PRESIDENT'S LETTER
Dear Shareholder:
As the Dreyfus Municipal Bond Fund's semi-annual reporting period
ended on February 28, 1994, the net asset value of each share was $13.05,
a decrease of approximately $.03 a share from a year ago, and
approximately $.30 less than at the close of our fiscal year on August 31,
1993 (all figures are adjusted for capital gain distributions paid during
those respective periods). During the six months ended February 28, 1994,
total income dividends of approximately $.38 per share were paid,
equivalent to an annualized distribution rate per share of 5.70%, based
upon the closing net asset value per share of $13.05, adjusted for capital
gain distributions of $.3291 per share. All of the interest income paid to
you was free of Federal income tax.*
The municipal market, and indeed most of the securities markets, are
being roiled currently by a number of events, some real, some only
anticipated. When Federal Reserve Board Chairman Alan Greenspan
announced in early February that the Fed would raise its rate (which it
quickly did!), it took the markets by surprise. Many economic indicators
had shown strengthening, but still modest, economic improvement, and not
much appeared to warrant tightening of rates by the Fed. The municipal
market in concert with other fixed-income markets sold off, and it has
not yet fully recovered. The feeling is strong that the Fed has another shoe
to drop, so participants in the market continue to be wary. Meanwhile, the
economy continues to show improvement, which many automatically
equate with higher inflation and, ultimately, higher interest rates.
Investors in the fixed-income markets, whether individual or
institutional, often magnify bits of economic data thought to be negative
for the market, and such reactions, when translated into securities
selling, take their toll, also.
We continue to remain constructive on the municipal market vis-a-vis
other investment alternatives. We recognized previously the high price
levels to which the market had risen and the fact that a correction was a
possibility. Now it seems that the market has discounted adequately the
possibility of higher inflation and higher interest rates, and indeed,
perhaps has even over-discounted what may be the end result. Municipal
securities have returned to prices that should be considered within their
buying ranges for several different classes of buyers. Nonetheless, we
continue to operate gingerly with our trading activity because there is
still an air of uncertainty about the economy's direction and its effect on
the rate of inflation. There is strong buying interest in the marketplace
currently, not only from mutual funds, but also from property-casualty
insurance companies, individuals, and nontraditional buyers of municipal
securities.
Dreyfus very much appreciates your investment with us, and we want
you to know that we are working in your best interests at all times.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
President
March 17, 1994
New York, N.Y.
* Some income may be subject to the Federal Alternative Minimum Tax
(AMT) for certain shareholders. Capital gains, if any, are generally subject
to Federal, state and local taxes.
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DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS-96.0% AMOUNT VALUE
-------------- --------------
ALABAMA-.9%
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Camden Industrial Development Board, Pollution Control Facilities Revenue, Refunding
(Macmillian Bloedel Project) 7.75%, 5/1/2009............................................. $ 8,000,000 $ 8,939,040
Columbia Industrial Development Board, PCR (Alabama Power Farley Plant Project)
9.25%, 12/1/2015......................................................................... 3,800,000 4,188,056
Industrial Development Board of the Town of Courtland, SWDR
(Champion International Corp. Project) 7%, 11/1/2022..................................... 8,100,000 8,731,152
West Jefferson Industrial Development Board, PCR, Refunding
(Alabama Power Co.-Miller Plant) 6.05%, 5/1/2023 (Insured; MBIA)......................... 15,000,000 15,229,650
ALASKA-.6%
Valdez, Marine Terminal Revenue, Refunding (BP Pipeline Inc. Project)
5.85%, 8/1/2025.......................................................................... 27,000,000 26,428,680
ARIZONA-.7%
Salt River Project Agricultural Improvement and Power District,
Electric System Revenue 8.655%, 1/1/2019 (a,b)........................................... 28,350,000 28,314,562
ARKANSAS-.2%
Pulaski County, HR (Arkansas Children's Hospital Project) 6.20%, 3/1/2022.................... 8,000,000 8,139,440
CALIFORNIA-5.8%
California 8.955%, 4/1/2023 (a,b)............................................................ 20,000,000 20,250,000
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 10,897,200
Los Angeles Department of Water and Power, Electric Plant Revenue:
10.35%, 1/15/2033 (a,b).................................................................. 14,000,000 14,525,000
10.35%, 1/15/2033 (a,b).................................................................. 11,385,000 11,811,937
Orange County Local Transportation Authority, Sales Tax Revenue:
7.53%, 2/15/2009(a)...................................................................... 5,400,000 5,400,000
7.58%, 2/15/2010(a)...................................................................... 10,000,000 10,000,000
7.63%, 2/15/2011(a)...................................................................... 10,000,000 10,000,000
Pleasanton Joint Powers Financing Authority, Reassessment Revenue 6.15%, 9/2/2012............ 3,500,000 3,543,155
Sacramento Municipal Utility District, Electric Revenue Refunding
8.07%, 11/15/2015 (Insured; MBIA) (a).................................................... 16,500,000 16,190,625
San Diego, IDR (San Diego Gas and Electric Co.) 5.90%, 9/1/2018.............................. 18,255,000 18,513,673
San Diego County, COP, Refunding (Interim Justice Facilities Project) 6.50%, 8/1/2007........ 10,110,000 10,899,086
San Marcos Public Facilities Authority, Revenue, Refunding, Public Improvement
(Civic Center) 6.20%, 8/1/2022........................................................... 7,245,000 7,039,025
State Public Works Board of the State of California, LR:
(Department of Corrections _ California State Prison _ Madera County)
5.50%, 6/1/2015...................................................................... 19,000,000 18,487,570
(Various University of California Projects):
Refunding 5.50%, 6/1/2021............................................................ 17,500,000 16,577,575
6.60%, 12/1/2022..................................................................... 25,000,000 28,708,750
University of California, Revenue (Multi-Purpose Project)
6.75%, 9/1/2023 (Insured; AMBAC)......................................................... 37,000,000 41,716,760
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DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
COLORADO-2.0%
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Colorado Health Facilities Authority, Retirement Facilities Revenue
(Liberty Heights):
Zero Coupon, 7/15/2022............................................................... $ 37,500,000 $ 5,620,875
Zero Coupon, 7/15/2024............................................................... 91,150,000 11,952,499
Dawson Ridge Metropolitan District No. 1, Refunding:
Zero Coupon, 10/1/2017................................................................... 15,000,000 3,316,650
Zero Coupon, 10/1/2022................................................................... 47,535,000 7,633,646
City and County of Denver, Airport Revenue:
4.25%, 9/1/1995.......................................................................... 10,000,000 10,071,100
8.25%, 11/15/2012........................................................................ 10,000,000 11,321,200
8.50%, 11/15/2023........................................................................ 30,500,000 34,962,150
CONNECTICUT-.8%
Connecticut Health and Educational Facilities Authority, Revenue:
(University of Hartford) 8%, 7/1/2018.................................................... 4,665,000 5,632,894
(Yale University) 9.038%, 6/10/2030 (a).................................................. 5,000,000 5,168,750
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
6.70%, 11/15/2012........................................................................ 4,000,000 4,160,720
6.20%, 5/15/2014......................................................................... 3,000,000 3,110,100
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project) 5.50%, 1/1/2014............................................ 16,925,000 16,087,382
DELAWARE-.4%
Delaware Economic Development Authority, Water Development Revenue
(Wilmington Suburban Water Corp. Project) 6.80%, 12/1/2023............................... 8,000,000 8,649,600
Sussex County, Refunding 5.60%, 10/15/2020................................................... 7,000,000 6,885,270
DISTRICT OF COLUMBIA-2.4%
District of Columbia:
GO:
6%, 6/1/2009......................................................................... 10,955,000 10,981,073
5.50%, 6/1/2010...................................................................... 5,700,000 5,681,247
6%, 6/1/2010......................................................................... 10,000,000 9,972,500
Revenue 10.508%, 4/1/2022 (a)............................................................ 4,000,000 4,455,000
Metropolitan Washington Airports Authority, Airport System Revenue:
6.625%, 10/1/2012 (Insured; MBIA)........................................................ 40,400,000 43,924,900
6.625%, 10/1/2019 (Insured; MBIA)........................................................ 24,800,000 26,928,336
FLORIDA-4.7%
Charlotte County, HR
(Bon Secours Health System - Saint Joseph's Hospital Project) 8.25%, 8/15/2018........... 7,000,000 8,240,330
Dade County, Aviation Revenue 6.60%, 10/1/2022 (Insured; MBIA)............................... 10,000,000 10,815,100
Florida (Jacksonville Transportation Authority) 9.20%, 1/1/2015.............................. 2,000,000 2,923,900
Florida Board of Education, Capital Outlay 8.843%, 6/1/2023 (a,b)............................ 20,000,000 20,375,000
Florida Community Services Corp. Walton County Water and Sewer Revenue
(South Walton County Regional Utility):
6.95%, 3/1/2012...................................................................... 3,000,000 3,226,680
7%, 3/1/2018......................................................................... 3,500,000 3,834,600
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DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
FLORIDA (CONTINUED)
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Florida Division Board Finance Department, General Services Revenue
8.704%, 7/1/2013 (a,b)................................................................... $ 23,000,000 $ 23,488,750
Florida Housing Finance Agency, SFMR Zero Coupon, 1/1/2016................................... 43,205,000 4,132,126
Hospital Board of Directors of Lee County, HR, Refunding
(Lee Memorial Hospital Project) 9.524%, 4/1/2020 (Insured; MBIA) (a)..................... 17,500,000 19,381,250
Nassau County, PCR, Refunding (ITT Rayonier Project) 7.65%, 6/1/2006......................... 5,935,000 6,497,935
Orange County Health Facilities Authority,
Pooled Hospital Loan Revenue, Refunding:
7.875%, Series A, 12/1/2025 (Insured; FGIC).......................................... 26,970,000 28,992,750
7.875%, Series B, 12/1/2025 (Insured; BIGI).......................................... 16,620,000 17,866,500
Tampa, Water and Sewer System Revenue:
9.933%, 10/1/2012 (Insured; FGIC) (a).................................................... 20,000,000 22,873,600
6.60%, 10/1/2014 (Insured; FGIC)......................................................... 20,000,000 22,581,800
Volusia County, Airport System Revenue (Daytona Beach Regional Airport):
7%, 10/1/2021 (Insured; MBIA)............................................................ 810,000 933,420
7%, 10/1/2021 (Insured; MBIA)............................................................ 2,390,000 2,671,375
GEORGIA-.7%
Fulco Hospital Authority, Revenue Anticipation Certificates
(Saint Joseph's Hospital of Atlanta, Inc.) 5.50%, 10/1/2014.............................. 16,000,000 15,315,200
Georgia Housing and Finance Authority, Revenue, Homeownership Mortgage
Zero Coupon, 12/1/2031................................................................... 149,365,000 10,718,432
Henry County and Henry County Water and Sewerage Authority,
Water and Sewerage Revenue, Refunding and Improvement 5.125%, 2/1/2013................... 5,000,000 4,769,650
ILLINOIS-5.7%
Bryant, PCR, Refunding (Central Illinois Light Co. Project)
5.90%, 8/1/2023.......................................................................... 11,000,000 11,053,790
Chicago:
11.40%, 1/1/1997......................................................................... 1,500,000 1,794,300
11.50%, 1/1/1998......................................................................... 1,600,000 1,972,432
11.50%, 1/1/1999......................................................................... 1,800,000 2,292,912
Chicago O'Hare International Airport, Special Facilities Revenue:
(Lufthansa German Airlines Project)
7.125%, 5/1/2018 (LOC; Bayerische Vereinsbank) (c)................................... 4,650,000 5,077,195
(United Airlines Inc. Project):
8.20%, 5/1/2018...................................................................... 19,840,000 22,167,034
8.40%, 5/1/2018...................................................................... 20,730,000 23,215,112
8.50%, 5/1/2018...................................................................... 6,500,000 7,351,045
8.85%, 5/1/2018...................................................................... 15,885,000 18,635,011
Illinois Development Finance Authority, Revenue:
(Community Rehabilitation Providers Facilities) 8.75%, 3/1/2010.......................... 20,455,000 22,338,292
Pollution Control, Refunding (Public Service Co.) 5.70%, 8/15/2026....................... 8,650,000 8,586,423
Retirement Housing (Regency Park):
Zero Coupon, 4/15/2020............................................................... 55,000,000 9,462,200
Zero Coupon, 7/15/2023............................................................... 118,400,000 16,365,248
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DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
ILLINOIS (CONTINUED)
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Illinois Health Facilities Authority, Revenue:
(Beverly Farm Foundation) 9.125%, 12/15/2015............................................. $ 3,730,000 $ 4,110,311
Refunding:
(Brokaw-Mennonite Association-Bromenn Healthcare)
6.25%, 8/15/2018 (Insured; FGIC)................................................. 20,000,000 20,698,000
(Evangelical Hospitals) 6.50%, 4/15/2009............................................. 5,000,000 5,264,850
(Franciscan Sisters Health Care) 6%, 9/1/2009 (Insured; MBIA)........................ 6,115,000 6,356,481
(Mercy Hospital and Medical Center) 7%, 1/1/2015..................................... 7,500,000 8,033,250
(Trinity Medical Center) 7%, 7/1/2012.................................................... 7,150,000 7,405,970
Illinois Housing Development Authority:
Multi-Family Program 6.75%, 9/1/2021..................................................... 8,750,000 8,989,225
Residential Mortgage Revenue 10.981%, 2/1/2018 (a)....................................... 7,915,000 8,706,500
Section 8 Elderly Housing Revenue (Morningside North Development)
6.85%, 1/1/2021...................................................................... 10,000,000 10,318,700
Peru, Electric System Revenue 5.75%, 5/1/2025 (Insured; FGIC)................................ 9,700,000 9,643,352
INDIANA-6.5%
Allen County, COP:
8.125%, 11/1/2017........................................................................ 5,000,000 5,695,350
Refunding 6.50%, 11/1/2008............................................................... 5,000,000 5,370,850
Columbus Multi-School Building Corp., First Mortgage Refunding
6.625%, 7/1/2011 (Insured; AMBAC)........................................................ 3,750,000 4,095,037
Danville Community Elementary School Building Corp., First Mortgage
6.90%, 1/15/2010......................................................................... 4,400,000 4,805,856
Fort Wayne Hospital Authority, HR (Lutheran Hospital) 8%, 2/15/2003.......................... 7,000,000 7,856,170
Hamilton County Public Building Corp., First Mortgage Refunding
6.25%, 1/20/2012......................................................................... 7,200,000 7,549,992
Hammond Multi-School Building Corp., First Mortgage:
6%, 1/15/2013............................................................................ 1,760,000 1,800,357
7.10%, 1/15/2015......................................................................... 5,585,000 6,496,249
6%, 1/15/2018............................................................................ 1,250,000 1,271,337
Indiana Health Facility Financing Authority, HR:
(Hancock Memorial Hospital Project) 8.30%, 8/15/2020..................................... 3,585,000 4,085,896
Refunding (Welborn Memorial Baptist Hospital) 5.60%, 7/1/2018............................ 7,445,000 7,176,310
Indiana Housing Finance Authority, SFMR, Refunding 6.80%, 1/1/2017........................... 9,855,000 10,239,345
Indiana Office Building Commission, Correctional Facilities Program Revenue
6.375%, 7/1/2016......................................................................... 25,000,000 26,342,500
Indiana Transportation Finance Authority, Airport Facility LR
6.50%, 11/1/2007......................................................................... 12,500,000 13,321,125
Indianapolis Local Public Improvement Bond Bank:
8.50%, 2/1/2018.......................................................................... 73,000,000 85,428,250
6.75%, 2/1/2020.......................................................................... 16,775,000 17,921,403
Jefferson County Hospital Authority, Hospital Facility Revenue, Refunding
(Kings Daughter's Hospital) 8.50%, 8/15/2013............................................. 3,000,000 3,376,740
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<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
INDIANA (CONTINUED)
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Lake Central Multi-District School Building Corp., First Mortgage Refunding:
5.375%, 7/1/2012......................................................................... $ 4,360,000 $ 4,225,450
6.50%, 1/15/2014 (Insured; MBIA)......................................................... 3,100,000 3,332,283
Lebanon High School Building Corp., First Mortgage Refunding:
5.75%, 7/1/2005.......................................................................... 2,000,000 2,080,200
5.85%, 7/1/2008.......................................................................... 3,500,000 3,583,930
Logansport Multi_Purpose School Building Corp., First Mortgage Refunding
6%, 1/1/2009............................................................................. 7,645,000 7,857,149
Monroe County Community School Corp. School Building Corp.,
First Mortgage Refunding 6.60%, 7/1/2009................................................. 3,080,000 3,338,782
Mount Vernon High School/Junior High School Building Corp.,
First Mortgage Refunding 5.80%, 7/1/2008................................................. 3,000,000 3,035,490
Noblesville High School Building Corp., First Mortgage 5.75%, 2/15/2015...................... 20,060,000 20,065,216
Valparaiso Multi-Schools Building Corp., First Mortgage Refunding
6.625%, 7/1/2012 (Insured; AMBAC)........................................................ 12,000,000 13,011,240
IOWA-.6%
City of Chillicothe, PCR, Refunding
(Midwest Power Systems Inc.) 5.95%, 5/1/2023............................................. 5,000,000 5,029,900
Council Bluffs, PCR, Refunding
(Midwest Power System Inc.) 5.95%, 5/1/2023.............................................. 13,130,000 13,192,499
Iowa Finance Authority:
Hospital Facility Revenue, Refunding (Jennie Edmundson Memorial Hospital)
7.65%, 11/1/2016..................................................................... 4,850,000 5,251,871
Single Family Mortgage Refunding 6.35%, 7/1/2009 (Insured; AMBAC)........................ 3,770,000 3,885,777
KANSAS-1.2%
Burlington, PCR, Refunding (Kansas Gas and Electric Co. Project)
7%, 6/1/2031 (Insured; MBIA)............................................................. 10,000,000 11,174,700
Kansas Department of Transportation, Highway Revenue 6.50%, 3/1/2012......................... 7,840,000 8,841,952
Wichita, HR 10.466%, 10/1/2022 (Insured; MBIA) (a)........................................... 25,650,000 28,952,437
KENTUCKY-2.0%
Jefferson County Health Facilities, Revenue
(Jewish Hospital Health Care Services Inc.) 6.55%, 5/1/2022 (Insured; AMBAC)............. 10,000,000 10,845,700
Kenton County Airport Board, Airport Revenue
(Greater Cincinnati International Airport) 8.25%, 3/1/2015............................... 13,340,000 15,241,617
Kentucky Development Finance Authority, Revenue, Refunding
(Sisters of Charity Health-Nazareth Health Corp.) 6.75%, 11/1/2012....................... 8,160,000 9,039,322
Commonwealth of Kentucky State Property and Building Commission, Refunding
(Project No. 54) 5.90%, 9/1/2007......................................................... 5,000,000 5,222,900
Mount Sterling, LR (Kentucky League Cities Funding):
6.15%, 3/1/2013.......................................................................... 3,000,000 3,005,910
6.10%, 3/1/2018.......................................................................... 4,000,000 4,045,400
Pendleton County, Multi-County Lease Revenue
(Kentucky Associates Counties Leasing Trust Program) 6.50%, 3/1/2019..................... 28,000,000 28,348,600
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<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
KENTUCKY (CONTINUED)
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Trimble County, PCR (Louisville Gas and Electric Co. Project):
7.625%, 11/1/2000........................................................................ $ 1,445,000 $ 1,714,984
7.625%, 11/1/2020........................................................................ 7,555,000 8,688,174
LOUISIANA-3.1%
Beauregard Parish, Revenue, Refunding (Boise Cascade Corp. Project)
7.75%, 6/1/2021.......................................................................... 3,420,000 3,799,244
Industrial Development Board of the Parish of Calcasieu, Inc.,
Environmental Revenue (Citgo Petroleum Corp. Project) 6%,7/1/2023........................ 30,000,000 28,952,100
Louisiana Public Facilities Authority, Revenue
(Tulane University of Louisiana) 6.625%, 11/15/2021...................................... 20,000,000 21,832,000
Parish of Saint Charles, PCR (Louisiana Power and Lighting Co. Project)
8.25%, 6/1/2014.......................................................................... 8,500,000 9,838,580
Parish of West Feliciana, PCR:
(Gulf States Utilities Project):
10.625%, 5/1/2014.................................................................... 11,000,000 11,793,980
9%, 5/1/2015......................................................................... 13,500,000 16,333,245
(Gulf States Utilities-I) 7.70%, 12/1/2014............................................... 33,000,000 37,553,010
MAINE-1.4%
Jay, SWDR (International Paper Co. Project) 6%, 12/1/2017.................................... 6,250,000 6,179,125
Maine Financial Authority, Solid Waste Revenue:
Disposal (Boise Cascade Corp. Project) 7.90%, 6/1/2015................................... 11,300,000 12,440,961
Recycling Facilities (Great Northern Paper, Inc. Project-Bowater Inc. Obligor)
7.75%, 10/1/2022..................................................................... 8,165,000 9,248,985
Maine Health and Higher Education Facilities Authority, Revenue, Refunding
5.70%, 7/1/2013 (Insured; FSA)........................................................... 9,000,000 9,022,950
Maine Housing Authority, Mortgage Purchase 5.55%, 11/15/2014................................. 11,865,000 11,536,695
Skowhegan, SWDR (S.D. Warren Co. Project) 8.40%, 10/1/2015................................... 7,700,000 9,103,017
MARYLAND-1.2%
Maryland Community Development Administration,
Department of Housing and Community Development,
Single Family Program Bonds 6.80%, 4/1/2024.............................................. 34,000,000 35,329,740
Mayor and City Council of Baltimore, Revenue, Refunding (Water Projects)
8.525%, 7/1/2020 (Insured; MBIA) (a)..................................................... 6,000,000 6,015,000
Prince Georges County, PCR, Refunding (Potomac Electric Project)
6.375%, 1/15/2023........................................................................ 10,225,000 10,880,525
MASSACHUSETTS-3.8%
Massachusetts Bay Transportation Authority, General Transportation System
7%, 3/1/2021............................................................................. 40,000,000 47,122,800
Massachusetts Health and Educational Facilities Authority, Revenue:
(Brigham and Womens Hospital) 6.75%, 7/1/2024............................................ 15,000,000 16,396,200
(Massachusetts Eye and Ear Infirmary) 7.375%, 7/1/2011................................... 6,000,000 6,553,620
Massachusetts Housing Finance Agency, Single Family Housing Revenue:
6.30%, 6/1/2025.......................................................................... 3,430,000 3,465,706
7.125%, 6/1/2025......................................................................... 10,490,000 11,200,593
</TABLE>
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<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
MASSACHUSETTS (CONTINUED)
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Massachusetts Industrial Finance Agency, Revenue:
Museum (Norman Rockwell Stockbridge) 8.125%, 7/1/2011.................................... $ 3,345,000 $ 3,696,493
(Provider Lease Program):
8.40%, 7/15/2008..................................................................... 2,910,000 2,924,550
8.75%, 7/15/2009..................................................................... 3,000,000 3,316,470
Tunnel (Massachusetts Turnpike) 9%, 10/1/2020............................................ 14,620,000 15,643,400
Massachusetts Municipal Wholesale Electric Co., Power Supply System Revenue
8.02%, 7/1/2018 (a)...................................................................... 18,500,000 17,043,125
Massachusetts Water Resource Authority, 5.75%, 12/1/2021..................................... 6,000,000 5,909,400
The New England Education Loan Marketing Corp., Student Loan Refunding
5.70%, 7/1/2005.......................................................................... 28,300,000 28,473,762
MICHIGAN-3.1%
Detroit, Revenue, Refunding:
Sewer Disposal 8.561%, 7/1/2023 (Insured; FGIC) (a)...................................... 17,500,000 17,237,500
Water Supply System:
9.931%, 7/1/2002 (Insured; FGIC) (a)................................................. 10,800,000 13,392,000
9.931%, 7/1/2022 (Insured; FGIC) (a)................................................. 4,200,000 4,693,500
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 3,366,752
Greater Detroit Resources Recovery Authority, Revenue:
9.25%, Series D, 12/13/2008.............................................................. 4,500,000 4,881,240
9.25%, Series G, 12/13/2008.............................................................. 4,500,000 4,881,240
9.25%, Series H, 12/13/2008.............................................................. 3,550,000 3,850,756
Michigan Hospital Finance Authority, Revenue:
(Metropolitan Hospital) 8.125%, 7/1/2018................................................. 5,000,000 5,649,800
(Refunding-Detroit Medical Center Obligation Group) 6.50%, 8/15/2018..................... 5,000,000 5,257,850
Michigan Strategic Fund, Limited Obligation, Revenue:
Refunding (Detroit Edison Co.) 6.95%, 9/1/2021 (Insured; FGIC)........................... 10,000,000 11,152,700
(WMX Technologies Inc. Project) 6%, 11/1/2013............................................ 15,000,000 14,912,850
Pontiac Hospital Finance Authority, HR, Refunding
(North Oakland Medical Center Obligated Group):
5.80%, 8/1/2003...................................................................... 4,095,000 4,046,679
6%, 8/1/2013......................................................................... 10,495,000 10,085,695
6%, 8/1/2018......................................................................... 6,865,000 6,504,313
Western Townships Utilities Authority, Sewer Disposal System
(Limited Tax G.O.):
8.125%, 1/1/2009..................................................................... 8,765,000 10,041,535
8.20%, 1/1/2018...................................................................... 9,250,000 10,678,570
8.30%, 1/1/2019...................................................................... 1,000,000 1,153,080
MINNESOTA-1.0%
Minneapolis, HR, Refunding (Lifespan Inc. Issue)
9.125%, 12/1/2014........................................................................ 4,000,000 4,769,480
Minnesota Housing Finance Agency, Single Family Mortgage 6.85%, 1/1/2024..................... 26,985,000 28,517,478
Rochester Health Care Facilities, Revenue 9.334%, 11/15/2015 (a)............................. 9,000,000 9,753,750
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
MISSISSIPPI-.1%
<S> <C> <C>
Claiborne County, PCR (Middle South Energy Inc.) 12.50%, 6/15/2015........................... $ 3,000,000 $ 3,394,740
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 8,300,160
MONTANA-.5%
Montana Health Facilities Authority, HR 8.119%, 2/25/2025 (a)................................ 13,850,000 12,222,625
Montana Higher Education Student Assistance Corp., Student Loan Revenue
5.95%, 12/1/2012......................................................................... 7,500,000 7,407,450
NEVADA-.9%
Clark County, IDR (Nevada Power Co. Project) 6.70%, 6/1/2022 (Insured; FGIC)................. 25,895,000 27,716,195
Washoe County, Gas Facilities Revenue (Sierra Pacific Power Co. Project)
6.70%, 11/1/2032 (Insured; MBIA)......................................................... 10,000,000 10,813,000
NEW HAMPSHIRE-3.8%
Business Finance Authority of the State of New Hampshire,
State Guaranteed Airport Revenue (Manchester Airport Project):
6.50%, 1/1/2019...................................................................... 9,350,000 9,971,869
6.375%, 1/1/2022..................................................................... 8,650,000 9,124,279
New Hampshire Higher Educational and Health Facilities Authority, Revenue, Refunding:
(Franklin Pierce College Issue):
5.90%, 10/1/2007..................................................................... 1,790,000 1,719,635
6%, 10/1/2013........................................................................ 4,655,000 4,505,249
(Wentworth_Douglas Hospital):
8.375%, 1/1/2006..................................................................... 2,300,000 2,562,338
8.50%, 1/1/2015...................................................................... 7,700,000 8,627,542
New Hampshire Housing Finance Authority:
Single Family Mortgage 6.05%, 7/1/2025................................................... 25,115,000 24,662,428
Single Family Residential Mortgage:
5.60%, 7/1/2017...................................................................... 10,245,000 9,832,126
7.10%, 1/1/2023...................................................................... 27,000,000 28,838,700
7.75%, 7/1/2023...................................................................... 19,330,000 20,581,811
6.85%, 1/1/2025...................................................................... 10,985,000 11,283,572
New Hampshire Industrial Development Authority, Revenue:
(Pollution Control Public Service Co. Project) 7.65%, 5/1/2021........................... 18,300,000 20,153,424
(Refunding_Pollution Control-Central Maine) 7.375%, 5/1/2014............................. 10,000,000 11,099,400
NEW JERSEY-3.5%
Howell Township Municipal Utilities Authority, Revenue 8.60%, 1/1/2014....................... 4,000,000 4,748,280
Jersey City:
6.65%, 2/15/2013......................................................................... 2,900,000 3,146,384
6.65%, 2/15/2014......................................................................... 3,030,000 3,281,278
6.65%, 2/15/2015......................................................................... 3,200,000 3,461,088
6.65%, 2/15/2016......................................................................... 3,200,000 3,456,352
6.65%, 2/15/2017......................................................................... 3,200,000 3,451,296
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW JERSEY (CONTINUED)
<S> <C> <C>
New Jersey Health Care Facilities Financing Authority, Revenue:
(Atlantic City Medical Center) 8.375%, 8/1/2020 (Insured; FHA)........................... $ 8,510,000 $ 9,803,520
(Bayonne Hospital) 9.125%, 7/1/2012...................................................... 2,350,000 2,646,170
(Elizabeth General Medical Center) 7.375%, 7/1/2015...................................... 22,500,000 24,462,450
(Kimball Medical Center) 8%, 7/1/2013.................................................... 16,550,000 18,513,326
(Newton Memorial Hospital) 7.50%, 7/1/2019............................................... 5,000,000 5,495,400
(Warren Hospital) 9.375%, 7/1/2013....................................................... 10,655,000 11,533,505
New Jersey Housing and Mortgage Finance Agency, Revenue 9.417%, 11/1/2007 (a,b).............. 15,000,000 15,768,750
New Jersey Sports and Exposition Authority 6.50%, 3/1/2019................................... 20,000,000 21,710,000
New Jersey Wastewater Treatment Trust, Insured Loan Revenue 9%, 9/1/2007..................... 6,000,000 7,010,460
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007................ 10,960,000 11,858,172
NEW MEXICO-.9%
Albuquerque, HR, Refunding (Presbyterian Health Care Services)
6.375%, 8/1/2007 (Insured; MBIA)......................................................... 4,500,000 4,937,850
Chaves County, HR (Eastern New Mexico Medical Center Project) 7.25%, 12/1/2010............... 9,880,000 10,525,460
Farmington, PCR (Public Service Co. of New Mexico) 6.40%, 8/15/2023.......................... 12,000,000 12,023,640
New Mexico Educational Assistance Foundation, Student Loan Revenue
6.25%, 12/1/2009 (d)..................................................................... 11,200,000 10,807,664
NEW YORK-13.1%
Erie County Water Authority, Water Revenue, Refunding
Zero Coupon, 12/1/2017 (Insured; AMBAC).................................................. 1,165,000 212,065
Municipal Assistance Corp. for the City of New York 4.30%, 7/15/1994......................... 3,000,000 3,021,000
New York City:
8%, 6/1/1995............................................................................. 1,255,000 1,329,258
8%, 6/1/1995............................................................................. 8,745,000 9,165,897
8%, 6/1/1996............................................................................. 3,685,000 3,974,236
7.50%, 2/1/2003.......................................................................... 29,000,000 33,118,870
7.50%, 2/1/2005.......................................................................... 8,000,000 9,125,200
8.40%, 11/15/2005........................................................................ 5,000,000 6,068,350
8.25%, 6/1/2006.......................................................................... 2,750,000 3,385,470
7.75%, 8/15/2006......................................................................... 20,000,000 23,213,800
7.50%, 2/1/2007.......................................................................... 5,000,000 5,710,150
New York City Municipal Water Finance Authority,
Water and Sewer System Revenue 7.75%, 6/15/2020.......................................... 22,500,000 27,091,125
New York State Dormitory Authority, Revenue:
City University:
7.50%, 7/1/2010...................................................................... 10,000,000 11,933,000
10.875%, 7/1/2014.................................................................... 15,000,000 15,725,700
Refunding:
8.125%, Series C, 7/1/2008....................................................... 9,725,000 11,254,645
8.125%, Series D, 7/1/2008....................................................... 28,755,000 32,937,702
Court Facilities Lease (The City of New York Issue)
5.625%, 5/15/2013.................................................................... 6,000,000 5,866,440
Judicial Facility Lease (Suffolk County Issue) 9.50%, 4/15/2014.......................... 8,000,000 9,362,960
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
NEW YORK (CONTINUED)
<S> <C> <C>
New York State Dormitory Authority, Revenue (continued):
State University Educational Facilities:
5.875%, 5/15/2011.................................................................... $ 31,750,000 $ 32,430,403
6.375%, 5/15/2014.................................................................... 27,000,000 28,195,290
New York State Energy, Research and Development Authority, Revenue:
Electric Facilities (Con Edison Co. Project):
7.75%, 1/1/2024...................................................................... 8,925,000 9,869,890
7.50%, 1/1/2026...................................................................... 30,000,000 33,273,300
Pollution Control (New York State Electric and Gas Corp. Project)
5.95%, 12/1/2027..................................................................... 3,645,000 3,622,219
New York State Housing Finance Agency, Revenue, Refunding
(Health Facilities-New York City) 8%, 11/1/2008.......................................... 22,000,000 26,006,640
New York State Local Government Assistance Corp.:
6%, 4/1/2012............................................................................. 17,500,000 17,998,925
7%, 4/1/2016............................................................................. 40,000,000 46,330,000
6%, 4/1/2018............................................................................. 25,620,000 26,162,632
7%, 4/1/2021............................................................................. 6,875,000 7,962,969
New York State Medical Care Facilities Finance Agency, Revenue:
Insured Hospital Mortgage (Mount Sinai Hospital) 8.875%, 1/15/2026....................... 19,880,000 22,121,271
Mental Health Services Facilities Improvement:
7.875%, 8/15/2000.................................................................... 16,815,000 20,145,883
5.375%, 2/15/2014.................................................................... 15,000,000 14,086,800
7.875%, 8/15/2020.................................................................... 12,835,000 14,838,543
New York State Power Authority, Revenue and General Purpose, Refunding
6.50%, 1/1/2019.......................................................................... 27,000,000 29,558,790
Triborough Bridge and Tunnel Authority, General Purpose Revenue
5%, 1/1/2024............................................................................. 10,000,000 9,013,800
NORTH CAROLINA-1.6%
Martin County Industrial Facilities and Pollution Control Financing Authority,
Revenue (Solid Waste-Weyerhaeuser Co.) 5.65%, 12/1/2023.................................. 5,000,000 4,928,600
North Carolina Eastern Municipal Power Agency, Power System Revenue
5.75%, 12/1/2016......................................................................... 16,000,000 15,602,080
North Carolina Medical Care Community, HR:
(Alamance Health Services Inc. Project):
5.50%, 8/15/2013 (Insured; FSA)...................................................... 7,000,000 7,047,180
5.50%, 8/15/2024 (Insured; FSA)...................................................... 8,500,000 8,412,960
Refunding:
6.375%, 8/15/2012 (Insured; FSA)................................................. 3,000,000 3,260,400
6.375%, 8/15/2020 (Insured; FSA)................................................. 3,000,000 3,209,130
(Duke University Hospital Project) 7%, 6/1/2021.......................................... 2,000,000 2,309,820
North Carolina Municipal Power Agency No. 1,
Catawba Electric Revenue, Refunding 5.75%, 1/1/2015...................................... 6,000,000 5,977,800
Pitt County, Revenue (Pitt County Memorial Hospital) 6.90%, 12/1/2021........................ 12,000,000 13,205,520
Winston Salem, COP 6.90%, 6/1/2011........................................................... 5,245,000 5,726,596
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
NORTH DAKOTA-.2%
<S> <C> <C>
North Dakota Housing Finance Agency, SFMR:
8.375%, 7/1/2021......................................................................... $ 3,705,000 $ 3,981,097
6.80%, 7/1/2023.......................................................................... 3,290,000 3,463,153
OHIO-.8%
Cuyahoga County, HR (Meridia Health System) 7%, 8/15/2023.................................... 7,000,000 7,747,040
Hamilton County, Hospital Facilities Revenue, Refunding
(Bethesda Hospital) 6.25%, 1/1/2012...................................................... 3,115,000 3,285,359
Mount Vernon, HR, Refunding (Knox Community Hospital Project)
7.50%, 6/1/1996.......................................................................... 3,070,000 3,259,757
Ohio Air Quality Development Authority, PCR (Cincinnati Gas and Electric)
10.125%, 12/1/2015....................................................................... 5,500,000 6,186,015
Ohio State University, General Receipts:
5.70%, 12/1/2005......................................................................... 2,350,000 2,455,515
5.70%, 12/1/2006......................................................................... 1,820,000 1,888,013
Refunding 5.70%, 12/1/2005............................................................... 2,380,000 2,486,862
Ohio Water Development Authority, Pollution Control Facilities Revenue
(Ohio Edison Project) 10.625%, 7/1/2015.................................................. 6,750,000 7,502,625
OKLAHOMA-1.3%
Claremore Industrial and Redevelopment Authority, Economic Development Revenue
(Yuba Project) 8.375%, 7/1/2011.......................................................... 7,500,000 8,267,775
Oklahoma Turnpike Authority, Turnpike Revenue 6.125%, 1/1/2020............................... 10,500,000 10,906,455
Southern Oklahoma Memorial Hospital Authority, HR 6.60%, 12/1/2012........................... 5,725,000 6,026,192
Tulsa Municipal Airport Trust, Revenue:
(AMR Corp.) 7.60%, 12/1/2030............................................................. 14,390,000 15,604,804
(American Airlines) 7.375%, 12/1/2020.................................................... 15,000,000 15,942,450
PENNSYLVANIA-.8%
Pennsylvania 7.854%, 4/15/2012 (a,b)......................................................... 10,700,000 10,272,000
Philadelphia Hospitals and Higher Educational Facilities Authority, HR
(Philadelphia MR Project) 8.625%, 8/1/2011............................................... 3,000,000 3,392,910
Quakertown General Authority, Revenue (Community Mental Health/Retardation):
8.75%, 11/1/2000......................................................................... 2,010,000 2,274,194
8.875%, 11/1/2010........................................................................ 6,420,000 7,227,058
Ridley Park Hospital Authority, Revenue (Taylor Hospital) 8.625%, 12/1/2020.................. 10,000,000 12,461,200
RHODE ISLAND-.9%
Rhode Island Depositors Economic Protection Corp., Special Obligation
6.95%, 8/1/2022.......................................................................... 10,500,000 12,181,365
Rhode Island Health and Educational Building Corp., Revenue:
(Johnson and Wales University) 8.375%, 4/1/2020.......................................... 11,000,000 13,376,550
(Landmark Medical Center) 5.60%, 10/1/2012............................................... 5,000,000 4,784,900
(Providence College) Zero Coupon, 11/1/2012 (Insured; BIGI).............................. 2,500,000 828,825
Rhode Island Port Authority and Economic Development Corp.,
Airport Revenue 5.25%, 7/1/2015 (Insured; FSA)........................................... 6,000,000 5,598,480
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
SOUTH CAROLINA-.6%
<S> <C> <C>
Richland County, Solid Waste Disposal Facilities Revenue
(Union Camp Corp. Project) 7.125%, 9/1/2021.............................................. $ 6,250,000 $ 6,922,438
South Carolina Public Service Authority, Revenue, Refunding
5.50%, 7/1/2021 (Insured; MBIA).......................................................... 12,000,000 11,668,440
Spartanburg County, Hospital Facilities Improvement Revenue, Refunding
(Mary Black Memorial Project) 8.25%, 10/1/2008........................................... 5,000,000 5,906,150
SOUTH DAKOTA-.2%
Sioux Falls School District No. 49-5, Refunding 5.80%, 7/1/2007 (Insured; AMBAC)............. 3,495,000 3,601,772
South Dakota Housing Development Authority, Homeowners Mortgage
5.70%, 5/1/2013.......................................................................... 3,000,000 2,914,590
TENNESSEE-.9%
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 5,120,900
McMinn County Industrial Development Board, PCR (Calhoun Newsprint Co. Project)
7.625%, 3/1/2016......................................................................... 15,000,000 16,577,100
Metropolitan Government Nashville and Davidson County, Water and Sewer Revenue
9.392%, 1/1/2022 (Insured; AMBAC) (a).................................................... 7,500,000 7,968,750
Tennessee Housing Development Agency, Homeownership Program 6.10%, 7/1/2024.................. 6,470,000 6,416,299
TEXAS-7.2%
Alliance Airport Authority Inc., Special Facilities Revenue
(American Airlines Inc. Project):
7%, 12/1/2011........................................................................ 17,330,000 18,909,629
7.50%, 12/1/2029..................................................................... 25,905,000 27,764,202
Amarillo Health Facilities Corp., HR
(High Plains Baptist Hospital Project) 10.296%, 1/3/2022 (Insured; FSA) (a).............. 7,250,000 8,228,750
Angelina and Neches River Authority, SWDR (Champion International Corp. Project)
7.375%, 5/1/2015......................................................................... 5,570,000 6,118,367
Austin, Utilities System Revenue, Refunding 6%, 5/15/2015 (Insured; FGIC).................... 3,500,000 3,570,420
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 17,558,896
Brazos River Authority, PCR (Texas Utilities Electric Co. Project):
7.875%, 3/1/2021......................................................................... 8,400,000 9,509,976
6.10%, 4/1/2028 (Insured; FSA)........................................................... 25,000,000 25,523,500
Denison Hospital Authority, HR, Refunding (Texoma Medical Center Project)
8%, 9/1/2016............................................................................. 8,790,000 9,662,495
Gulf Coast Waste Disposal Authority, Revenue:
(Champion International Corp.):
7.375%, 10/1/2025.................................................................... 12,000,000 13,260,000
6.875%, 12/1/2028.................................................................... 11,500,000 12,357,325
Solid Waste Disposal (Occidental Petroleum Corp. Project) 7%, 11/1/2020.................. 7,725,000 8,289,234
Harris County Health Facilities Development Corp., HR:
(Hermann Trust) 9%, 10/1/2017............................................................ 5,000,000 5,905,850
(Saint Luke's Episcopal Hospital Project) 6.75%, 2/15/2021............................... 5,000,000 5,462,450
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
TEXAS (CONTINUED)
<S> <C> <C>
Harris County Hospital District, Mortgage Revenue, Refunding
7.40%, 2/15/2010 (Insured; AMBAC)........................................................ $ 5,000,000 $ 6,109,200
Houston, Water and Sewer System Revenue, Junior Lien:
6.375%, 12/1/2022 (Insured; MBIA)........................................................ 8,375,000 8,893,245
Refunding 6.375%, 12/1/2017 (Insured; AMBAC)............................................. 10,000,000 10,652,900
Houston Hotel Occupancy Tax, Revenue 7%, 7/1/2009 (Insured; FGIC)............................ 12,225,000 13,679,042
Houston Housing Finance Corp., SFMR 10.25%, 12/15/2003....................................... 1,660,000 1,705,617
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 8,705,275
Richardson Hospital Authority, HR, Refunding and Improvement
(Richardson Medical Center Project) 6.50%, 12/1/2012..................................... 13,500,000 13,686,840
Rio Grande Valley Health Facilities Development Corp., HR, Refunding
(Valley Baptist Medical Center Project) 9.833%, 8/1/2016 (a)............................. 11,200,000 12,343,408
Sabine River Authority, PCR (Collateralized-Texas Utilities Electric Project)
8.25%, 10/1/2020......................................................................... 4,000,000 4,626,040
Sam Rayburn Municipal Power Agency, Power Supply System Revenue, Refunding:
5.75%, 10/1/2008......................................................................... 5,000,000 4,635,350
6.25%, 10/1/2017......................................................................... 10,690,000 10,006,054
Texas General Service Commission, Lease Purchase Agreement
7.50%, 3/1/2012.......................................................................... 7,240,000 7,479,644
Texas Higher Education Coordinating Board,
College Student Loan Revenue (Senior Lien):
7.45%, 10/1/2006..................................................................... 4,535,000 4,858,572
Zero Coupon, 10/1/2025............................................................... 3,010,000 1,668,142
7.70%, 10/1/2025..................................................................... 3,070,000 3,300,127
Texas Public Property Finance Corp., Revenue
(Mental Health and Retardation Project):
8.625%, 11/1/2000.................................................................... 2,460,000 2,674,930
8.75%, 11/1/2010..................................................................... 4,745,000 5,205,455
Texas Water Resources Finance Authority, Revenue 7.625%, 8/15/2008........................... 5,000,000 5,526,400
Tomball Hospital Authority, HR, Refunding (Tomball Regional Hospital)
6.125%, 7/1/2023......................................................................... 7,750,000 7,418,998
UTAH-1.7%
Carbon County, SWDR, Refunding (Sunnyside Cogeneration) 9.25%, 7/1/2018...................... 20,000,000 21,942,600
Intermountain Power Agency, Power Supply Revenue, Refunding 8.23%, 7/1/2011 (a).............. 22,000,000 21,037,500
Salt Lake County, HR (Intermountain Health Care Hospital):
7.875%, 8/1/2020......................................................................... 5,000,000 5,445,650
Refunding 6.25%, 2/15/2023............................................................... 18,625,000 19,408,554
Utah Municipal Finance Cooperative, Local Government Revenue
(Pooled Capital-Salt Lake):
Zero Coupon, 3/1/2012................................................................ 7,385,000 2,520,205
Zero Coupon, 3/1/2013................................................................ 3,690,000 1,177,553
Zero Coupon, 3/1/2014................................................................ 3,190,000 951,194
Zero Coupon, 3/1/2015................................................................ 3,540,000 993,607
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
VERMONT-.3%
<S> <C> <C>
Vermont Housing Finance Agency, Single Family Housing 6.875%, 5/1/2025....................... $ 10,500,000 $ 10,841,670
Vermont Student Assistance Corp., Education Loan Finance Program, Revenue
6.70%, 12/15/2012 (Insured; FSA)......................................................... 2,500,000 2,667,100
VIRGINIA-1.3%
Giles County Industrial Development Authority,
Solid Waste Disposal Facility Revenue (Hoechst Celanese Corp. Project)
6.625%, 12/1/2022........................................................................ 7,515,000 8,149,266
Henrico County Industrial Development Authority, Revenue
(Maryview Hospital Project) 7.50%, 9/1/2011.............................................. 5,650,000 6,627,959
Peninsula Ports Authority, Coal Terminal Revenue, Refunding
(Dominion Terminal Association Project) 7.375%, 6/1/2020................................. 15,000,000 16,311,900
Virginia Housing Development Authority, Commonwealth Mortgage:
6.20%, 7/1/2021.......................................................................... 15,000,000 15,263,550
6.85%, 1/1/2027.......................................................................... 8,000,000 8,492,880
WASHINGTON-5.3%
Lake Washington School District No. 414, Kings County, Unlimited Tax GO
6.125%, 12/1/2006........................................................................ 5,035,000 5,365,296
Pilchuck Development Public Corp., Revenue, Special Facilities Airport
(Tramco Inc. Project) 6%, 8/1/2023....................................................... 10,000,000 9,611,900
Public Utility District No. 1 of Chelan County,
Chelan Hydro Consolidated System Revenue:
6.95%, 6/1/2018...................................................................... 8,700,000 9,972,288
6.55%, 7/1/2023...................................................................... 10,000,000 10,522,500
Public Utility District No. 1 of Douglas County,
Wells Hydroelectric Revenue:
6.15%, 9/1/2013...................................................................... 2,000,000 2,048,040
6.20%, 9/1/2018...................................................................... 3,000,000 3,051,810
Puyallup School District No. 3, Pierce County:
6.65%, 12/1/2007......................................................................... 2,000,000 2,176,060
6.70%, 12/1/2008......................................................................... 4,515,000 4,906,676
Snohomish County School District No. 2, Everett, Refunding
6.20%, 12/1/2012 (Insured; MBIA)......................................................... 5,000,000 5,312,950
Snohomish County School District No. 6, Mukilteo:
6.50%, 12/1/2011......................................................................... 7,700,000 8,449,595
5.70%, 12/1/2012 (Insured; FGIC)......................................................... 5,140,000 5,307,667
Tacoma, Electric System Revenue 10.259% 1/1/2015 (Insured; AMBAC) (a)........................ 7,000,000 7,927,500
Washington:
10%, 10/1/2002 (Insured; MBIA)........................................................... 3,000,000 3,455,550
8.391%, 10/1/2015 (a,b).................................................................. 25,100,000 25,570,625
6.40%, 6/1/2017.......................................................................... 68,600,000 75,774,874
Washington Health Care Facilities Authority, Revenue (Harrison Memorial
Hospital, Bremerton) 5.30%, 8/15/2014 (Insured; AMBAC)................................... 5,000,000 4,760,050
Washington Public Power Supply System, Revenue, Refunding (Nuclear Project No. 3):
5%, 7/1/2006............................................................................. 10,000,000 9,677,200
5.10%, 7/1/2007.......................................................................... 6,500,000 6,273,800
5.375%, 7/1/2015......................................................................... 24,180,000 22,872,587
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
-------------- --------------
WISCONSIN-.4%
<S> <C> <C>
Janesville, IDR (Simmons Manufacturing Co., Inc. Project)
7%, 10/15/2017........................................................................... $ 3,000,000 $ 3,275,940
Wisconsin Health and Educational Facilities Authority, Revenue:
(Lutheran Hospital_La Crosse Inc.) 5.75%, 2/15/2015 (Insured; FSA)....................... 5,765,000 5,737,040
(Meriter Hospital, Inc.) 6.30%, 12/1/2009 (Insured; FGIC)................................ 6,500,000 6,999,460
Wisconsin Municipal Mutual Insurance Co., Revenue,
8.50%, 12/1/2007 (LOC; Fuji Bank) (c).................................................... 2,500,000 2,702,825
WYOMING-.2%
Uinta County Hospital Facility, Revenue, Refunding
(IHC Hospitals Inc.) 7.25%, 2/15/2019.................................................... 7,350,000 8,074,784
U.S. RELATED-.5%
Commonwealth of Puerto Rico, 5.85%, 7/1/2010................................................. 5,725,000 5,904,307
Puerto Rico Highway and Transportation Authority, Highway Revenue
8.118%, 7/1/2008 (a)..................................................................... 7,000,000 7,052,500
Puerto Rico Public Buildings Authority,
Guaranteed Public Education and Health Facilities, Refunding
6.60%, 7/1/2004.......................................................................... 8,190,000 9,051,916
--------------
TOTAL MUNICIPAL BONDS
(cost $ 3,783,972,960)................................................................... $4,065,510,344
==============
</TABLE>
<TABLE>
<CAPTION>
SHORT-TERM MUNICIPAL INVESTMENTS-4.0%
CALIFORNIA-.3%
<S> <C> <C>
Los Angeles Department of Water and Power, Electric Plant Revenue:
2.45% (a)................................................................................ 7,750,000 7,750,000
2.45% (a)................................................................................ 7,300,000 7,300,000
FLORIDA-.8%
Broward County Housing Finance Authority, Multifamily Housing Revenue,
VRDN (Parkview Partnership Ltd. Project) 2.875% (LOC; Fuji Bank Ltd.) (c,e).............. 500,000 500,000
Florida Board of Education, Capital Outlay:
2.45% (a)................................................................................ 20,250,000 20,250,000
2.45% (a)................................................................................ 12,000,000 12,000,000
KANSAS-.5%
Wichita, HR 2.15% (a)........................................................................ 23,200,000 23,200,000
KENTUCKY-.0%
Walton, IDR, VRDN (Clarion Manufacturing Co. of America)
3.65% (LOC; Kyowa Saitama Bank Ltd.) (c,e)............................................... 400,000 400,000
MASSACHUSETTS-.1%
Massachusetts Health and Educational Facilities Authority, Revenue, VRDN
(Saint Elizabeth) 2.50% (e).............................................................. 4,000,000 4,000,000
PENNSYLVANIA-.3%
Allegheny County Higher Education Building Authority, Revenue,
VRDN (University of Pittsburgh Project) 2.30%
(LOC; Union Bank of Switzerland) (c,e)................................................... 200,000 200,000
Bucks County Industrial Development Authority, VRDN
(Oxford Falls Project) 2.90% (e)......................................................... 300,000 300,000
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994 (UNAUDITED)
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
-------------- --------------
PENNSYLVANIA (CONTINUED)
<S> <C> <C>
Pennsylvania, 2.42% (a)...................................................................... $ 10,700,000 $ 10,700,000
TEXAS-.2%
Texas Department of Housing and Community Affairs, Home Mortgage Revenue,
Refunding, 2.58% (a)..................................................................... 6,850,000 6,850,000
UTAH-.5%
Intermountain Power Agency, Power Supply Revenue, Refunding, 2.55% (a)....................... 22,000,000 22,000,000
WASHINGTON-1.3%
Pilchick Development Public Corp., Revenue, VRDN
(Kohkoku USA Project) 2.90% (LOC; Fuji Bank Ltd.) (c,e).................................. 450,000 450,000
Tacoma, Electric System Revenue, 2.45% (Insured; AMBAC) (a).................................. 7,000,000 7,000,000
Washington, 2.55% (a)........................................................................ 24,400,000 24,400,000
Washington Public Power, Supply System Revenue (Nuclear Project No. 2), VRDN 2.75% (e)....... 23,100,000 23,100,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $ 170,400,000)..................................................................... $ 170,400,000
==============
TOTAL INVESTMENTS-100.0%
(cost $ 3,954,372,960)................................................................... $4,235,910,344
==============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <C>
AMBAC American Municipal Bond Assurance Corporation IDR Industrial Development Revenue
BIGI Bond Investors Guaranty Insurance LR Lease Revenue
COP Certificate of Participation LOC Letter of Credit
FGIC Financial Guaranty Insurance Corporation MBIA Municipal Bond Insurance Association
FHA Federal Housing Administration PCR Pollution Control 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
</TABLE>
SUMMARY OF COMBINED RATINGS
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ----------------- -------------------
AAA Aaa AAA 26.3%
AA Aa AA 26.8
A A A 21.8
BBB Baa BBB 21.1
BB Ba BB .6
F1 MIG1/P1 SP1/A1 .1
Not Rated Not Rated Not Rated 3.3
------
100.0%
======
<TABLE>
<CAPTION>
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 February 28, 1994, these securities amounted
to $170,376,624 or 4.0% of net assets.
(c) Secured by letters of credit.
(d) Purchased on a when-issued basis.
(e) 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.
(f) Fitch currently provides creditworthiness information for a limited amount of investments.
See independent accountants' review report and notes to financial statements.
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1994 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $3,954,372,960)-see statement.................................... $4,235,910,344
Cash....................................................................... 7,067,611
Interest receivable........................................................ 64,317,212
Receivable for investment securities sold.................................. 14,588,450
Receivable for Common Stock subscribed..................................... 1,700
Prepaid expenses........................................................... 245,334
--------------
4,322,130,651
LIABILITIES:
Due to The Dreyfus Corporation............................................. $ 2,358,448
Payable for investment securities purchased................................ 33,294,813
Payable for Common Stock redeemed.......................................... 570,824
Accrued expenses........................................................... 324,730 36,548,815
-------------- --------------
NET ASSETS..................................................................... $4,285,581,836
==============
REPRESENTED BY:
Paid-in capital............................................................ $3,982,858,178
Accumulated undistributed net realized gain on investments................. 21,186,274
Accumulated net unrealized appreciation on investments-Note 3.............. 281,537,384
--------------
NET ASSETS at value applicable to 328,286,643 outstanding shares of
Common Stock, equivalent to $13.05 per share (600 million shares of
$.01 par value authorized)................................................. $4,285,581,836
==============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 28, 1994 (UNAUDITED)
INVESTMENT INCOME:
<S> <C> <C>
INTEREST INCOME............................................................ $ 142,708,692
EXPENSES:
Management fee-Note 2(a)............................................... $ 13,384,001
Shareholder servicing costs-Note 2(b).................................. 1,683,816
Custodian fees......................................................... 133,927
Professional fees...................................................... 77,252
Prospectus and shareholders' reports................................... 67,822
Registration fees...................................................... 27,731
Directors' fees and expenses-Note 2(c)................................. 18,687
Miscellaneous.......................................................... 52,400
--------------
TOTAL EXPENSES................................................. 15,445,636
--------------
INVESTMENT INCOME-NET.......................................... 127,263,056
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3.................................... $ 38,632,017
Net unrealized (depreciation) on investments............................... (131,017,716)
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS.............. (92,385,699)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 34,877,357
==============
</TABLE>
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
AUGUST 31, FEBRUARY 28, 1994
1993 (UNAUDITED)
-------------- -----------------
OPERATIONS:
<S> <C> <C>
Investment income-net...................................................... $ 264,131,758 $ 127,263,056
Net realized gain on investments........................................... 116,426,973 38,632,017
Net unrealized appreciation (depreciation) on investments for the period... 161,942,467 (131,017,716)
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... 542,501,198 34,877,357
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net...................................................... (264,131,758) (127,263,056)
Net realized gain on investments........................................... (94,413,898) (110,423,675)
-------------- --------------
TOTAL DIVIDENDS........................................................ (358,545,656) (237,686,731)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.............................................. 4,490,003,891 1,974,179,883
Dividends reinvested....................................................... 239,231,863 161,604,431
Cost of shares redeemed.................................................... (4,461,481,108) (2,371,782,134)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS...... 267,754,646 (235,997,820)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS............................ 451,710,188 (438,807,194)
NET ASSETS:
Beginning of period........................................................ 4,272,678,842 4,724,389,030
-------------- --------------
End of period.............................................................. $4,724,389,030 $4,285,581,836
============== ==============
</TABLE>
<TABLE>
<CAPTION>
SHARES SHARES
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
<S> <C> <C>
Shares sold................................................................ 340,555,104 145,298,608
Shares issued for dividends reinvested..................................... 18,295,176 12,056,551
Shares redeemed............................................................ (337,948,221) (174,436,674)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING.......................... 20,902,059 (17,081,515)
============== ==============
</TABLE>
<TABLE>
<CAPTION>
See independent accountants' review report and notes to financial statements.
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 period indicated. This information has been
derived from information provided in the Fund's financial statements.
YEAR ENDED AUGUST 31, SIX MONTHS ENDED
----------------------------------------------------------FEBRUARY 28, 1994
PER SHARE DATA: 1989 1990 1991 1992 1993 (UNAUDITED)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $12.03 $12.47 $12.24 $12.68 $13.17 $13.68
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income-net....................... .91 .90 .87 .84 .79 .38
Net realized and unrealized gain (loss)
on investments.......................... .44 (.23) .44 .49 .79 (.30)
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS.... 1.35 .67 1.31 1.33 1.58 .08
------ ------ ------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income-net........ (.91) (.90) (.87) (.84) (.79) (.38)
Dividends from net realized gain
on investments.......................... -- -- -- -- (.28) (.33)
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS................. (.91) (.90) (.87) (.84) (1.07) (.71)
------ ------ ------ ------ ------ ------
Net asset value, end of period.............. $12.47 $12.24 $12.68 $13.17 $13.68 $13.05
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 11.60% 5.51% 11.11% 10.82% 12.62% 1.05%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets..... .68% .67% .67% .68% .69% .68%(1)
Ratio of net investment income to
average net assets...................... 7.41% 7.23% 7.05% 6.49% 5.96% 5.63%(1)
Portfolio Turnover Rate..................... 36.38% 28.06% 35.53% 67.86% 45.37% 11.78%(2)
Net Assets, end of period (000's Omitted)... $3,485,053 $3,594,296 $4,081,440 $4,272,679 $4,724,389 $4,285,582
_____________________
(1) Annualized.
(2) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial statements.
DREYFUS MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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
("Distributor") acts as the exclusive distributor of the Fund's shares,
which are sold to the public without a sales charge. The Distributor is a
wholly-owned subsidiary of The Dreyfus Corporation ("Manager").
(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 in the
judgment of the Service are readily available and are representative of
the bid side of the market 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, when
appropriate, 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 provisions available to certain investment companies, as defined in
applicable sections of the Internal Revenue Code, and to make
distributions of income and net realized capital gain sufficient to relieve
it from all, or substantially all, Federal income 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, ranging from $0 to $1
million per year depending upon average daily net assets of the Fund. The
management fee for the six months ended February 28, 1994 was reduced
by $175,000 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, interest
on borrowings, brokerage commissions 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 six months ended
February 28, 1994.
DREYFUS MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses the Distributor 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
six months ended February 28, 1994, the Fund was charged an aggregate of
$690,384 pursuant to the Shareholder Services Plan.
(C) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each director
who is not an "affiliated person" receives an annual fee of $4,500 and an
attendance fee of $500 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the stockholders of the Manager and of Mellon. The merger
is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
NOTE 3-SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $2,142,651,711 and
$2,534,828,438, respectively, for the six months ended February 28,
1994, and consisted entirely of municipal bonds and short-term municipal
investments.
At February 28, 1994, accumulated net unrealized appreciation on
investments was $281,537,384,
consisting of $299,480,213 gross unrealized appreciation and
$17,942,829 gross unrealized depreciation.
At February 28, 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.
REVIEW REPORT OF ERNST & YOUNG, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS MUNICIPAL BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities
of Dreyfus Municipal Bond Fund, Inc., including the statement of
investments, as of February 28, 1994, and the related statements of
operations and changes in net assets and financial highlights for the six
month period ended February 28, 1994. These financial statements and
financial highlights are the responsibility of the Fund's management.
We conducted our review in accordance with standards established by
the American Institute of Certified Public Accountants. A review of
interim financial information consists principally of applying analytical
procedures to financial data, and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope than
an audit conducted in accordance with generally accepted auditing
standards, which will be performed for the full year with the objective of
expressing an opinion regarding the financial statements and financial
highlights taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material modifications
that should be made to the interim financial statements and financial
highlights referred to above for them to be in conformity with generally
accepted accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year
ended August 31, 1993 and financial highlights for the five years in the
period ended August 31, 1993 and in our report dated September 30, 1993,
we expressed an unqualified opinion on such statement of changes in net
assets and financial highlights.
Ernst & Young Signature Logo
New York, New York
April 8, 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
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 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. 054SA942
(Dreyfus Logo)
Municipal
Bond Fund, Inc.
Semi-Annual
Report
February 28, 1994
(Dreyfus Lion Logo)
