LETTER TO SHAREHOLDERS
Dear Shareholder:
Dreyfus Municipal Bond Fund, Inc. completed its semi-annual reporting
period on February 28, 1995. At the close of business that day, each share
had a net asset value of $12.18. The annualized distribution rate per share
for the six-month period was 5.92%, based on income dividends of
approximately $.360 paid during the period.* All of the interest income was
free of Federal income tax, but some shareholders may find that some of the
interest income is subject to the Federal Alternative Minimum Tax (AMT).
Capital gains are generally subject to Federal, State and local taxes.
When we reported the results of our fiscal year at the end of August,
1994, each share's net asset value was $12.39. As we report six months later,
the net asset value is below that figure, at $12.18. Calendar year 1994 was
an extremely harsh period for the fixed-income markets, and is being recorded
as one of the most severe ever for U.S. Treasury Obligations; municipal bonds
were at their all-time worst year-over-year performance during 1994, also.
However, we expect that calendar year 1995 will be better for the municipal
market.
With all that is going on in the world economy and in our own, it would
be foolhardy to forecast levels of interest rates that we may see over the
next year. We have all read of Mexico's problems and the ways in which our
country could be affected; of the dollar being under pressure; of budget
deficits and what that could mean for interest rates. There are dozens of
variables which make forecasting hazardous. Yet, in managing your Fund's
portfolio, we must trade securities in the way in which we think you, as a
shareholder, will receive the most benefit. At present, it is difficult for
us to believe that long-term interest rates will fall much further: from a
global perspective, the economies of some other countries are beginning to
recover from recessions, and their demands for funds to fuel their recoveries
will join those now being felt in the U.S., which should tend to prop rates
up. Opposing the belief that rates have fallen as much as they are likely to
in the near future is our thought that we have probably seen the high level
in rates also, so we are, in effect, now operating within a band that is more
or less fixed. As a result, we are currently moving more of the Fund's assets
into current coupon bonds and away from discount bonds, because we feel that
much of the securities' appreciation that the Fund will enjoy in 1995 is
already in place, and that from this point forward, it will be the full
coupons in which we are now investing that likely will provide the greater
return for your Fund.
We will continue to manage the Fund with your interests in mind. We
appreciate your investment with Dreyfus, and we will make every effort to
justify your confidence in us.
Very truly yours,
(Richard J. Moynihan Signature Logo)
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
March 15, 1995
New York, N.Y.
* Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the net asset
value per share at the end of the period, adjusted for capital gains
distributions during the period.
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DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS--89.5% AMOUNT VALUE
---------------- -------------
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ALABAMA--1.1%
Alabama Housing Finance Authority, SFMR
6.80%, 4/1/2025 (a)..................................................... $ 5,000,000 $ 5,097,050
Camden Industrial Development Board, Pollution Control Facilities Revenue,
Refunding
(Macmillian Bloedel Project) 7.75%, 5/1/2009............................ 8,000,000 8,403,600
Columbia Industrial Development Board, PCR (Alabama Power Farley Plant
Project)
9.25%, 12/1/2015........................................................ 3,800,000 3,988,138
Industrial Development Board of the Town of Courtland, SWDR
(Champion International Corp. Project) 7%, 11/1/2022.................... 8,100,000 8,166,744
West Jefferson Industrial Development Board, PCR, Refunding
(Alabama Power Co.- Miller Plant) 6.05%, 5/1/2023 (Insured; MBIA)....... 15,000,000 14,958,150
ALASKA--1.3%
Valdez, Marine Terminal Revenue, Refunding (BP Pipeline Inc. Project):
5.85%, 8/1/2025......................................................... 37,000,000 33,599,700
5.65%, 12/1/2028........................................................ 16,250,000 14,469,000
CALIFORNIA--7.7%
Airport Commission City and County of San Francisco,
(San Francisco International Airport) 6.50%, 5/1/2015................... 10,100,000 10,373,306
California:
5.50%, 3/1/2010......................................................... 13,330,000 12,613,379
5.90%, 4/1/2023......................................................... 40,000,000 38,410,000
California Higher Education Loan Authority, Inc.,
Student Loan Revenue, Refunding 6.50%, 6/1/2005......................... 19,250,000 20,081,985
Contra Costa Home Mortgage Finance Authority,
Home Mortgage Revenue Zero Coupon, 9/1/2017............................. 32,490,000 5,888,813
Los Angeles Department Water and Power,
Electric Plant Revenue, Crossover Refunding 5.875%, 9/1/2030............ 28,125,000 26,935,312
Orange County Local Transportation Authority, Sales Tax Revenue:
4.67%, 2/15/2009 (b).................................................... 5,400,000 3,989,628
4.72%, 2/15/2010 (b).................................................... 10,000,000 7,348,900
4.77%, 2/15/2011 (b).................................................... 10,000,000 7,342,000
Sacramento Municipal Utility District, Electric Revenue Refunding
5.485%, 11/15/2015 (Insured; MBIA)...................................... 33,000,000 31,168,170
San Diego, IDR (San Diego Gas and Electric Co.) 5.90%, 9/1/2018............. 15,000,000 14,682,750
San Diego County, COP, Refunding (Interim Justice Facilities Project) 6.50%, 8/1/2007 10,110,000 10,433,116
San Marcos Public Facilities Authority, Revenue, Refunding, Public
Improvement
(Civic Center) 6.20%, 8/1/2022.......................................... 7,245,000 6,541,945
Southern California Public Power Authority, Power Project Revenue, Refunding
5.50%, 7/1/2012......................................................... 20,000,000 18,674,200
State Public Works Board of the State of California, LR:
(Community College Projects) 6%, 10/1/2014.............................. 11,000,000 10,313,710
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
CALIFORNIA (CONTINUED)
State Public Works Board of the State of California, LR (continued):
(Department of Corrections - California State Prison-Madera County)
5.50%, 6/1/2015....................................................... $ 19,000,000 $ 17,121,470
(Various University of California Projects):
6.375%, 10/1/2014..................................................... 3,000,000 2,999,760
6.375%, 10/1/2019..................................................... 5,000,000 4,959,750
University of California, Revenue (Multi-Purpose Project)
6.75%, 9/1/2023 (Insured; AMBAC) (Prerefunded 9/1/1999) (a,c)........... 37,000,000 40,145,370
COLORADO--2.8%
Colorado Health Facilities Authority, Retirement Facilities Revenue
(Liberty Heights):
Zero Coupon, 7/15/2022................................................ 37,500,000 5,128,125
Zero Coupon, 7/15/2024................................................ 41,690,000 4,929,842
Dawson Ridge Metropolitan District No. 1, Refunding:
Zero Coupon, 10/1/2017.................................................. 15,000,000 3,282,450
Zero Coupon, 10/1/2022.................................................. 47,535,000 7,332,749
City and County of Denver, Airport Revenue:
4.25%, 9/1/1995......................................................... 10,000,000 9,947,900
8%, 11/15/2017.......................................................... 8,175,000 8,365,723
6.75%, 11/15/2022....................................................... 17,750,000 16,855,223
7.25%, 11/15/2023....................................................... 19,895,000 19,960,455
8.50%, 11/15/2023....................................................... 12,750,000 13,633,702
7.50%, 11/15/2025....................................................... 15,000,000 15,150,900
CONNECTICUT--.7%
Connecticut Health and Educational Facilities Authority, Revenue
(Yale University) 5.928%, 6/10/2030..................................... 10,000,000 9,724,100
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
6.70%, 11/15/2012....................................................... 4,000,000 4,149,720
6.30%, 5/15/2024........................................................ 3,000,000 2,968,020
Eastern Connecticut Resource Recovery Authority:
(American Fuel Co. Project) 6.45%, 11/15/2022........................... 7,325,000 7,240,177
Solid Waste Revenue (Wheelabrator Lisbon Project) 5.50%, 1/1/2014....... 4,425,000 3,747,931
DELAWARE--.2%
Delaware Economic Development Authority, Water Development Revenue
(Wilmington Suburban Water Corp. Project) 6.80%, 12/1/2023.............. 8,000,000 8,163,920
DISTRICT OF COLUMBIA--2.0%
District of Columbia, Revenue 6.562%, 4/1/2022.............................. 8,000,000 8,060,320
Metropolitan Washington Airports Authority, Airport System Revenue:
6.625%, 10/1/2012 (Insured; MBIA)....................................... 40,400,000 41,919,848
6.625%, 10/1/2019 (Insured; MBIA)....................................... 23,600,000 24,229,412
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
FLORIDA--4.1%
Charlotte County, HR
(Bon Secours Health System - Saint Joseph's Hospital Project)
8.25%, 8/15/2018 (Prerefunded 8/15/1998) (c)............................ $ 7,000,000 $ 7,883,260
Escambia County, PCR (Champion International Corp. Project)
6.90%, 8/1/2022......................................................... 9,000,000 9,148,590
Florida (Jacksonville Transportation Authority) 9.20%, 1/1/2015............. 2,000,000 2,772,820
Florida Community Services Corp. Walton County Water and Sewer Revenue
(South Walton County Regional Utility):
6.95%, 3/1/2012....................................................... 3,000,000 3,258,120
7%, 3/1/2018.......................................................... 3,500,000 3,709,160
Hospital Board of Directors of Lee County, HR, Refunding
(Lee Memorial Hospital Project):
6.206%, 4/1/2020 (Insured; MBIA)...................................... 4,000,000 4,043,120
8.327%, 4/1/2020 (Insured; MBIA) (b).................................. 15,500,000 15,829,375
Orange County Health Facilities Authority,
Pooled Hospital Loan Revenue, Refunding:
7.875%, Series A, 12/1/2025 (Insured; FGIC)........................... 26,860,000 28,471,600
7.875%, Series B, 12/1/2025 (Insured; BIGI)........................... 16,515,000 17,505,900
Palm Beach County, Solid Waste Industrial Development Revenue:
(Okeelanta Power Limited Partnership Project) 6.70%, 2/15/2015.......... 18,700,000 17,698,054
(Osceola Power Limited Partnership) 6.95%, 1/1/2022..................... 19,800,000 18,941,670
Tampa, Water and Sewer System Revenue
6.60%, 10/1/2014 (Insured; FGIC) (Prerefunded 10/1/2002) (c)............ 20,000,000 21,885,200
Volusia County, Airport System Revenue (Daytona Beach Regional Airport):
7%, 10/1/2021 (Insured; MBIA) (Prerefunded 10/1/2000) (c)............... 810,000 899,991
7%, 10/1/2021 (Insured; MBIA)........................................... 2,390,000 2,550,369
GEORGIA--.9%
Atlanta Urban Residential Finance Authority, Single Family Mortgage Revenue
Zero Coupon, 10/1/2016 (Prerefunded 4/1/2015) (c)....................... 21,000,000 5,086,410
Fulco Hospital Authority, Revenue Anticipation Certificates
(Saint Joseph's Hospital of Atlanta, Inc.) 5.50%, 10/1/2014............. 9,200,000 8,013,660
Georgia Housing and Finance Authority:
Homeownership Mortgage Zero Coupon, 12/1/2031........................... 135,825,000 10,230,339
Single Family Mortgage 7.125%, 12/1/2026................................ 10,000,000 10,473,300
IDAHO--.3%
Idaho Housing Agency, Multi-Family Housing Refunding
6.70%, 7/1/2024......................................................... 10,050,000 10,136,128
ILLINOIS--6.5%
Bryant, PCR, Refunding (Central Illinois Light Co. Project)
5.90%, 8/1/2023......................................................... 11,000,000 10,269,710
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
ILLINOIS (CONTINUED)
Chicago O'Hare International Airport, Special Facilities Revenue:
(Lufthansa German Airlines Project)
7.125%, 5/1/2018 (LOC; Bayerische Vereinsbank) (d).................... $ 4,650,000 $ 4,810,611
(United Airlines Inc. Project):
8.20%, 5/1/2018....................................................... 19,535,000 20,763,751
8.40%, 5/1/2018....................................................... 20,440,000 21,680,095
8.50%, 5/1/2018....................................................... 6,500,000 6,916,845
8.85%, 5/1/2018....................................................... 15,665,000 17,279,592
Illinois, GO 5.75%, 4/1/2013................................................ 4,000,000 3,822,320
Illinois Development Finance Authority, Revenue:
(Community Rehabilitation Providers Facilities) 8.75%, 3/1/2010......... 19,955,000 20,976,896
Pollution Control, Refunding (Public Service Co.) 5.70%, 8/15/2026...... 8,650,000 7,727,391
Illinois Educational Facilities Authority, Revenue, Refunding
(Illinois Institute of Technology):
6.60%, 12/1/2009...................................................... 3,365,000 3,256,883
6.875%, 12/1/2015..................................................... 7,250,000 7,248,912
Illinois Health Facilities Authority, Revenue:
(Beverly Farm Foundation) 9.125%, 12/15/2015............................ 3,730,000 4,004,453
Refunding:
(Evangelical Hospitals) 6.50%, 4/15/2009.............................. 5,000,000 5,116,900
(Masonic Medical Center) 5.50%, 10/1/2019............................. 1,140,000 949,894
(Mercy Hospital and Medical Center) 7%, 1/1/2015...................... 7,500,000 7,560,375
(Southern Illinois Hospital Services) 5.85%, 3/1/2014 (Insured; MBIA)... 7,275,000 7,103,819
(Trinity Medical Center) 7%, 7/1/2012................................... 7,150,000 7,207,486
Illinois Housing Development Authority:
Homeowner Mortgage Revenue:
6.45%, 8/1/2017....................................................... 6,500,000 6,567,600
6.70%, 8/1/2025....................................................... 5,000,000 5,027,350
Multi-Family Program 6.75%, 9/1/2021.................................... 8,750,000 8,967,175
Residential Mortgage Revenue 6.874%, 2/1/2018 .......................... 14,700,000 14,918,148
Section 8 Elderly Housing Revenue (Morningside North Development)
6.85%, 1/1/2021....................................................... 11,220,000 11,431,160
Peru, Electric System Revenue 5.75%, 5/1/2025 (Insured; FGIC)............... 6,750,000 6,402,983
Robbins, RRR (Robbins Resource Recovery Partners)
9.25%, 10/15/2014....................................................... 32,000,000 34,111,040
INDIANA--5.8%
Allen County, COP:
8.125%, 11/1/2017 (Prerefunded 5/1/1997) (c)............................ 5,000,000 5,440,000
Refunding 6.50%, 11/1/2008.............................................. 5,000,000 5,244,650
Burns Harbor Solid Waste Disposal Facilities, Revenue
(Bethlehem Steel Corp. Project) 8%, 4/1/2024............................ 6,000,000 6,176,100
Columbus Multi-School Building Corp., First Mortgage Refunding
6.625%, 7/1/2011 (Insured; AMBAC)....................................... 3,750,000 3,920,812
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
INDIANA (CONTINUED)
Danville Community Elementary School Building Corp., First Mortgage
6.90%, 1/15/2010........................................................ $ 4,400,000 $ 4,653,616
Fort Wayne Hospital Authority, HR (Lutheran Hospital) 8%, 2/15/2003......... 7,000,000 7,603,610
Hammond Multi-School Building Corp., First Mortgage:
6%, 1/15/2013........................................................... 1,760,000 1,775,259
7.10%, 1/15/2015 (Prerefunded 7/15/2001) (c)............................ 5,585,000 6,247,940
6%, 1/15/2018........................................................... 1,250,000 1,242,200
Indiana Health Facility Financing Authority, HR
Refunding (Welborn Memorial Baptist Hospital) 5.60%, 7/1/2018........... 6,445,000 5,613,402
Indiana Office Building Commission, Correctional Facilities Program Revenue
6.375%, 7/1/2016........................................................ 25,000,000 25,171,750
Indiana Transportation Finance Authority, Airport Facility LR
6.50%, 11/1/2007........................................................ 12,500,000 12,989,500
Indianapolis Local Public Improvement Bond Bank
8.50%, 2/1/2018 (Prerefunded 2/1/1998) (c).............................. 73,000,000 81,534,430
IPS School Building Corp., First Mortgage 6.10%, 1/15/2020.................. 11,000,000 11,007,920
Jefferson County Hospital Authority, Hospital Facility Revenue, Refunding
(Kings Daughter's Hospital) 8.50%, 8/15/2013............................ 3,000,000 3,178,680
Lake Central Multi-District School Building Corp., First Mortgage Refunding
5.375%, 7/1/2012........................................................ 4,360,000 4,019,789
Lebanon High School Building Corp., First Mortgage Refunding
5.75%, 7/1/2005......................................................... 2,000,000 2,031,580
Logansport Multi - Purpose School Building Corp., First Mortgage Refunding
6%, 1/1/2009............................................................ 7,645,000 7,830,850
Monroe County Community School Corp., School Building Corp.,
First Mortgage Refunding 6.60%, 7/1/2009................................ 3,080,000 3,235,078
Noblesville High School Building Corp., First Mortgage 5.75%, 2/15/2015..... 20,060,000 19,077,662
Valparaiso Multi-Schools Building Corp., First Mortgage Refunding
6.625%, 7/1/2012 (Insured; AMBAC)....................................... 1,300,000 1,357,317
IOWA--.6%
City of Chillicothe, PCR, Refunding
(Midwest Power Systems Inc.) 5.95%, 5/1/2023............................ 5,000,000 4,615,950
Council Bluffs, PCR, Refunding
(Midwest Power System Inc.) 5.95%, 5/1/2023 (Insured; MBIA)............. 12,130,000 11,742,810
Iowa Finance Authority,
Hospital Facility Revenue, Refunding (Jennie Edmundson Memorial Hospital)
7.65%, 11/1/2016........................................................ 4,850,000 5,003,987
KANSAS--1.6%
Kansas Department of Transportation, Highway Revenue
6.50%, 3/1/2012 (Prerefunded 3/1/2002) (c).............................. 7,840,000 8,546,384
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
KANSAS (CONTINUED)
Wichita, HR 6.464%, 10/1/2022 (Insured; MBIA)............................... $ 51,300,000 $ 52,230,069
KENTUCKY--1.6%
Kenton County Airport Board, Airport Revenue
(Greater Cincinnati International Airport):
8.25%, 3/1/1998 (Prerefunded 3/1/1998) (c)............................ 2,395,000 2,659,001
8.25%, 3/1/2015....................................................... 10,945,000 11,919,871
Mount Sterling, LR (Kentucky League Cities Funding):
6.15%, 3/1/2013......................................................... 3,000,000 2,932,980
6.10%, 3/1/2018......................................................... 6,955,000 6,811,866
Pendleton County, Multi-County Lease Revenue
(Kentucky Associates Counties Leasing Trust Program) 6.50%, 3/1/2019.... 26,000,000 25,999,740
Trimble County, PCR (Louisville Gas and Electric Co. Project):
7.625%, 11/1/2000 (Prerefunded 11/1/2000) (c)........................... 1,445,000 1,642,474
7.625%, 11/1/2020....................................................... 7,555,000 8,233,741
LOUISIANA--2.2%
Beauregard Parish, Revenue (Boise Cascade Corp. Project):
Refunding 7.75%, 6/1/2021............................................... 3,420,000 3,584,776
Solid Waste Disposal 6.30%, 8/1/2023.................................... 4,500,000 4,049,820
Louisiana Public Facilities Authority, Revenue
(Tulane University of Louisiana) 6.625%, 11/15/2021..................... 20,000,000 20,937,600
Parish of Saint Charles, PCR (Louisiana Power and Lighting Co. Project)
8.25%, 6/1/2014......................................................... 7,500,000 8,122,275
Parish of West Feliciana, PCR:
(Gulf States Utilities Co. Project):
9%, 5/1/2015.......................................................... 13,500,000 15,131,070
8%, 12/1/2024......................................................... 14,000,000 14,827,680
(Gulf States Utilities-I) 7.70%, 12/1/2014.............................. 14,000,000 14,793,660
MAINE--2.0%
Bucksport, SWDR (Champion International Corp. Project)
6.25%, 5/1/2010......................................................... 5,400,000 5,214,888
Jay, SWDR (International Paper Co. Project) 6%, 12/1/2017................... 7,105,000 6,527,435
Maine Financial Authority, Solid Waste Revenue:
Disposal (Boise Cascade Corp. Project) 7.90%, 6/1/2015.................. 11,300,000 11,668,380
Recycling Facilities (Great Northern Paper, Inc. Project-Bowater Inc.
Obligor)
7.75%, 10/1/2022...................................................... 8,165,000 8,575,128
Maine Health and Higher Education Facilities Authority, Revenue, Refunding
5.70%, 7/1/2013 (Insured; FSA).......................................... 5,000,000 4,743,600
Maine Housing Authority, Mortgage Purchase:
5.55%, 11/15/2014....................................................... 11,865,000 10,657,380
6.875%, 11/15/2023...................................................... 14,000,000 14,216,580
6.40%, 11/15/2024....................................................... 6,000,000 5,783,400
Skowhegan, SWDR (S.D. Warren Co. Project) 8.40%, 10/1/2015.................. 7,700,000 8,548,771
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
MARYLAND--1.6%
Community Development Administration,
Department of Housing and Community Development State of Maryland,
Single Family Program Bonds:
6.80%, 4/1/2024....................................................... $ 33,980,000 $ 34,274,607
6.75%, 4/1/2026....................................................... 20,000,000 20,122,200
Maryland Health and Higher Educational Facilities Authority,
Revenue (Maryland General Hospital Issue):
6.125%, 7/1/2019 (Insured; MBIA)...................................... 2,315,000 2,332,640
6.20%, 7/1/2024 (Insured; MBIA)....................................... 4,000,000 4,048,320
MASSACHUSETTS--2.0%
Massachusetts Housing Finance Agency, Single Family Housing:
Insured Rental Housing 6.65%, 7/1/2019 (Insured; AMBAC)................. 7,275,000 7,478,336
Revenue 7.125%, 6/1/2025................................................ 26,975,000 27,846,293
Massachusetts Industrial Finance Agency, Revenue:
Museum (Norman Rockwell Stockbridge) 8.125%, 7/1/2011................... 3,255,000 3,397,374
(Provider Lease Program) 8.75%, 7/15/2009............................... 3,000,000 3,128,340
Massachusetts Municipal Wholesale Electric Co., Power Supply System Revenue
5.31%, 7/1/2018 ........................................................ 20,600,000 18,729,726
The New England Education Loan Marketing Corp., Student Loan Refunding
5.70%, 7/1/2005......................................................... 16,500,000 15,967,050
MICHIGAN--3.6%
Detroit, Revenue, Refunding:
Sewer Disposal 5.70% 7/1/2023 (Insured; FGIC)........................... 35,000,000 32,851,700
Water Supply System 6.375%, 7/1/2022 (Insured; FGIC).................... 8,400,000 8,519,700
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 3,309,312
Michigan Hospital Finance Authority, Revenue:
Hospital Refunding (Genesys Health System Obligated Group):
8.125%, 10/1/2021..................................................... 15,000,000 15,396,750
7.50%, 10/1/2027...................................................... 13,000,000 12,704,770
(Metropolitan Hospital) 8.125%, 7/1/2018 (Prerefunded 7/1/1999) (c)..... 5,000,000 5,729,950
(Sisters of Mercy) 6.30%, 2/15/2022 (Insured; FSA)...................... 36,200,000 36,198,190
Western Townships Utilities Authority, Sewer Disposal System
(Limited Tax GO):
8.125%, 1/1/2009...................................................... 8,765,000 9,741,684
8.20%, 1/1/2018....................................................... 9,250,000 10,304,500
8.30%, 1/1/2019....................................................... 1,000,000 1,117,430
MINNESOTA--.8%
Minneapolis, HR, Refunding (Lifespan Inc. Issue)
9.125%, 12/1/2014 (Prerefunded 12/1/1997) (c)........................... 4,000,000 4,518,320
Minnesota Housing Finance Agency, Single Family Mortgage 6.90%, 7/1/2022.... 7,265,000 7,487,745
Rochester Health Care Facilities, Revenue 6.026%, 11/15/2015................ 18,000,000 17,926,560
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
MISSOURI--.5%
Missouri Higher Education Loan Authority, Student Loan Revenue
6.75%, 2/15/2009........................................................ $ 11,500,000 $ 11,904,800
Saint Louis, Airport Revenue, Refunding and Improvement
(Lambert-Saint Louis International Airport Project)
6.125%, 7/1/2015 (Insured; FGIC)........................................ 8,000,000 8,024,560
MONTANA--.8%
Montana Health Facility Authority, HR
(Deaconess-Billings Clinic Health System Project) 5.342%, 2/15/2025..... 27,700,000 24,144,151
Montana Higher Education Student Assistance Corp., Student Loan Revenue
5.95%, 12/1/2012........................................................ 7,500,000 7,322,625
NEVADA--1.2%
Clark County, IDR (Nevada Power Co. Project) 6.70%, 6/1/2022 (Insured; FGIC) (e) 25,895,000 26,591,575
Nevada Housing Division, (Single Family Program)
6.80%, 4/1/2027......................................................... 9,960,000 10,051,732
Washoe County, Gas Facilities Revenue (Sierra Pacific Power Co. Project)
6.70%, 11/1/2032 (Insured; MBIA)........................................ 10,000,000 10,284,300
NEW HAMPSHIRE--5.0%
Business Finance Authority of the State of New Hampshire,
State Guaranteed Airport Revenue (Manchester Airport Project):
6.50%, 1/1/2019....................................................... 12,600,000 12,733,434
6.375%, 1/1/2022...................................................... 8,650,000 8,657,699
New Hampshire Higher Educational and Health Facilities Authority, Revenue,
Refunding:
(Franklin Pierce College Issue) 6%, 10/1/2013........................... 4,655,000 4,306,480
(Wentworth - Douglas Hospital):
8.375%, 1/1/2006 (Prerefunded 1/1/1997) (c)........................... 2,300,000 2,491,567
8.50%, 1/1/2015 (Prerefunded 1/1/1997) (c)............................ 7,700,000 8,358,119
New Hampshire Housing Finance Authority:
Multi-Family Housing 7.55%, 7/1/2013.................................... 4,205,000 4,621,001
Single Family Mortgage:
7.25%, 1/1/2016....................................................... 4,000,000 4,214,200
6.05%, 7/1/2025....................................................... 33,495,000 31,048,190
Single Family Residential Mortgage:
6.85%, 7/1/2016....................................................... 7,315,000 7,443,890
5.60%, 7/1/2017....................................................... 6,000,000 5,328,960
7.10%, 1/1/2023....................................................... 27,000,000 27,782,190
7.75%, 7/1/2023....................................................... 18,880,000 19,968,054
6.85%, 1/1/2025....................................................... 10,985,000 11,151,423
6.95%, 1/1/2026....................................................... 10,500,000 10,671,465
New Hampshire Industrial Development Authority, Revenue:
(Pollution Control Public Service Co. Project) 7.65%, 5/1/2021.......... 18,300,000 18,937,389
(Refunding - Pollution Control - Central Maine) 7.375%, 5/1/2014........ 10,000,000 10,458,700
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
--------------- -------------
NEW JERSEY--4.4%
Howell Township Municipal Utilities Authority, Revenue
8.60%, 1/1/2014 (Prerefunded 7/1/1998) (c).............................. $ 4,000,000 $ 4,524,000
New Jersey Economic Development Authority, PCR
(Public Service Electric and Gas Co. Project)
6.40%, 5/1/2032 (Insured; MBIA)......................................... 27,040,000 27,316,349
New Jersey Health Care Facilities Financing Authority, Revenue:
(Atlantic City Medical Center) 8.375%, 8/1/2020 (Insured; FHA)
(Prerefunded 2/1/1998) (c)............................................ 8,510,000 9,463,801
(Elizabeth General Medical Center) 7.375%, 7/1/2015..................... 17,780,000 17,492,675
(Kimball Medical Center) 8%, 7/1/2013................................... 16,550,000 17,534,228
(Newton Memorial Hospital) 7.50%, 7/1/2019.............................. 5,000,000 5,172,000
(Warren Hospital) 9.375%, 7/1/2013...................................... 10,125,000 10,461,049
New Jersey Housing and Mortgage Finance Agency, Revenue 6.429%, 11/1/2007 (f) 30,000,000 30,776,400
New Jersey Sports and Exposition Authority 6.50%, 3/1/2019.................. 20,000,000 20,645,800
New Jersey Wastewater Treatment Trust, Insured Loan Revenue
9%, 9/1/2007 (Prerefunded 9/1/1997) (c)................................. 6,000,000 6,710,520
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007 10,960,000 10,505,489
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 6,520,020
NEW MEXICO--.8%
Albuquerque, HR, Refunding (Presbyterian Health Care Services)
6.375%, 8/1/2007 (Insured; MBIA)........................................ 4,500,000 4,728,915
New Mexico Educational Assistance Foundation, Student Loan Revenue
7.45%, 3/1/2010 (g)..................................................... 12,045,000 12,874,419
New Mexico Mortgage Financing Authority:
6.85%, 7/1/2015......................................................... 5,100,000 5,400,390
6.75%, 7/1/2025......................................................... 2,250,000 2,351,475
6.80%, 1/1/2026 (g)..................................................... 5,500,000 5,740,515
NEW YORK--5.1%
New York City:
8%, 6/1/1995............................................................ 6,925,000 7,018,903
8%, 6/1/1995............................................................ 3,075,000 3,110,362
8%, 6/1/1996............................................................ 3,685,000 3,818,213
7.50%, 2/1/2003......................................................... 29,000,000 31,251,560
8.25%, 6/1/2006......................................................... 2,750,000 3,167,725
6%, 8/1/2006............................................................ 15,000,000 14,389,050
7.50%, 2/1/2007......................................................... 5,000,000 5,291,500
New York City Industrial Development Agency, Special Facilities Revenue
(1994 American Airlines, Inc., Project) 6.90%, 8/1/2024................. 12,000,000 11,984,040
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
NEW YORK (CONTINUED)
New York State Dormitory Authority, Revenue:
City University:
7.50%, 7/1/2010....................................................... $ 10,000,000 $ 11,231,300
Refunding 8.125%, 7/1/2008............................................ 9,725,000 10,781,719
Judicial Facility Lease (Suffolk County Issue) 9.50%, 4/15/2014......... 8,000,000 9,336,960
New York State Energy, Research and Development Authority, Revenue,
Electric Facilities (Con Edison Co. Project):
7.75%, 1/1/2024....................................................... 8,925,000 9,413,287
7.50%, 1/1/2026....................................................... 23,970,000 25,094,433
Facilities (Con Edison Co. Project) 6.375%, 12/1/2027................... 10,000,000 9,998,700
New York State Housing Finance Agency, Revenue, Refunding
(Health Facilities - New York City) 8%, 11/1/2008....................... 3,000,000 3,321,390
New York State Medical Care Facilities Finance Agency, Revenue
Mental Health Services Facilities Improvement 7.875%, 8/15/2020......... 12,125,000 13,209,702
New York State Power Authority, Revenue and General Purpose, Refunding
6.50%, 1/1/2019......................................................... 20,500,000 21,037,715
NORTH CAROLINA--1.1%
Martin County Industrial Facilities and Pollution Control Financing
Authority,
Revenue (Solid Waste-Weyerhaeuser Co.) 5.65%, 12/1/2023................. 15,440,000 13,831,770
North Carolina Medical Care Community, HR:
(Alamance Health Services Inc. Project):
5.50%, 8/15/2013 (Insured; FSA)....................................... 5,000,000 4,787,550
Refunding 6.375%, 8/15/2012 (Insured; FSA)............................ 3,000,000 3,115,320
(Duke University Hospital Project) 7%, 6/1/2021 (Prerefunded 6/1/2001) (c) 2,000,000 2,222,420
Pitt County, Revenue (Pitt County Memorial Hospital) 6.90%, 12/1/2021....... 12,000,000 12,617,400
Winston Salem, COP 6.90%, 6/1/2011 (Prerefunded 6/1/2001) (c)............... 5,245,000 5,800,550
NORTH DAKOTA--.3%
North Dakota Housing Finance Agency:
(Housing Mortgage Finance Program) 6.75%, 7/1/2025...................... 6,760,000 6,850,043
SFMR:
8.375%, 7/1/2021...................................................... 2,380,000 2,490,075
6.80%, 7/1/2023....................................................... 3,290,000 3,344,153
OHIO--.4%
Cuyahoga County, HR (Meridia Health System) 7%, 8/15/2023................... 7,000,000 7,220,220
Hamilton County, Hospital Facilities Revenue, Refunding
(Bethesda Hospital) 6.25%, 1/1/2012..................................... 3,115,000 3,089,083
Ohio Air Quality Development Authority, PCR (Cincinnati Gas and Electric)
10.125%, 12/1/2015...................................................... 5,500,000 5,830,220
OKLAHOMA--1.1%
Claremore Industrial and Redevelopment Authority, Economic Development
Revenue
(Yuba Project) 8.375%, 7/1/2011......................................... 7,500,000 7,894,275
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
OKLAHOMA (CONTINUED)
Southern Oklahoma Memorial Hospital Authority, HR 6.60%, 12/1/2012.......... $ 5,725,000 $ 5,831,313
Tulsa Municipal Airport Trust, Revenue:
(AMR Corp.) 7.60%, 12/1/2030............................................ 14,390,000 14,642,832
(American Airlines) 7.375%, 12/1/2020................................... 15,000,000 15,054,450
PENNSYLVANIA--.9%
Pennsylvania Economic Development Financing Authority,
Exempt Facilities Revenue (MacMillan Ltd. Partnership Project)
7.60%, 12/1/2020........................................................ 4,500,000 4,716,855
Philadelphia Hospitals and Higher Educational Facilities Authority, HR
(Philadelphia MR Project) 8.625%, 8/1/2011 (Prerefunded 8/1/1996) (c)... 3,000,000 3,223,800
Quakertown General Authority, Revenue (Community Mental Health/Retardation):
8.75%, 11/1/2000........................................................ 1,755,000 1,909,335
8.875%, 11/1/2010....................................................... 6,420,000 6,976,678
Ridley Park Hospital Authority, Revenue (Taylor Hospital)
8.625%, 12/1/2020 (Prerefunded 12/1/2000) (c)........................... 10,000,000 11,910,300
Schuykill County Industrial Development Authority, RRR,
Refunding (Schuykill Energy Resource Inc.) 6.50%, 1/1/2010.............. 4,790,000 4,457,861
RHODE ISLAND--1.3%
Rhode Island Health and Educational Building Corp., Revenue:
(Johnson and Wales University) 8.375%, 4/1/2020 (Prerefunded 4/1/2000) (c) 11,000,000 12,793,990
(Landmark Medical Center) 5.60%, 10/1/2012.............................. 5,000,000 4,605,750
Rhode Island Housing and Mortgage Finance Corp.
(Homeownership Opportunity):
6.95%, 4/1/2022....................................................... 9,250,000 9,471,538
6.50%, 4/1/2027....................................................... 9,835,000 9,703,703
6.85%, 4/1/2027....................................................... 5,750,000 5,864,942
Rhode Island Port Authority and Economic Development Corp.,
Airport Revenue 5.25%, 7/1/2015 (Insured: FSA).......................... 6,000,000 5,295,120
SOUTH CAROLINA--.5%
Richland County, Solid Waste Disposal Facilities Revenue
(Union Camp Corp. Project) 7.125%, 9/1/2021............................. 6,250,000 6,460,937
South Carolina Housing Finance and Development Authority,
Mortgage Revenue 6.75%, 7/1/2026........................................ 7,000,000 7,065,380
Spartanburg County, Hospital Facilities Improvement Revenue, Refunding
(Mary Black Memorial Project) 8.25%, 10/1/2008 (Prerefunded 10/1/1998) (c) 5,000,000 5,633,600
SOUTH DAKOTA--.1%
South Dakota Housing Development Authority, Homeownership Mortgage
5.70%, 5/1/2013......................................................... 3,000,000 2,797,290
TENNESSEE--1.5%
Humphreys County Industrial Development Board, SWDR
(E.I. Dupont Denemours and Co. Project) 6.70%, 5/1/2024................. 21,070,000 21,736,233
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
TENNESSEE (CONTINUED)
McMinn County Industrial Development Board, PCR (Calhoun Newsprint Co.
Project)
7.625%, 3/1/2016........................................................ $ 15,000,000 $ 15,679,050
Metropolitan Government Nashville and Davidson County, Water and Sewer
Revenue
6.074%, 1/1/2022 (Insured; AMBAC)....................................... 15,000,000 14,949,300
Tennessee Housing Development Agency, Mortgage Financing Program
6.90%, 7/1/2025......................................................... 4,150,000 4,227,895
TEXAS--6.7%
Alliance Airport Authority Inc., Special Facilities Revenue
(American Airlines Inc. Project):
7%, 12/1/2011......................................................... 17,330,000 17,142,316
7.50%, 12/1/2029...................................................... 25,905,000 26,188,142
Amarillo Health Facilities Corp., HR
(High Plains Baptist Hospital Project) 6.562%, 1/3/2022 (Insured; FSA).. 14,500,000 14,789,710
Angelina and Neches River Authority, SWDR (Champion International Corp.
Project)
7.375%, 5/1/2015........................................................ 5,570,000 5,799,373
Brazos County Health Facility Development Corp.,
Franciscan Services Corp. Revenue, Refunding
(Saint Joseph's Hospital and Health Center)
8.875%, 1/1/2015 (Prerefunded 1/1/1998) (c)............................. 14,875,000 16,721,434
Brazos River Authority, PCR (Texas Utilities Electric Co. Project):
7.875%, 3/1/2021........................................................ 8,400,000 8,985,984
6.10%, 4/1/2028 (Insured; FSA).......................................... 8,000,000 7,713,520
Denison Hospital Authority, HR, Refunding (Texoma Medical Center Project)
8%, 9/1/2016............................................................ 8,790,000 9,054,315
Gulf Coast Waste Disposal Authority, Revenue:
(Champion International Corp.):
7.375%, 10/1/2025..................................................... 12,000,000 12,409,920
6.875%, 12/1/2028..................................................... 11,500,000 11,298,405
Solid Waste Disposal (Occidental Petroleum Corp. Project) 7%, 11/1/2020. 7,725,000 7,810,362
Harris County Health Facilities Development Corp., HR
(Saint Luke's Episcopal Hospital Project) 6.75%, 2/15/2021.............. 5,000,000 5,092,100
Harris County Hospital District, Mortgage Revenue, Refunding
7.40%, 2/15/2010 (Insured; AMBAC)....................................... 5,000,000 5,765,550
Houston Hotel Occupancy Tax, Revenue 7%, 7/1/2009 (Insured; FGIC)........... 12,225,000 13,106,545
Richardson Hospital Authority, HR, Refunding and Improvement
(Richardson Medical Center Project) 6.50%, 12/1/2012.................... 12,750,000 11,982,832
Rio Grande Valley Health Facilities Development Corp., HR, Refunding
(Valley Baptist Medical Center Project) 6.40%, 8/1/2016 ................ 11,200,000 11,413,360
Sabine River Authority, PCR (Collateralized-Texas Utilities Electric Project)
8.25%, 10/1/2020........................................................ 4,000,000 4,332,360
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
TEXAS (CONTINUED)
Texas, GO (Veterans Housing Assistance Program)
7%, 12/1/2025........................................................... $ 30,500,000 $ 31,482,710
Texas General Service Commission, Lease Purchase Agreement
7.50%, 3/1/2012......................................................... 7,055,000 7,275,398
Texas Higher Education Coordinating Board,
College Student Loan Revenue (Senior Lien):
7.45%, 10/1/2006...................................................... 4,235,000 4,419,900
Zero Coupon, 10/1/2025................................................ 3,010,000 1,815,030
7.70%, 10/1/2025...................................................... 2,850,000 2,947,185
Texas Public Property Finance Corp., Revenue
(Mental Health and Retardation Project):
8.625%, 11/1/2000..................................................... 2,110,000 2,300,871
8.75%, 11/1/2010...................................................... 4,745,000 5,353,689
Texas Water Resources Finance Authority, Revenue 7.625%, 8/15/2008.......... 4,990,000 5,371,835
Tomball Hospital Authority, HR, Refunding (Tomball Regional Hospital)
6.125%, 7/1/2023........................................................ 4,000,000 3,336,920
UTAH--2.3%
Carbon County, SWDR, Refunding (Sunnyside Cogeneration) 9.25%, 7/1/2018..... 20,000,000 21,585,600
Intermountain Power Agency, Power Supply Revenue, Refunding 5.55%, 7/1/2011 44,000,000 41,690,880
Salt Lake County, HR (Intermountain Health Care Hospital)
7.875%, 8/1/2020 (Prerefunded 8/1/1995) (c)............................. 5,000,000 5,226,850
Utah Housing Finance Agency, Single Family Mortgage:
6.40%, 1/1/2027......................................................... 6,880,000 6,759,944
7%, 7/1/2027............................................................ 5,250,000 5,423,617
Utah Municipal Finance Cooperative, Local Government Revenue
(Pooled Capital - Salt Lake):
Zero Coupon, 3/1/2012 (Insured: FSA).................................. 7,385,000 2,609,859
Zero Coupon, 3/1/2013 (Insured: FSA).................................. 3,690,000 1,222,386
Zero Coupon, 3/1/2014 (Insured: FSA).................................. 3,190,000 990,208
Zero Coupon, 3/1/2015 (Insured: FSA).................................. 3,540,000 1,029,255
VERMONT--.3%
Vermont Housing Finance Agency, Single Family Housing 6.875%, 5/1/2025...... 10,500,000 10,601,745
VIRGINIA--1.2%
Giles County Industrial Development Authority,
Solid Waste Disposal Facility Revenue (Hoechst Celanese Corp. Project)
6.625%, 12/1/2022....................................................... 8,715,000 8,741,668
Henrico County Industrial Development Authority, Revenue
(Maryview Hospital Project) 7.50%, 9/1/2011 (Prerefunded 8/1/2000) (c).. 5,475,000 6,173,884
Virginia Housing Development Authority, Commonwealth Mortgage:
6.20%, 7/1/2021......................................................... 15,000,000 14,199,900
6.70%, 1/1/2022......................................................... 6,950,000 6,999,970
6.85%, 1/1/2027......................................................... 8,000,000 8,115,360
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- -------------
WASHINGTON--3.2%
Lake Washington School District No. 414, Kings County, Unlimited Tax GO
6.125%, 12/1/2006....................................................... $ 5,035,000 $ 5,244,657
Pilchuck Development Public Corp., Revenue, Special Facilities Airport
(Tramco Inc. Project) 6%, 8/1/2023...................................... 13,250,000 11,435,810
Public Utility District No. 1 of Chelan County,
Chelan Hydro Consolidated System Revenue 6.55%, 7/1/2023................ 10,000,000 10,066,000
Public Utility District No. 1 of Douglas County,
Wells Hydroelectric Revenue:
6.15%, 9/1/2013....................................................... 2,000,000 1,984,720
6.20%, 9/1/2018....................................................... 3,000,000 2,934,660
Puyallup School District No. 3, Pierce County:
6.65%, 12/1/2007........................................................ 2,000,000 2,120,140
6.70%, 12/1/2008........................................................ 4,515,000 4,774,116
Snohomish County School District No. 6, Mukilteo:
6.50%, 12/1/2011........................................................ 7,700,000 8,102,479
5.70%, 12/1/2012 (Insured; FGIC)........................................ 5,140,000 5,021,729
Tacoma, Electric System Revenue 6.513% 1/1/2015 (Insured; AMBAC)............ 12,000,000 12,258,360
Washington:
10%, 10/1/2002 (Insured; MBIA) (Prerefunded 10/1/1996) (c).............. 3,000,000 3,247,560
5.70%, 10/1/2015........................................................ 50,200,000 48,372,218
Washington Health Care Facilities Authority, Revenue
(Harrison Memorial Hospital, Bremerton) 5.30%, 8/15/2014 (Insured; AMBAC) 5,000,000 4,585,000
WISCONSIN--.3%
Janesville, IDR (Simmons Manufacturing Co., Inc. Project)
7%, 10/15/2017.......................................................... 3,000,000 3,086,340
Wisconsin Housing and Economic Development Authority,
Homeownership Revenue 6.45%, 3/1/2017................................... 5,000,000 5,003,850
Wisconsin Municipal Mutual Insurance Co., Revenue
8.50%, 12/1/2007 (LOC; Fuji Bank) (d)................................... 2,500,000 2,674,900
WYOMING--.6%
Sweetwater County, SWDR (FMC Corp. Project):
7%, 6/1/2024............................................................ 6,080,000 6,064,010
6.90%, 9/1/2024......................................................... 10,725,000 10,711,379
Uinta County Hospital Facility, Revenue, Refunding
(IHC Hospitals Inc.) 7.25%, 2/15/2019................................... 7,350,000 7,670,166
U.S. RELATED--.5%
Commonwealth of Puerto Rico, 5.85%, 7/1/2010................................ 5,725,000 5,633,457
Puerto Rico Highway and Transportation Authority, Highway Revenue
5.50%, 7/1/2008......................................................... 14,000,000 13,228,040
--------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $ 3,315,972,919).................................................. $3,380,132,698
==============
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS--10.5% AMOUNT VALUE
---------------- -------------
ALABAMA--.1%
Phenix City Industrial Development Board, Environmental Improvement Revenue,
VRDN (Mead Coated Board Project)
3.90%, (LOC; The Toronto Dominion Bank) (d,h)........................... $ 3,100,000 $ 3,100,000
ARIZONA--.2%
Apache County Industrial Development Authority, IDR, VRDN (Tucson Electric
Power - Springerville Project) 4.20% (h)................................ 300,000 300,000
Phoenix, VRDN 4% (h)........................................................ 4,500,000 4,500,000
Pima County Industial Development Authority, Industrial Revenue, VRDN (Tuscon Electric)
4.10% (LOC; Bank America National Trust and Saving Association) (d,h)... 1,150,000 1,150,000
CALIFORNIA--.9%
California Pollution Control Financing Authority, SWDR, VRDN
(Shell Oil Co. Martinez Project) 3.95% (h).............................. 4,500,000 4,500,000
Los Angeles, Multi-Family Revenue (Loans to Lender Program)
VRDN 4% (LOC; Federal Home Loan Bank of San Francisco) (d,h)............ 2,000,000 2,000,000
Los Angeles County Metropolitan Transportation Authority,
Sales Tax Revenue, Refunding, VRDN 3.90% (Insured; MBIA) (h)............ 11,300,000 11,300,000
Southern California Public Power Authority, Power Project Revenue,
Refunding, 5.40% (Insured; FGIC) (b).................................... 17,100,000 17,100,000
CONNECTICUT--.2%
Connecticut, Special Tax Obligation Revenue
(Transportation Infrastructure) VRDN 4% (LOC; Industrial Bank of Japan Ltd.) (d,h) 4,600,000 4,600,000
Connecticut Development Authority, Industrial Development,
VRDN (W.E. Basset Co. Project) 5% (h)................................... 2,400,000 2,400,000
FLORIDA--1.5%
Florida Board of Education, Capital Outlay, 4.15% (b,f)..................... 12,000,000 12,000,000
Jacksonville Health Facilities Authority, HR, VRDN (Baptist Medical
Center Project) 4% (LOC; First Union National Bank of Florida) (d,h).... 28,670,000 28,670,000
Pinellas County Health Facilities Authority, Revenue, Refunding, VRDN
(Pooled Hospital Loan Program) 3.75% (LOC; Chemical Bank) (d,h)......... 5,000,000 5,000,000
University Athletic Association Inc.,
VRDN (University of Florida Stadium Project) 3.70% (LOC; Sun Bank) (d,h) 11,400,000 11,400,000
GEORGIA--.9%
Georgia Municipal Association Pool Board, COP, VRDN 4% (Insured; MBIA) (h).. 35,000,000 35,000,000
ILLINOIS--.1%
Illinois Development Finance Authority, IDR, VRDN (Toyomenka Inc. Project)
5% (LOC; Tokai Bank Ltd.) (d,h)......................................... 2,000,000 2,000,000
IOWA--.1%
Iowa Finance Authority, SWDR, VRDN (Cedar River Paper Co. Project)
3.85% (LOC; Swiss Bank Corp.) (d,h)..................................... 3,100,000 3,100,000
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
---------------- ----------------
MARYLAND--.1%
Frederick, VRDN 4.25% (LOC; The Fuji Bank and Trust Co.) (d,h).............. $ 800,000 $ 800,000
Prince Georges' County Housing Authority, Mortgage Revenue, VRDN
(Laurel-Oxford)
4.125% (LOC; Bankers Trust) (d,h)....................................... 3,500,000 3,500,000
MASSACHUSETTS--.4%
Massachusetts, VRDN:
3.65% (LOC; National Westminister Bank) (d,h)........................... 4,400,000 4,400,000
3.65% (LOC; ABN/AMRO Bank) (d,h)........................................ 5,200,000 5,200,000
Massachusetts Health and Educational Facilities Authority, Revenue, VRDN:
(Capital Asset Program) 3.60% (Insured; MBIA) (h)....................... 3,800,000 3,800,000
(Harvard University) 3.75% (h).......................................... 1,000,000 1,000,000
MICHIGAN--.2%
Grand Rapids Economic Development Corp. , Revenue, VRDN
(Amway/Grand Plaza Hotel Facility No. 1) 4.15% (LOC; Old Kent Bank and
Trust) (d,h)................................................................ 1,000,000 1,000,000
Michigan Strategic Fund, Limited Obligation Revenue, VRDN
(Coil Center Corp. Project) 5% (LOC; Tokai Bank) (d,h).................. 5,300,000 5,300,000
MISSISSIPPI--.5%
Jackson County, Refunding Revenue, VRDN (Chevron USA Inc. Project):
Pollution Control 3.90% (h)............................................. 7,500,000 7,500,000
Port Facility 3.90% (h)................................................. 12,000,000 12,000,000
MONTANA--.5%
Forsyth, PCR, VRDN (Portland General Electric Co.)
3.95% (LOC; Banque Nationale de Paris) (d,h)............................ 20,600,000 20,600,000
NEW JERSEY--1.6%
New Jersey Sports and Exposition Authority, VRDN
3.90% (Insured; MBIA) (h)............................................... 4,500,000 4,500,000
New Jersey TRAN 5%, 6/15/1995............................................... 35,000,000 35,074,200
New Jersey Turnpike Authority, Turnpike Revenue, Refunding, VRDN
3.75% (Insured; FGIC) (h). ............................................. 20,800,000 20,800,000
NEW YORK--.3%
New York City, VRDN 4.05% (LOC; Industrial Bank of Japan) (d,h)............. 2,500,000 2,500,000
New York City Industrial Development Agency, IDR, VRDN
(Japan Airlines Co. Ltd. Project) 3.60% (LOC; Morgan Guaranty) (d,h).... 3,000,000 3,000,000
Port Authority of New York and New Jersey, Special Obligation Revenue,
VRDN 3.60% (h).......................................................... 4,400,000 4,400,000
NORTH CAROLINA--.1%
Wake County Industrial Facilities and Pollution Control Financing Authority,
Revenue, VRDN (Carolina Power and Light Co. Project)
3.90% (LOC; Sumitomo Bank, Ltd.) (d,h).................................. 4,000,000 4,000,000
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------- -------------
OHIO--.1%
Columbus, Sewer Revenue, Refunding, VRDN
3.90% (h)............................................................... $ 3,000,000 $ 3,000,000
Geauga County Industrial Development Revenue, VRDN
(General Signal Corp. Project) 4.10% (LOC; Wachovia Bank) (d,h)......... 2,000,000 2,000,000
OREGON--.1%
Oregon Economic Development Revenue, VRDN (JAE Oregon Inc. Project)
4.475% (LOC; Bank of Tokyo) (d,h)....................................... 3,300,000 3,300,000
PENNSYLVANIA--.2%
Allegheny County Higher Education Building Authority, Revenue,
VRDN (University of Pittsburgh) 4% (LOC; Fuji Bank) (d,h)............... 200,000 200,000
Bucks County Industrial Development Authority, VRDN
(Oxford Falls Plaza Project) 4.50% (h).................................. 300,000 300,000
Pennsylvania Economic Development Financing Authority,
Economic Development Revenue, VRDN
(6424 West Ridge Road Project) 4.30% (LOC; PNC Bank) (d,h).............. 500,000 500,000
Pennsylvania Higher Educational Assistance Agency, Student
Loan Revenue, VRDN 4.10% (LOC; Student Loan Marketing Association) (d,h) 5,000,000 5,000,000
Warren County Hospital Authority, Revenue, VRDN (Warren General Hospital
Project)
4.15% (LOC; PNC Bank) (d,h)............................................. 1,000,000 1,000,000
SOUTH CAROLINA--.2%
Orangeburg County, Solid Waste Disposal Facilities Revenue,
VRDN (South Carolina Electric and Gas)
3.90% (LOC; Nations Bank of North Carolina) (d,h)....................... 9,700,000 9,700,000
TEXAS--.6%
Bexar County Health Facilities Development Corp., HR, VRDN
(Air Force Village II) (LOC; Rabobank Nederland) 3.50% (d,h)............ 5,810,000 5,810,000
North Central Health Facility Development Corp., Revenue,
VRDN (Presbyterian Medical Center) 3.80% (Insured; MBIA) (h)............ 9,200,000 9,200,000
Texas Department of Housing and Community Affairs, Home Mortgage Revenue,
Refunding 4.40% (b)..................................................... 6,850,000 6,850,000
UTAH--.2%
Emery County, PCR, Refunding, VRDN (Pacificorp Projects)
4% (Insured; AMBAC) (h)................................................. 8,000,000 8,000,000
WASHINGTON--1.3%
Pilchuck Development Public Corp., Revenue, VRDN
(Kohkoku USA Project) 4.50% (LOC; Fuji Bank Ltd.) (d,h)................. 450,000 450,000
Student Loan Finance Association, Guaranteed Student Loan
Program Revenue, VRDN 4% (LOC; Sanwa Bank) (d,h)........................ 32,800,000 32,800,000
Washington Public Power, Supply System Revenue, VRDN:
(Nuclear Project No. 1) 5.40% (h)....................................... 6,100,000 6,100,000
(Nuclear Project No. 2) 5.40% (h)....................................... 5,000,000 5,000,000
(Nuclear Project No. 3) 5.40% (h)....................................... 4,000,000 4,000,000
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1995 (UNAUDITED)
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
------------ -------------
U.S. RELATED--.1%
Puerto Rico Electric Power Authority, Power Revenue, (Insured: FSA) 4% (b).. $ 1,100,000 $ 1,100,000
Puerto Rico Highway and Transportation Authority, Highway Revenue,
VRDN 3.50%, (LOC: Swiss Bank Corp., Union Bank of Switzerland)(d,h)..... 3,000,000 3,000,000
--------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $ 394,841,071).................................................... $ 394,804,200
==============
TOTAL INVESTMENTS--100.0%
(cost $ 3,710,813,990).................................................. $3,774,936,898
==============
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <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 Investors Assurance
FGIC Financial Guaranty Insurance Company 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 TRAN Tax and Revenue Anticipation Notes
IDR Industrial Development Revenue VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS
FITCH (I) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- --------- --------- -------------------- -----------------------
<S> <C> <S> <C>
AAA Aaa AAA 23.9%
AA Aa AA 26.3
A A A 16.9
BBB Baa BBB 18.0
BB Ba BB .3
F1 MIG1/P1 SP1/A1 9.1
Not Rated (j) Not Rated (j) Not Rated (j) 5.5
--------
100.0%
========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Wholly held by custodian as collateral for delayed delivery
security.
(b) Inverse Floater Security - the interest rate is subject to change
periodically.
(c) Bonds which are prerefunded are collateralized by U.S. government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(d) Secured by letters of credit.
(e) Partially held by custodian as collateral for delayed delivery
security
(f) 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,
1995 these securities amounted to $42,776,400 or 1.1% of net assets.
(g) Purchased on a delayed delivery basis.
(h) 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.
(i) Fitch currently provides creditworthiness information for a limited
number of investments.
(j) Securities which, while not rated by Fitch, Moody's or Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1995 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $3,710,813,990)_see statement................................... $3,774,936,898
Cash.................................................................... 9,216,582
Receivable for investment securities sold............................... 129,821,633
Interest receivable..................................................... 56,891,964
Receivable for Common Stock subscribed.................................. 31,000
Prepaid expenses........................................................ 81,060
----------------
3,970,979,137
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 1,753,879
Payable for investment securities purchased............................. 81,232,158
Payable for Common Stock redeemed....................................... 124,395
Accrued expenses........................................................ 387,684 83,498,116
------------- ----------------
NET ASSETS ................................................................ $3,887,481,021
================
REPRESENTED BY:
Paid-in capital......................................................... $3,866,388,892
Accumulated net realized (loss) on investments.......................... (43,030,779)
Accumulated net unrealized appreciation on investments_Note 3........... 64,122,908
----------------
NET ASSETS at value applicable to 319,150,475 outstanding shares of
Common Stock, equivalent to $12.18 per share
(600 million shares of $.01 par value authorized)....................... $3,887,481,021
================
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED FEBRUARY 28, 1995 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $125,808,407
EXPENSES:
Management fee_Note 2(a).............................................. $ 10,887,340
Shareholder servicing costs_Note 2(b)................................. 1,558,159
Custodian fees........................................................ 121,527
Professional fees..................................................... 74,632
Prospectus and shareholders' reports.................................. 40,538
Registration fees..................................................... 28,624
Directors' fees and expenses_Note 2(c)................................ 21,600
Miscellaneous......................................................... 80,063
--------------
TOTAL EXPENSES.................................................... 12,812,483
--------------
INVESTMENT INCOME--NET............................................ 112,995,924
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments_Note 3............................... $(43,013,107)
Net unrealized appreciation on investments.............................. 632,148
--------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (42,380,959)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 70,614,965
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
AUGUST 31, FEBRUARY 28, 1995
1994 (UNAUDITED)
--------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................ $ 249,332,136 $ 112,995,924
Net realized gain (loss) on investments........................... 40,066,377 (43,013,107)
Net unrealized appreciation (depreciation) on investments for the period (349,064,340) 632,148
--------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS. (59,665,827) 70,614,965
--------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income_net............................................. (249,332,136) (112,995,924)
Net realized gain on investments.................................. (110,423,674) (22,638,307)
--------------- --------------
TOTAL DIVIDENDS................................................. (359,755,810) (135,634,231)
--------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 3,541,071,359 2,065,374,236
Dividends reinvested.............................................. 239,678,805 87,140,312
Cost of shares redeemed........................................... (4,077,240,448) (2,208,491,370)
--------------- --------------
(DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........ (296,490,284) (55,976,822)
--------------- --------------
TOTAL (DECREASE) IN NET ASSETS.............................. (715,911,921) (120,996,088)
NET ASSETS:
Beginning of period............................................... 4,724,389,030 4,008,477,109
--------------- --------------
End of period..................................................... $4,008,477,109 $3,887,481,021
============== ==============
SHARES SHARES
---------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 271,726,312 174,926,423
Shares issued for dividends reinvested............................ 18,369,588 7,390,167
Shares redeemed................................................... (311,906,108) (186,724,065)
---------------- ----------------
NET (DECREASE) IN SHARES OUTSTANDING............................ (21,810,208) (4,407,475)
============== ==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
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 the Fund's financial statements.
SIX MONTHS ENDED
YEAR ENDED AUGUST 31, FEBRUARY 28, 1995
-------------------------------------------------------
PER SHARE DATA: 1990 1991 1992 1993 1994 (UNAUDITED)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $12.47 $12.24 $12.68 $13.17 $13.68 $12.39
------ ------ ------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net............ .90 .87 .84 .79 .75 .36
Net realized and unrealized gain (loss) on
investments..................... (.23) .44 .49 .79 (.96) (.14)
------ ------ ------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS .67 1.31 1.33 1.58 (.21) .22
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income_net (.90) (.87) (.84) (.79) (.75) (.36)
Dividends from net realized gain
on investments.................. _ _ _ (.28) (.33) (.07)
------ ------ ------ ------ ------ ------
TOTAL DISTRIBUTIONS............. (.90) (.87) (.84) (1.07) (1.08) (.43)
------ ------ ------ ------ ------ ------
Net asset value, end of period.... $12.24 $12.68 $13.17 $13.68 $12.39 $12.18
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 5.51% 11.11% 10.82% 12.62% (1.63%) 3.93%(1)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .67% .67% .68% .69% .68% .69%(1)
Ratio of net investment income to average
net assets...................... 7.23% 7.05% 6.49% 5.96% 5.80% 6.13%(1)
Portfolio Turnover Rate........... 28.06% 35.53% 67.86% 45.37% 36.25% 22.49%(2)
Net Assets, end of period (000's Omitted) $3,594,296 $4,081,440 $4,272,679 $4,724,389 $4,008,477 $3,887,481
(1) Annualized.
(2) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
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, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares which are sold to the public without a sales charge. 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. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
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, 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, 1995 was reduced by $175,000 pursuant to the settlement of
litigation.
DREYFUS MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 six months ended February 28, 1995.
(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 six months ended February 28,
1995, the Fund was charged an aggregate of $652,348 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.
The Chairman of the Board receives an additional 25% of such compensation.
NOTE 3--SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities
amounted to $3,484,513,626 and $3,641,779,642, respectively, for the six
months ended February 28, 1995, and consisted entirely of long-term and
short-term municipal investments.
At February 28, 1995, accumulated net unrealized appreciation on
investments was $64,122,908, consisting of $117,342,404 gross unrealized
appreciation and $53,219,496 gross unrealized depreciation.
At February 28, 1995, 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 LLP, 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, 1995, and the related statements of operations and changes in
net assets and financial highlights for the six month period ended February
28, 1995. 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, 1994 and financial highlights for each of the five years in the
period ended August 31, 1994 and in our report dated September 30, 1994, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
(Ernst & Young LLP signature logo)
New York, New York
March 31, 1995
(Dreyfus `D' logo)
DREYFUS MUNICIPAL
BOND FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
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. 054SA952
(Dreyfus logo)
Municipal
Bond Fund, Inc.
Semi-Annual
Report
February 28, 1995
(Dreyfus lion logo)
