $ 4,464,100
North Carolina Eastern Municipal Power Agency, Power System Revenue
5.75%, 12/1/2016........................................................ 4,000,000 3,636,080
North Carolina Medical Care Community, HR:
(Alamance Health Services Inc. Project):
5.50%, 8/15/2013 (Insured; FSA)....................................... 5,000,000 4,670,750
Refunding 6.375%, 8/15/2012 (Insured; FSA)............................ 3,000,000 3,101,460
(Duke University Hospital Project) 7%, 6/1/2021......................... 2,000,000 2,244,180
Pitt County, Revenue (Pitt County Memorial Hospital) 6.90%, 12/1/2021....... 12,000,000 12,678,120
Winston Salem, COP 6.90%, 6/1/2011.......................................... 5,245,000 5,866,795
NORTH DAKOTA--.3%
North Dakota Housing Finance Agency:
(Housing Mortgage Finance Program) 6.75%, 7/1/2025...................... 6,760,000 6,797,450
SFMR:
8.375%, 7/1/2021...................................................... 2,605,000 2,728,321
6.80%, 7/1/2023....................................................... 3,290,000 3,353,234
OHIO--.6%
Cuyahoga County, HR (Meridia Health System) 7%, 8/15/2023................... 7,000,000 7,287,420
Hamilton County, Hospital Facilities Revenue, Refunding
(Bethesda Hospital) 6.25%, 1/1/2012..................................... 3,115,000 3,126,401
Ohio Air Quality Development Authority, PCR (Cincinnati Gas and Electric)
10.125%, 12/1/2015...................................................... 5,500,000 6,006,220
Ohio State University, General Receipts:
5.70%, 12/1/2005........................................................ 2,350,000 2,384,381
5.70%, 12/1/2006........................................................ 1,820,000 1,829,628
Refunding 5.70%, 12/1/2005.............................................. 2,380,000 2,414,819
OKLAHOMA--1.3%
Claremore Industrial and Redevelopment Authority, Economic Development Revenue
(Yuba Project) 8.375%, 7/1/2011......................................... 7,500,000 8,035,125
Oklahoma Turnpike Authority, Turnpike Revenue 6.125%, 1/1/2020.............. 9,500,000 9,516,340
Southern Oklahoma Memorial Hospital Authority, HR 6.60%, 12/1/2012.......... 5,725,000 5,796,448
Tulsa Municipal Airport Trust, Revenue:
(AMR Corp.) 7.60%, 12/1/2030............................................ 14,390,000 14,446,697
(American Airlines) 7.375%, 12/1/2020................................... 15,000,000 14,937,750
OREGON--.2%
Portland, Sewer System Revenue 6.25%, 6/1/2015.............................. 8,750,000 8,806,788
PENNSYLVANIA--1.0%
Pennsylvania Convention Center Authority, Refunding, Revenue
6.70%, 9/1/2014......................................................... 12,000,000 11,831,160
Philadelphia Hospitals and Higher Educational Facilities Authority, HR
(Philadelphia MR Project) 8.625%, 8/1/2011.............................. 3,000,000 3,292,560
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
PENNSYLVANIA (CONTINUED)
Quakertown General Authority, Revenue (Community Mental Health/Retardation):
8.75%, 11/1/2000........................................................ $ 2,010,000 $ 2,249,210
8.875%, 11/1/2010....................................................... 6,420,000 7,161,767
Ridley Park Hospital Authority, Revenue (Taylor Hospital) 8.625%, 12/1/2020. 10,000,000 12,076,900
Schuykill County Industrial Development Authority, RRR,
Refunding (Schuykill Energy Resource Inc.) 6.50%, 1/1/2010.............. 5,000,000 4,742,650
RHODE ISLAND--1.2%
Rhode Island Depositors Economic Protection Corp., Special Obligation
6.95%, 8/1/2022......................................................... 10,500,000 11,849,565
Rhode Island Health and Educational Building Corp., Revenue:
(Johnson and Wales University) 8.375%, 4/1/2020......................... 11,000,000 12,985,060
(Landmark Medical Center) 5.60%, 10/1/2012.............................. 5,000,000 4,469,150
(Providence College) Zero Coupon, 11/1/2012 (Insured; BIGI)............. 2,500,000 777,975
Rhode Island Housing and Mortgage Finance Corp.
(Homeownership Opportunity) 6.50%, 4/1/2027............................. 9,835,000 9,781,498
Rhode Island Port Authority and Economic Development Corp.,
Airport Revenue:
5.25%, 7/1/2015 (Insured: FSA)........................................ 6,000,000 5,248,920
6.625%, 7/1/2024 (Insured: FSA)....................................... 3,400,000 3,448,314
SOUTH CAROLINA--.3%
Richland County, Solid Waste Disposal Facilities Revenue
(Union Camp Corp. Project) 7.125%, 9/1/2021............................. 6,250,000 6,622,125
Spartanburg County, Hospital Facilities Improvement Revenue, Refunding
(Mary Black Memorial Project) 8.25%, 10/1/2008.......................... 5,000,000 5,732,900
SOUTH DAKOTA--.2%
South Dakota Housing Development Authority, Homeownership Mortgage:
5.70%, 5/1/2013......................................................... 3,000,000 2,788,200
6.65%, 5/1/2014......................................................... 3,350,000 3,395,694
TENNESSEE--1.0%
Health, Educational and Housing Facilities Board of the County of Shelby
Multi-Family Housing Revenue (Windsor Apartments Project) 6.75%, 10/1/2017 5,000,000 5,091,050
McMinn County Industrial Development Board, PCR (Calhoun Newsprint Co.
Project)
7.625%, 3/1/2016........................................................ 15,000,000 15,811,650
Metropolitan Government Nashville and Davidson County, Water and Sewer Revenue
8.662%, 1/1/2022 (Insured; AMBAC) (a)................................... 7,500,000 7,321,875
Tennessee Housing Development Agency, Mortgage Financing Program
6.90%, 7/1/2025......................................................... 10,250,000 10,447,928
TEXAS--6.5%
Alliance Airport Authority Inc., Special Facilities Revenue
(American Airlines Inc. Project):
7%, 12/1/2011......................................................... 17,330,000 17,048,561
7.50%, 12/1/2029...................................................... 25,905,000 25,831,689
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
TEXAS (CONTINUED)
Amarillo Health Facilities Corp., HR
(High Plains Baptist Hospital Project) 9.718%, 1/3/2022 (Insured; FSA) (a) $ 7,250,000 $ 7,494,687
Angelina and Neches River Authority, SWDR (Champion International Corp. Project)
7.375%, 5/1/2015........................................................ 5,570,000 5,851,118
Brazos County Health Facility Development Corp.,
Franciscan Services Corp. Revenue, Refunding
(Saint Joseph's Hospital and Health Center) 8.875%, 1/1/2015............ 14,875,000 17,013,728
Brazos River Authority, PCR (Texas Utilities Electric Co. Project):
7.875%, 3/1/2021........................................................ 8,400,000 9,153,984
6.10%, 4/1/2028 (Insured; FSA).......................................... 25,000,000 24,371,500
Denison Hospital Authority, HR, Refunding (Texoma Medical Center Project)
8%, 9/1/2016............................................................ 8,790,000 9,296,304
Gulf Coast Waste Disposal Authority, Revenue:
(Champion International Corp.):
7.375%, 10/1/2025..................................................... 12,000,000 12,635,040
6.875%, 12/1/2028..................................................... 11,500,000 11,538,525
Solid Waste Disposal (Occidental Petroleum Corp. Project) 7%, 11/1/2020. 7,725,000 7,897,113
Harris County Health Facilities Development Corp., HR:
(Hermann Trust) 9%, 10/1/2017........................................... 5,000,000 5,712,300
(Saint Luke's Episcopal Hospital Project) 6.75%, 2/15/2021.............. 5,000,000 5,188,600
Harris County Hospital District, Mortgage Revenue, Refunding
7.40%, 2/15/2010 (Insured; AMBAC)....................................... 5,000,000 5,720,400
Houston, Water and Sewer System Revenue, Junior Lien
6.375%, 12/1/2022 (Insured; MBIA)....................................... 8,375,000 8,471,229
Houston Hotel Occupancy Tax, Revenue 7%, 7/1/2009 (Insured; FGIC)........... 12,225,000 13,048,720
North Central Health Facility Development Corp., Revenue, Refunding
(Children's Medical Center of Dallas Project) 5.75%, 8/15/2013 (Insured; MBIA) 8,500,000 8,094,805
Richardson Hospital Authority, HR, Refunding and Improvement
(Richardson Medical Center Project) 6.50%, 12/1/2012.................... 13,195,000 12,696,097
Rio Grande Valley Health Facilities Development Corp., HR, Refunding
(Valley Baptist Medical Center Project) 6.40%, 8/1/2016 ................ 11,200,000 11,305,504
Sabine River Authority, PCR (Collateralized-Texas Utilities Electric Project)
8.25%, 10/1/2020........................................................ 4,000,000 4,372,800
Texas General Service Commission, Lease Purchase Agreement
7.50%, 3/1/2012......................................................... 7,055,000 7,208,376
Texas Higher Education Coordinating Board,
College Student Loan Revenue (Senior Lien):
7.45%, 10/1/2006...................................................... 4,400,000 4,494,028
Zero Coupon, 10/1/2025................................................ 3,010,000 1,752,422
7.70%, 10/1/2025...................................................... 2,965,000 3,030,615
Texas Public Property Finance Corp., Revenue
(Mental Health and Retardation Project):
8.625%, 11/1/2000..................................................... 2,460,000 2,673,503
8.75%, 11/1/2010...................................................... 4,745,000 5,543,251
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
TEXAS (CONTINUED)
Texas Water Resources Finance Authority, Revenue 7.625%, 8/15/2008.......... $ 4,990,000 $ 5,410,607
Tomball Hospital Authority, HR, Refunding (Tomball Regional Hospital)
6.125%, 7/1/2023........................................................ 4,000,000 3,520,040
UTAH--2.5%
Carbon County, SWDR, Refunding (Sunnyside Cogeneration) 9.25%, 7/1/2018..... 20,000,000 21,519,800
Intermountain Power Agency, Power Supply Revenue, Refunding 5.55%, 7/1/2011 44,000,000 41,253,080
Salt Lake County, HR (Intermountain Health Care Hospital):
7.875%, 8/1/2020........................................................ 5,000,000 5,319,250
Refunding 6.25%, 2/15/2023.............................................. 18,625,000 18,284,163
Utah Housing Finance Agency, Single Family Mortgage
6.40%, 1/1/2027......................................................... 6,880,000 6,795,858
Utah Municipal Finance Cooperative, Local Government Revenue
(Pooled Capital-Salt Lake):
Zero Coupon, 3/1/2012(Insured: FSA)................................... 7,385,000 2,462,528
Zero Coupon, 3/1/2013(Insured: FSA)................................... 3,690,000 1,150,431
Zero Coupon, 3/1/2014(Insured: FSA)................................... 3,190,000 928,545
Zero Coupon, 3/1/2015(Insured: FSA)................................... 3,540,000 965,287
VERMONT--.3%
Vermont Housing Finance Agency, Single Family Housing 6.875%, 5/1/2025...... 10,500,000 10,510,395
VIRGINIA--1.4%
Giles County Industrial Development Authority,
Solid Waste Disposal Facility Revenue (Hoechst Celanese Corp. Project)
6.625%, 12/1/2022....................................................... 8,715,000 8,820,364
Henrico County Industrial Development Authority, Revenue
(Maryview Hospital Project) 7.50%, 9/1/2011............................. 5,650,000 6,449,757
Virginia Housing Development Authority, Commonwealth Mortgage:
6.20%, 7/1/2011......................................................... 12,160,000 12,218,490
6.20%, 7/1/2021......................................................... 15,000,000 14,302,650
6.70%, 1/1/2022......................................................... 6,950,000 7,030,551
6.85%, 1/1/2027......................................................... 8,000,000 8,103,360
WASHINGTON--5.3%
Lake Washington School District No. 414, Kings County, Unlimited Tax GO
6.125%, 12/1/2006....................................................... 5,035,000 5,234,487
Pilchuck Development Public Corp., Revenue, Special Facilities Airport
(Tramco Inc. Project) 6%, 8/1/2023...................................... 10,000,000 8,801,000
Public Utility District No. 1 of Chelan County,
Chelan Hydro Consolidated System Revenue:
6.95%, 6/1/2018....................................................... 8,700,000 9,627,333
6.55%, 7/1/2023....................................................... 10,000,000 9,858,500
Public Utility District No. 1 of Douglas County,
Wells Hydroelectric Revenue:
6.15%, 9/1/2013....................................................... 2,000,000 1,949,760
6.20%, 9/1/2018....................................................... 3,000,000 2,919,750
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
WASHINGTON (CONTINUED)
Puyallup School District No. 3, Pierce County:
6.65%, 12/1/2007........................................................ $ 2,000,000 $ 2,109,980
6.70%, 12/1/2008........................................................ 4,515,000 4,741,698
Snohomish County School District No. 2, Everett, Refunding
6.20%, 12/1/2012 (Insured; MBIA)........................................ 5,000,000 5,035,600
Snohomish County School District No. 6, Mukilteo:
6.50%, 12/1/2011........................................................ 7,700,000 8,050,042
5.70%, 12/1/2012 (Insured; FGIC)........................................ 5,140,000 4,936,816
Tacoma, Electric System Revenue 6.513%, 1/1/2015 (Insured; AMBAC) (a)....... 14,000,000 14,252,560
Washington:
10%, 10/1/2002 (Insured; MBIA).......................................... 3,000,000 3,328,830
5.70%, 10/1/2015........................................................ 50,200,000 47,661,386
6.40%, 6/1/2017......................................................... 43,600,000 44,974,272
Washington Health Care Facilities Authority, Revenue (Harrison Memorial
Hospital, Bremerton) 5.30%, 8/15/2014 (Insured; AMBAC).................. 5,000,000 4,420,800
Washington Public Power, Supply System Revenue, Refunding (Nuclear Project
No. 3)
5.375%, 7/1/2015........................................................ 35,710,000 31,303,743
WISCONSIN--.3%
Janesville, IDR (Simmons Manufacturing Co., Inc. Project)
7%, 10/15/2017.......................................................... 3,000,000 3,125,490
Wisconsin Health and Educational Facilities Authority, Revenue
(Lutheran Hospital - La Crosse Inc.) 5.75%, 2/15/2015 (Insured; FSA).... 3,000,000 2,792,070
Wisconsin Housing and Economic Development Authority,
Home Ownership Revenue 6.45%, 3/1/2017.................................. 5,000,000 4,988,200
Wisconsin Municipal Mutual Insurance Co., Revenue
8.50%, 12/1/2007 (LOC; Fuji Bank) (c)................................... 2,500,000 2,590,100
WYOMING--.2%
Uinta County Hospital Facility, Revenue, Refunding
(IHC Hospitals Inc.) 7.25%, 2/15/2019................................... 7,350,000 7,796,439
U.S. RELATED--.5%
Commonwealth of Puerto Rico, 5.85%, 7/1/2010................................ 5,725,000 5,709,428
Puerto Rico Highway and Transportation Authority, Highway Revenue
7.285%, 7/1/2008 (a).................................................... 7,000,000 6,282,500
Puerto Rico Public Buildings Authority,
Guaranteed Public Education and Health Facilities, Refunding
6.60%, 7/1/2004......................................................... 8,190,000 8,811,048
----------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $ 3,748,175,466).................................................. $3,811,666,608
===============
</TABLE>
<TABLE>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS--4.0% AMOUNT VALUE
---------------- --------------
<S> <C> <C>
ARIZONA--.1%
Maricopa Industrial Development Authority, Hospital Facility Revenue, VRDN
(Samaritan Health Service Hospital) 3.15% (d)........................... $ 3,500,000 $ 3,500,000
Pima County Industial Development Authority, Industrial Revenue, VRDN (Tuscon Electric)
3.25% (LOC; Bank America National Trust and Saving Association) (c,d)... 1,800,000 1,800,000
CALIFORNIA--.1%
California Pollution Control Financing Authority, IDR, VRDN
3.55% (LOC; Sumitomo Trust and Banking Co. Ltd.) (c,d).................. 4,000,000 4,000,000
COLORADO--.0%
Colorado Student Obligation Bond Authority, Student Loan Revenue, VRDN
3.25% (LOC; Student Loan Marketing Association and Sumitomo Bank Ltd.) (c,d) 200,000 200,000
DISTRICT OF COLUMBIA--.2%
District of Columbia, Refunding, VRDN 3.10% (LOC; Sanwa Bank) (c,d)......... 6,700,000 6,700,000
FLORIDA--.4%
Florida Board of Education, Capital Outlay 3.09% (a,b)...................... 12,000,000 12,000,000
Florida Local Government Finance Authority, Revenue, VRDN (Government Union
Loan)
3.20% (LOC; First Union National Bank of Florida) (c,d)................. 200,000 200,000
Pinellas County Health Facilities Authority, Revenue, Refunding, VRDN
(Pooled Hospital Loan Program) 3.25% (LOC; Chemical Bank) (c,d)......... 3,200,000 3,200,000
GEORGIA--.0%
Marietta Housing Authority, Multi-Family Revenue, VRDN (Franklin Walk
Apartments Project) 3.275% (LOC; Bankers Trust) (c,d)................... 225,000 225,000
ILLINOIS--.0%
Illinois Development Finance Authority, IDR, VRDN (Toyomenka Inc. Project)
4.15% (LOC; Tokai Bank Ltd.) (c,d)...................................... 1,200,000 1,200,000
MARYLAND--.1%
Maryland Health and Higher Education Facilities Authority, Revenue, VRDN
(Pooled Loan Program) 3.25% (d)......................................... 1,900,000 1,900,000
Prince Georges' County Housing Authority, Mortgage Revenue, VRDN (Laurel -
Oxford)
3.275% (LOC; Bankers Trust) (c,d)....................................... 1,000,000 1,000,000
MICHIGAN--.0%
Midland County Economic Development Corp., Economic Development Ltd.
Obligation Revenue, VRDN (Dow Chemical Co. Project) 3.50% (d)........... 2,000,000 2,000,000
MINNESOTA--.0%
Cloquet, PCR, VRDN (Potlatch Corp. Project) 3.15% (LOC; Credit Suisse) (c,d) 2,000,000 2,000,000
NEW MEXICO--.1%
New Mexico Mortgage Finance Authority, Mortgage Backed Securities 3.25%,
11/15/1994 ................................................................ 2,250,000 2,249,618
NEW YORK--.9%
New York City, 3.50% (a).................................................... 7,500,000 7,500,000
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
NEW YORK (CONTINUED)
New York City Health and Hospital Corp., Revenue:
3.05% (Insured; AMBAC) (a).............................................. $ 3,900,000 $ 3,900,000
3% (Insured; AMBAC) (a)................................................. 2,000,000 2,000,000
New York State Housing Finance Agency, Revenue, VRDN
(Normandie Court I Project) 2.95% (LOC; Societe Generale) (c,d)......... 3,500,000 3,500,000
New York State Job Development Authority, State Guaranteed Special Purpose,
VRDN 3.15% (LOC; Sumitomo Bank) (c,d)................................... 5,300,000 5,300,000
Port Authority of New York and New Jersey, Special Obligation Revenue, VRDN
3.30% (d)............................................................... 12,200,000 12,200,000
OHIO--.1%
Cincinnati Student Loan Funding Corp., Student Loan Revenue, VRDN:
3.10% (LOC; Fuji Bank) (c,d)............................................ 2,140,000 2,140,000
3.25% (LOC; National Westminster Bank) (c,d)............................ 1,500,000 1,500,000
Scioto County Marine Terminal Facilities, Revenue, Refunding, VRDN
(Norfolk Southern Corp. Project) 3.05% (d).............................. 1,300,000 1,300,000
PENNSYLVANIA--.1%
Allegheny County Higher Education Building Authority, Revenue,
VRDN (University of Pittsburgh) 2.70% (LOC; Fuji Bank) (c,d)............ 300,000 300,000
Pennsylvania Economic Development Financing Authority,
Economic Development Revenue, VRDN:
(6424 West Ridge Road Project) 3.40% (LOC; PNC Bank) (c,d)............ 750,000 750,000
(Creative Pultrusions Inc. Project) 3.40% (LOC; PNC Bank) (c,d)....... 450,000 450,000
Pennsylvania Energy Development Authority, Energy Development Revenue, VRDN
(Ebensburg Project) 3.25% (LOC; Swiss Bank Corp.) (c,d)................. 300,000 300,000
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue, VRDN
3.20% (LOC; Union Bank of Switzerland) (c,d)............................ 1,500,000 1,500,000
Warren County Hospital Authority, Revenue, VRDN (Warren General Hospital
Project)
3.30% (LOC; PNC Bank) (c,d)............................................. 1,000,000 1,000,000
TEXAS--.4%
Gulf Coast Waste Disposal Authority, Solid Waste Disposal Revenue, Refunding,
VRDN
(Amoco Oil Co. Project) 3.25% (d)....................................... 9,000,000 9,000,000
Texas Department of Housing and Community Affairs, Home Mortgage Revenue,
Refunding 3.08% (a)..................................................... 6,850,000 6,850,000
Trinity River Industrial Development Authority, IDR, VRDN (Toys R Us /Nytex
Project)
3.275% (LOC; Bankers Trust) (c,d)....................................... 1,000,000 1,000,000
VIRGINIA--.4%
Peninsula Ports Authority, Revenue, Refunding, VRDN (Port Facility - Shell
Oil Co. Project)
3.10% (d)............................................................... 16,300,000 16,300,000
WASHINGTON--.8%
Washington Public Power, Supply System Revenue (Nuclear Project No. 2), VRDN
3.65% (d)............................................................... 30,800,000 30,800,000
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) AUGUST 31, 1994
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- --------------
WYOMING--.2%
Uinta County, PCR, VRDN (Chevron USA Inc. Project) 3.05% (LOC; Chevron Corp.) (c,d) $ 7,200,000 $ 7,200,000
U.S. RELATED--.1%
Puerto Rico Electric Power Authority, Power Revenue, (Insured: FSA) 3% (a).. 3,700,000 3,700,000
----------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $ 160,665,000).................................................... $ 160,664,618
===============
TOTAL INVESTMENTS --100.0%
(cost $ 3,908,840,466).................................................. $3,972,331,226
===============
</TABLE>
<TABLE>
SUMMARY OF ABBREVIATIONS
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
BIGI Bond Investors Guaranty Insurance LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Insurance Association
FGIC Financial Guaranty Insurance Corporation PCR Pollution Control Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GO General Obligation SWDR Solid Waste Disposal Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
IDR Industrial Development Revenue
</TABLE>
<TABLE>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <C> <C>
AAA Aaa AAA 26.6%
AA Aa AA 30.4
A A A 17.5
BBB Baa BBB 18.7
BB Ba BB .6
F1 MIG1/P1 SP1/A1 1.9
Not Rated Not Rated Not Rated 4.3
--------
100.0%
======
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Inverse Floater Security - the interest rate is subject to change
periodically.
(b) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At August 31,
1994, these securities amounted to $44,763,894 or 1.1% of net assets.
(c) Secured by letters of credit.
(d) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
See notes to financial statements.
<TABLE>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES AUGUST 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $3,908,840,466)--see statement.................................. $3,972,331,226
Receivable for investment securities sold............................... 63,779,543
Interest receivable..................................................... 61,730,026
Receivable for Common Stock subscribed.................................. 25,500
Prepaid expenses........................................................ 154,252
----------------
4,098,020,547
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 2,022,383
Payable for investment securities purchased............................. 86,880,468
Payable for Common Stock redeemed....................................... 220,856
Accrued expenses and other liabilities.................................. 419,731 89,543,438
--------------- --------------
NET ASSETS ................................................................ $4,008,477,109
==============
REPRESENTED BY:
Paid-in capital......................................................... $3,922,365,714
Accumulated undistributed net realized gain on investments.............. 22,620,635
Accumulated net unrealized appreciation on investments_Note 3........... 63,490,760
---------------
NET ASSETS at value applicable to 323,557,950 shares outstanding
(600 million shares of $.01 par value Common Stock authorized).......... $4,008,477,109
==============
NET ASSET VALUE, offering and redemption price per share
($4,008,477,109 % 323,557,950 shares)................................... $12.39
=======
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS YEAR ENDED AUGUST 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 278,669,931
EXPENSES:
Management fee--Note 2(a)............................................. $ 25,447,556
Shareholder servicing costs-Note 2(b)................................. 3,087,411
Custodian fees........................................................ 255,872
Professional fees..................................................... 156,003
Prospectus and shareholders' reports.................................. 146,124
Registration fees..................................................... 41,980
Directors' fees and expenses-Note 2(c)................................ 35,972
Miscellaneous......................................................... 166,877
--------------
TOTAL EXPENSES.................................................. 29,337,795
---------------
INVESTMENT INCOME--NET.......................................... 249,332,136
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments--Note 3................................ $ 40,066,377
Net unrealized (depreciation) on investments............................ (349,064,340)
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (308,997,963)
----------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (59,665,827)
==============
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED AUGUST 31,
-------------------------------------
1993 1994
----------------- -----------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................... $ 264,131,758 $ 249,332,136
Net realized gain on investments..................................... 116,426,973 40,066,377
Net unrealized appreciation (depreciation) on investments for the year 161,942,467 (349,064,340)
----------------- -----------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.... 542,501,198 (59,665,827)
----------------- -----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net............................................... (264,131,758) (249,332,136)
Net realized gain on investments..................................... (94,413,898) (110,423,674)
----------------- -----------------
TOTAL DIVIDENDS.................................................... (358,545,656) (359,755,810)
----------------- -----------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 4,490,003,891 3,541,071,359
Dividends reinvested................................................. 239,231,863 239,678,805
Cost of shares redeemed.............................................. (4,461,481,108) (4,077,240,448)
----------------- -----------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS.. 267,754,646 (296,490,284)
----------------- -----------------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 451,710,188 (715,911,921)
NET ASSETS:
Beginning of year.................................................... 4,272,678,842 4,724,389,030
----------------- -----------------
End of year.......................................................... $ 4,724,389,030 $ 4,008,477,109
================ ================
SHARES SHARES
----------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 340,555,104 271,726,312
Shares issued for dividends reinvested............................... 18,295,176 18,369,588
Shares redeemed...................................................... (337,948,221) (311,906,108)
----------------- ----------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING...................... 20,902,059 (21,810,208)
================ ================
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED AUGUST 31,
---------------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $12.47 $12.24 $12.68 $13.17 $13.68
------- ------- ------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net....................... .90 .87 .84 .79 .75
Net realized and unrealized gain (loss) on investments (.23) .44 .49 .79 (.96)
------- ------- ------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS........... .67 1.31 1.33 1.58 (.21)
------- ------- ------- ------- -------
DISTRIBUTIONS:
Dividends from investment income--net........ (.90) (.87) (.84) (.79) (.75)
Dividends from net realized gain on investments -- -- -- (.28) (.33)
------- ------- ------- ------- -------
TOTAL DISTRIBUTIONS........................ (.90) (.87) (.84) (1.07) (1.08)
------- ------- ------- ------- -------
Net asset value, end of year................. $12.24 $12.68 $13.17 $13.68 $12.39
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 5.51% 11.11% 10.82% 12.62% (1.63%)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .67% .67% .68% .69% .68%
Ratio of net investment income to average net assets 7.23% 7.05% 6.49% 5.96% 5.80%
Portfolio Turnover Rate...................... 28.06% 35.53% 67.86% 45.37% 36.25%
Net Assets, end of year (000's Omitted)...... $3,594,296 $4,081,440 $4,272,679 $4,724,389 $4,008,477
</TABLE>
See notes to financial statements.
DREYFUS MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Dreyfus Service
Corporation, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares which are sold to the public without a sales charge. The
Dreyfus Service Corporation is a wholly-owned subsidiary of The Dreyfus
Corporation ("Manager"). Effective August 24, 1994, the Manager became a
direct subsidiary of Mellon Bank, N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. ("Premier") was
engaged as the Fund's distributor. Premier, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of Institutional
Administration Services, Inc., a provider of mutual fund administration
services, the parent company of which is Boston Institutional Group, Inc.
(A) PORTFOLIO VALUATION: The Fund's investments are valued each business
day by an independent pricing service ("Service") approved by the Board of
Directors. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgement 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.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net; such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, if any, it is the policy of the Fund not to distribute such gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of 6/10ths of 1% of the
average daily value of the Fund's net assets and is payable monthly. However,
pursuant to the court approved settlement of previously disclosed litigation,
commencing October 15, 1988, the Manager has agreed to make payments to the
Fund for 10 years,
DREYFUS MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
ranging from $0 to $1 million per year depending upon average daily net
assets of the Fund. The management fee for the year ended August 31, 1994 was
reduced by $350,000 pursuant to the settlement of litigation.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, brokerage, interest
on borrowings and extraordinary expenses, exceed 1 1/2% of the average value
of the Fund's net assets for any full fiscal year. No expense reimbursement
was required for the year ended August 31, 1994.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation an amount not to exceed an annual rate of .25 of
1% of the value of the Fund's average net assets for servicing shareholder
accounts. The services provided may include personal services relating to
shareholder accounts, such as answering shareholder inquiries regarding the
Fund and providing reports and other information, and services related to the
maintenance of shareholder accounts. During the year ended August 31, 1994,
the Fund was charged an aggregate of $1,066,264 pursuant to the Shareholder
Services Plan.
(C) Prior to August 24, 1994 certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $4,500 and an attendance fee of $500 per meeting.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $4,712,476,315 and $5,153,920,024, respectively, for the year
ended August 31, 1994, and consisted entirely of long-term and short-term
municipal investments.
At August 31, 1994, accumulated net unrealized appreciation on
investments was $63,490,760, consisting of $142,820,881 gross unrealized
appreciation and $79,330,121 gross unrealized depreciation.
At August 31, 1994, 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 MUNICIPAL BOND FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS MUNICIPAL BOND FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Municipal Bond Fund, Inc., including the statement of investments, as
of August 31, 1994, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the period then ended and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 1994 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 Municipal Bond Fund, Inc. at August 31, 1994, 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)
September 30, 1994
DREYFUS MUNICIPAL 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 August 31, 1994:
- all the dividends paid from investment income-net are
"exempt-interest dividends" (not generally subject to regular Federal
income tax), and
- the portion of the $.3291 per share paid by the Fund on
December 14, 1993 representing a long-term capital gain distribution
is $.3066 per share.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1994 calendar year
on Form 1099-DIV which will be mailed by January 31, 1995.
(Dreyfus Logo)
Municipal
Bond Fund, Inc.
Annual Report
August 31, 1994
(Dreyfus'D' Logo)
DREYFUS MUNICIPAL
BOND FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
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
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 054AR948
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS MUNICIPAL BOND FUND, INC. AND THE LEHMAN
BROTHERS MUNICIPAL BOND INDEX *
EXHIBIT A:
_________________________________________________________
| | LEHMAN | DREYFUS |
| | BROTHERS | MUNICIPAL |
| PERIOD | MUNICIPAL | BOND FUND |
| | BOND INDEX * | |
|------------------|------------------| -----------------|
| 8/31/84 | 10,000 | 10,000 |
| 8/31/85 | 11,663 | 11,715 |
| 8/31/86 | 14,355 | 14,083 |
| 8/31/87 | 15,020 | 14,407 |
| 8/31/88 | 16,054 | 15,309 |
| 8/31/89 | 17,817 | 17,084 |
| 8/31/90 | 18,961 | 18,025 |
| 8/31/91 | 21,196 | 20,027 |
| 8/31/92 | 23,563 | 22,193 |
| 8/31/93 | 26,438 | 24,995 |
| 8/31/94 | 26,475 | 24,587 |
|--------------------------------------------------------|
* Source: Lehman Brothers
Average Annual Total Returns
One Year Ended Five Years Ended Ten Years Ended
August 31, 1994 August 31, 1994 August 31, 1994
--------------- ---------------- ----------------
(1.63%) 7.55% 9.41%
