<PAGE> PAGE 1
000 A000000 02/28/95
000 C000000 771524
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 FEDERATED ARMS FUND
001 B000000 811-4539
001 C000000 4122888515
002 A000000 FEDERATED INVESTORS TOWER
002 B000000 PITTSBURGH
002 C000000 PA
002 D010000 15222
002 D020000 3779
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 FEDERATED MANAGEMENT
008 B000001 A
008 C000001 801-34610
008 D010001 PITTSBURGH
008 D020001 PA
008 D030001 15222
008 D040001 3779
010 A000001 FEDERATED ADMINISTRATIVE SERVICES
010 C010001 PITTSBURGH
010 C020001 PA
010 C030001 15222
010 C040001 3779
011 A000001 FEDERATED SECURITIES CORP.
011 B000001 8-15561
011 C010001 PITTSBURGH
011 C020001 PA
011 C030001 15222
011 C040001 3779
<PAGE> PAGE 2
012 A000001 FEDERATED SERVICES COMPANY
012 B000001 84-1869
012 C010001 PITTSBURGH
012 C020001 PA
012 C030001 15222
012 C040001 3779
013 A000001 ERNST & YOUNG LLP
013 B010001 PITTSBURGH
013 B020001 PA
013 B030001 15219
015 A000001 STATE STREET BANK AND TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02266
015 C040001 8604
015 E010001 X
015 A000002 BANKERS TRUST COMPANY
015 B000002 S
015 C010002 NEW YORK
015 C020002 NY
015 C030002 10015
015 E010002 X
015 A000003 BANK OF NEW YORK
015 B000003 S
015 C010003 NEW YORK
015 C020003 NY
015 C030003 10006
015 E010003 X
015 A000004 CHEMICAL BANK & TRUST CO.
015 B000004 S
015 C010004 NEW YORK
015 C020004 NY
015 C030004 10006
015 E010004 X
015 A000005 MORGAN GUARANTY BANK & TRUST CO.
015 B000005 S
015 C010005 NEW YORK
015 C020005 NY
015 C030005 10015
015 E010005 X
015 A000006 NATIONSBANC CAPITAL MARKETS, INC.
015 B000006 S
015 C010006 RICHMOND
015 C020006 VA
015 C030006 23261
015 E010006 X
015 A000007 NATIONSBANK OF NORTH CAROLINA
015 B000007 S
015 C010007 CHARLOTTE
015 C020007 NC
<PAGE> PAGE 3
015 C030007 28255
015 E010007 X
015 A000008 PNC BANK, NA
015 B000008 S
015 C010008 PITTSBURGH
015 C020008 PA
015 C030008 15265
015 E010008 X
015 A000009 SECURITY PACIFIC NATIONAL TRUST CO.
015 B000009 S
015 C010009 NEW YORK
015 C020009 NY
015 C030009 10006
015 E010009 X
018 000000 Y
019 A000000 N
019 B000000 0
022 A000001 MORGAN GUARANTY TRUST CO. OF NEW YORK
022 B000001 13-5123346
022 C000001 1433820
022 D000001 43995
022 A000002 KIDDER, PEABODY & CO., INC.
022 B000002 13-5650440
022 C000002 990000
022 D000002 0
022 A000003 LEHMAN BROTHERS, INC.
022 B000003 13-2518466
022 C000003 839674
022 D000003 78753
022 A000004 CHEMICAL SECURITIES, INC.
022 C000004 143040
022 D000004 148624
022 A000005 SANWA-BGK SECURITIES CO.
022 B000005 13-3046258
022 C000005 210000
022 D000005 0
022 A000006 GREENWICH CAPITAL MARKETS, INC.
022 B000006 13-3172275
022 C000006 85274
022 D000006 118374
022 A000007 FEDERATED ADJUSTABLE RATE US GOV
022 C000007 76903
022 D000007 107814
022 A000008 FEDERAL HOME LOAN BANK
022 C000008 79938
022 D000008 67667
022 A000009 FIRST CHICAGO CAPITAL MARKETS, INC.
022 B000009 36-3595942
022 C000009 141000
022 D000009 0
022 A000010 PRUDENTIAL SECURITIES CORP.
<PAGE> PAGE 4
022 B000010 22-2347336
022 C000010 24986
022 D000010 50126
023 C000000 4323872
023 D000000 884142
024 000000 N
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 N
026 E000000 Y
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 Y
027 000000 Y
028 A010000 7039
028 A020000 1444
028 A030000 0
028 A040000 55760
028 B010000 8123
028 B020000 1565
028 B030000 0
028 B040000 76945
028 C010000 5045
028 C020000 1642
028 C030000 0
028 C040000 79457
028 D010000 4685
028 D020000 1508
028 D030000 0
028 D040000 80054
028 E010000 4079
028 E020000 1372
028 E030000 0
028 E040000 60467
028 F010000 4132
028 F020000 1359
028 F030000 0
028 F040000 53146
028 G010000 33103
028 G020000 8890
028 G030000 0
028 G040000 405829
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
034 000000 N
035 000000 0
<PAGE> PAGE 5
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 4
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.600
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 N
054 B000000 N
<PAGE> PAGE 6
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 N
054 I000000 N
054 J000000 N
054 K000000 N
054 L000000 N
054 M000000 N
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 25000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 5.6
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 3.5
062 N000000 89.7
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 4.5
064 A000000 N
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
<PAGE> PAGE 7
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 Y
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 642345
071 B000000 883849
071 C000000 1238075
071 D000000 52
072 A000000 6
072 B000000 38516
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 3858
072 G000000 487
072 H000000 0
072 I000000 26
072 J000000 135
072 K000000 0
072 L000000 11
072 M000000 12
<PAGE> PAGE 8
072 N000000 22
072 O000000 10
072 P000000 0
072 Q000000 58
072 R000000 10
072 S000000 21
072 T000000 523
072 U000000 0
072 V000000 0
072 W000000 30
072 X000000 5203
072 Y000000 1403
072 Z000000 34716
072AA000000 411
072BB000000 14107
072CC010000 5636
072CC020000 0
072DD010000 29144
072DD020000 5403
072EE000000 0
073 A010000 0.2600
073 A020000 0.2500
073 B000000 0.0000
073 C000000 0.0000
074 A000000 2
074 B000000 62885
074 C000000 0
074 D000000 1046746
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 18850
074 M000000 0
074 N000000 1128483
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 5507
074 S000000 0
074 T000000 1122976
074 U010000 99211
074 U020000 17758
074 V010000 9.60
074 V020000 9.60
<PAGE> PAGE 9
074 W000000 0.0000
074 X000000 2350
074 Y000000 0
075 A000000 0
075 B000000 1296339
076 000000 0.00
077 A000000 N
078 000000 N
080 C000000 0
081 B000000 0
082 B000000 0
SIGNATURE S. ELLIOTT COHAN
TITLE ASST. GEN. COUNSEL
<TABLE> <S> <C>
<S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> Federated ARMs Fund
Institutional Shares
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Aug-31-1995
<PERIOD-END> Feb-28-1995
<INVESTMENTS-AT-COST> 1,112,259,612
<INVESTMENTS-AT-VALUE> 1,109,630,978
<RECEIVABLES> 18,849,886
<ASSETS-OTHER> 2,023
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,128,482,887
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,506,642
<TOTAL-LIABILITIES> 5,506,642
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,209,736,350
<SHARES-COMMON-STOCK> 99,210,800
<SHARES-COMMON-PRIOR> 128,609,253
<ACCUMULATED-NII-CURRENT> 169,008
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (84,300,479)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2,628,634)
<NET-ASSETS> 952,485,030
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 38,516,159
<OTHER-INCOME> 0
<EXPENSES-NET> 3,800,250
<NET-INVESTMENT-INCOME> 34,715,909
<REALIZED-GAINS-CURRENT> (13,696,328)
<APPREC-INCREASE-CURRENT> 5,635,812
<NET-CHANGE-FROM-OPS> 26,655,393
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 29,144,266
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,522,533
<NUMBER-OF-SHARES-REDEEMED> 32,672,606
<SHARES-REINVESTED> 751,621
<NET-CHANGE-IN-ASSETS> (371,727,780)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (70,604,151)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,858,126
<INTEREST-EXPENSE> 58,109
<GROSS-EXPENSE> 5,203,374
<AVERAGE-NET-ASSETS> 1,296,338,674
<PER-SHARE-NAV-BEGIN> 9.630
<PER-SHARE-NII> 0.260
<PER-SHARE-GAIN-APPREC> (0.030)
<PER-SHARE-DIVIDEND> 0.260
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.600
<EXPENSE-RATIO> 55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
<TABLE> <S> <C>
<S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> Federated ARMs Fund
Institutional Service Shares
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Aug-31-1995
<PERIOD-END> Feb-28-1995
<INVESTMENTS-AT-COST> 1,112,259,612
<INVESTMENTS-AT-VALUE> 1,109,630,978
<RECEIVABLES> 18,849,886
<ASSETS-OTHER> 2,023
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,128,482,887
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,506,642
<TOTAL-LIABILITIES> 5,506,642
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,209,736,350
<SHARES-COMMON-STOCK> 17,757,883
<SHARES-COMMON-PRIOR> 26,564,711
<ACCUMULATED-NII-CURRENT> 169,008
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (84,300,479)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2,628,634)
<NET-ASSETS> 170,491,215
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 38,516,159
<OTHER-INCOME> 0
<EXPENSES-NET> 3,800,250
<NET-INVESTMENT-INCOME> 34,715,909
<REALIZED-GAINS-CURRENT> (13,696,328)
<APPREC-INCREASE-CURRENT> 5,635,812
<NET-CHANGE-FROM-OPS> 26,655,393
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5,402,635
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 949,588
<NUMBER-OF-SHARES-REDEEMED> 9,937,496
<SHARES-REINVESTED> 181,080
<NET-CHANGE-IN-ASSETS> (371,727,780)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (70,604,151)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,858,126
<INTEREST-EXPENSE> 58,109
<GROSS-EXPENSE> 5,203,374
<AVERAGE-NET-ASSETS> 1,296,338,674
<PER-SHARE-NAV-BEGIN> 9.630
<PER-SHARE-NII> 0.250
<PER-SHARE-GAIN-APPREC> (0.030)
<PER-SHARE-DIVIDEND> 0.250
<PER-SHARE-DISTRIBUTIONS> 0.000
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 9.600
<EXPENSE-RATIO> 80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.000
</TABLE>
