DREYFUS PREMIER MUNICIPAL BOND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance of the Dreyfus Premier
Municipal Bond Fund for its fiscal year ended April 30, 1997 as shown in the
following table:
<TABLE>
<CAPTION>
TOTAL RETURN* DISTRIBUTION RATE**
________________ ______________________
<S> <C> <C>
Class A................................ 8.03% 5.57%
Class B................................ 7.49% 5.32%
Class C................................ 7.16% 5.09%
</TABLE>
ECONOMIC REVIEW
The U.S. economy just kept rolling ahead over the reporting period.
Inflation remained subdued. The unemployment rate fell
to its lowest level in 24 years, and a surge in tax revenues meant good news
for the Administration's budget reduction program. Overall, the economic news
has been stellar.
The economy grew at a robust 5.6% annual rate during the first quarter,
the best quarter in nine years. Aided by falling energy prices, and with no
sign of shortages of raw materials, inflation remained in check. On the
consumer level, the Consumer Price Index (CPI) remained below 3%. Excluding
volatile food and energy prices, the CPI is slowing down so far this year,
running at an annual rate of 2.5%. Inflation has been further restrained by
the strong dollar which has moderated the price of imports and eased
potential strains on domestic production capacity.
The strong economy has put an increasing number of people to work. This
tightening of the labor market has been a key factor in the implementation of
monetary policy by the Federal Reserve Board's Open Market Committee (FOMC).
The unemployment rate has been less than 5.5% since June 1996, the lowest
sustained rate since the late 1980s. The rate fell to 4.9% in April of this
year, its lowest level in 24 years. So far, neither strong economic growth
nor wage increases have resulted in any price pressure at the consumer level.
Through the first quarter (the latest available data), total employment costs
(including wages and benefits) rose about the same as inflation.
Renewed confidence, spurred by increasing job security and low
inflation, has resulted in a surge in consumer spending. In the first quarter
of the year, spending rose 6.4%, almost double the rate of the previous
year's fourth quarter. The combined six-month performance was the largest
increase in consumer spending over the past ten years. Retail sales have
spurted in the early part of this year as well; first quarter results were
sharply higher than in the last quarter of 1996. Not surprisingly, industrial
production has been building momentum over the reporting period. The latest
report on capacity utilization indicated the highest level in two years. So
far, while the potential exists for production bottlenecks, prices for raw
materials and worker wage demands have remained modest.
Continued economic growth and the resulting rise in tax revenues have
slashed further the Federal budget deficit. Administration officials estimate
that this fiscal year's deficit will be about $75 billion, its lowest level
in 23 years. Such good news on the deficit could make it easier to negotiate
the Administration's bipartisan plan to balance the budget by 2002.
While we seem to be enjoying the best of all possible economic worlds,
the potential for future inflation is what concerns the Fed. Such concern
resulted in the March decision by the FOMC, the policy-making arm of the
Federal Reserve, to raise the Federal Funds rate one quarter of a percentage
point to 5.50%. (The Federal Funds rate is the rate of interest banks charge
each other for overnight loans.) The traditional assumption that strong
economic growth and low unemployment will eventually result in rising
inflation still drives the Fed's monetary policy initiatives. There is little
reason to suspect that the Fed will soon change this policy.
MARKET ENVIRONMENT
Despite the assumption of a twenty-five basis point rate hike
incorporated into most long-term securities in advance of the Federal Reserve
meeting on March 25, prices of those securities actually fell an additional
twenty-five basis points after the announcement, reaching a 7.17% yield on
the thirty-year Treasury bellwether bond on April 17. Due to good inflation
data, the market later recovered to the 6.85% level, and then retreated to a
7.00% yield, after the FOMC, at its meeting on May 20, decided to hold
short-term rates steady. This action normally would have encouraged higher
prices, but has instead generated some price erosion.
The volatility in the general fixed income market belies the remarkable
stability of the municipal bond market. Since February 15, the thirty-year
Treasury bond has corrected by nearly forty basis points. By comparison,
municipal bond futures are off only one and three-quarters points and cash
securities (the bonds themselves) are flat to off one point. This substantial
outperformance by municipals has led to municipal/Treasury yield ratios which
are as low as have been seen in over two years.
PORTFOLIO OVERVIEW
Your portfolio is made up of securities that are indicative of the
relative stability of municipals compared to their taxable counterparts. Many
new issue purchases and existing holdings are slightly shorter than the
traditional maturity range to enable the Fund to maintain a competitive yield
while reducing potential volatility should interest rates change. Over the
reporting period the Fund was comprised of many securities with 6% or greater
coupons for added stability and income, as well as some 5% to 5-1/4% coupon
securities for potential price performance. These barbell strategy-oriented
securities provide balance and liquidity, and are in especially high demand
by retail and institutional investors. This strategy continues to be utilized
due to its success over the past year.
While there are many strategies at work in the Fund, one of the central
themes continues to be emphasizing income. Since August, the Bond Buyer
Revenue Bond Index has varied only 15 basis points above or below 5.95%. This
narrow range indicator and the expectation of its continuation provide little
impetus to make changes to that theme. However, we continue to evaluate the
potentially changing financial landscape and stand ready to adjust our
positions accordingly.
Enclosed please find a copy of the recent portfolio holdings for your
review.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
May 16, 1997
New York, NY
* Total return includes reinvestment of dividends and any capital gains
paid, and does not take into consideration the maximum initial sales charge
in the case of Class A shares or the contingent deferred sales charge imposed
on redemptions in the case of Class B and Class C shares.
** Distribution rate per share is based upon dividends per share paid from
net investment income during the period, divided by the maximum offering
price at the end of the period in the case of Class A shares, or the net
asset value per share in the case of Class B and Class C shares, adjusted for
capital gain distributions. Some income may be subject to the Federal
Alternative Minimum Tax (AMT) for certain shareholders.
DREYFUS PREMIER MUNICIPAL BOND FUND APRIL 30, 1997
[Exhibit A]
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER
MUNICIPAL BOND FUND CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX
$21,905
Lehman Brothers
Municipal Bond Index*
Dollars
$21,190
Dreyfus Premier
Municipal Bond Fund
(Class A Shares)
*Source: Lehman Brothers
[Exhibit A]
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
CLASS A SHARES CLASS B SHARES
__________________________________________________________________ __________________________________________________________
% Return Reflecting
% Return Applicable Contingent
Reflecting % Return Deferred Sales
% Return Without Maximum Initial Assuming No Charge Upon
PERIOD ENDED 4/30/97 Sales Charge Sales Charge (4.5%) PERIOD ENDED 4/30/97 Redemption Redemption*
__________ ________________ __________________ _______________ ____________ _________________
<S> <C> <C> <C> <C> <C>
1 Year 8.03% 3.20% 1 Year 7.49% 3.49%
5 Year 7.22 6.23 From Inception (1/15/93) 5.88 5.49
10 Year 8.29 7.80
</TABLE>
CLASS C SHARES
__________________________________________________________________
% Return Reflecting
Applicable Contingent
% Return Deferred Sales
Assuming Charge Upon
PERIOD ENDED 4/30/97 No Redemption Redemption**
_________ _______________ ____________________
1 Year 7.16% 6.16%
From Inception (7/13/95) 4.64 4.64
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Class A shares of
Dreyfus Premier Municipal Bond Fund on 4/30/87 to a $10,000 investment made
in the Lehman Brothers Municipal Bond Index on that date. All dividends and
capital gain distributions are reinvested. Performance for Class B and Class
C shares will vary from the performance of Class A shares shown above due to
differences in charges and expenses.
The Fund invests primarily in municipal securities and its performance shown
in the line graph takes into account the maximum initial sales charge on
Class A shares and all other applicable fees and expenses. Unlike the Fund,
the Lehman Brothers Municipal Bond Index is an unmanaged total return
performance benchmark for the long-term, investment-grade tax exempt bond
market, calculated by using municipal bonds selected to be representative of
the municipal market overall. The Index does not take into account charges,
fees and other expenses which can contribute to the Index potentially
outperforming the Fund. Further information relating to Fund performance,
including expense reimbursements, if applicable, is contained in the
Financial Highlights section of the Prospectus and elsewhere in this report.
* The maximum contingent deferred sales charge for Class B shares is 4% and
is reduced to 0% after six years.
**The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of the date of purchase.
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS APRIL 30, 1997
Principal
Long-Term Municipal Investments_100.0% Amount Value
__________ __________
<S> <C> <C>
ALABAMA-.4%
Mobile Industrial Development Board, SWDR, Refunding
(Mobile Energy Services Co. Project) 6.95%, 1/1/2020.................... $ 2,500,000 $ 2,645,175
ARIZONA-.9%
Maricopa County Pollution Control Corporation, PCR, Refunding
(Public Service Co._New Mexico Project) 6.30%, 12/1/2026................ 5,000,000 4,945,400
CALIFORNIA-2.9%
Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue:
6%, 1/1/2034............................................................ 5,000,000 4,880,100
5%, 1/1/2035............................................................ 8,000,000 6,641,040
Sacramento Cogeneration Authority, Cogeneration Project Revenue
(Procter & Gamble Project) 6.50%, 7/1/2021.............................. 4,200,000 4,323,858
COLORADO-9.9%
Arapahoe County Capital Improvement Trust Fund, Highway Revenue (E-470 Project):
Zero Coupon, 8/31/2005.................................................. 2,530,000 1,554,634
Zero Coupon, 8/31/2007.................................................. 4,000,000 2,186,800
7%, 8/31/2026........................................................... 11,000,000 11,777,040
Dawson Ridge, Metropolitan District Number 1, Refunding:
Zero Coupon, 10/1/2017 (a).............................................. 9,930,000 2,544,860
Zero Coupon, 10/1/2022.................................................. 47,535,000 8,664,204
Denver City and County, Airport Revenue:
7.25%, 11/15/2023....................................................... 10,000,000 10,757,600
7.50%, 11/15/2023....................................................... 11,775,000 12,995,596
7%, 11/15/2025.......................................................... 4,225,000 4,413,646
CONNECTICUT-.6%
Connecticut Development Authority, First Mortgage Gross Revenue
(Elim Park Baptist Home, Inc. Project) 9%, 12/1/2020.................... 3,000,000 3,217,140
DELAWARE-.7%
Delaware Housing Authority, MFMR 7%, 5/1/2025............................... 3,725,000 3,852,097
FLORIDA-2.9%
Florida Ports Financing Commission, Revenue
(Transportation Trust Fund) 5.375%, 6/1/2027 (Insured; MBIA)............ 2,500,000 2,337,700
Palm Beach County, Solid Waste IDR:
(Okeelanta Power LP Project) 6.85%, 2/15/2021 (b)....................... 6,750,000 5,037,728
(Osceola Power LP) 6.95%, 1/1/2022 (b).................................. 7,500,000 5,566,875
Santa Rosa Bay Bridge Authority, Revenue 6.25%, 7/1/2028.................... 3,000,000 2,977,290
GEORGIA-.7%
Georgia Municipal Electric Authority, Power Revenue, Refunding
5.50%, 1/1/2020 (Insured; FGIC)......................................... 4,250,000 4,171,375
ILLINOIS-9.3%
Carol Stream, First Mortgage Revenue, Refunding
(Windsor Park Manor Project) 6.50%, 12/1/2007........................... 2,000,000 1,979,700
DREYFUS PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
__________ __________
ILLINOIS (CONTINUED)
Chicago O'Hare International Airport, Special Facility Revenue
(American Airlines, Inc. Project) 7.875%, 11/1/2025..................... $ 6,000,000 $ 6,461,640
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers Facility):
8.75%, 3/1/2010 (Prerefunded 3/1/1999) (c)............................ 5,458,000 5,954,351
8.75%, 3/1/2010....................................................... 1,092,000 1,170,493
8.50%, 9/1/2010....................................................... 4,535,000 4,817,213
8.25%, 8/1/2012....................................................... 4,080,000 4,298,076
Illinois Health Facilities Authority, Revenue (Beverly Farm Foundation)
9.125%, 12/15/2015 (Prerefunded 12/15/2000) (c)......................... 2,000,000 2,332,960
Robbins, RRR (Robbins Resource Recovery Partners) 8.375%, 10/15/2016........ 23,500,000 24,468,170
INDIANA-8.2%
East Chicago, PCR, Refunding:
(Inland Steel Co., Project Number 10) 6.80%, 6/1/2013................... 7,000,000 7,073,430
(Inland Steel Co., Project Number 11) 7.125%, 6/1/2007.................. 3,000,000 3,103,470
Indiana Development Finance Authority:
Environmental Improvement Revenue, Refunding (USX Corp. Project):
6.15%, 7/15/2022...................................................... 4,000,000 4,005,840
6.25%, 7/15/2030...................................................... 2,500,000 2,516,225
PCR, Refunding (Inland Steel Co., Project Number 12) 6.85%, 12/1/2012... 4,000,000 4,063,960
Indianapolis Airport Authority, Special Facilities Revenue:
(Federal Express Corp. Project) 7.10%, 1/15/2017........................ 7,500,000 8,083,725
(United Airlines, Inc. Project) 6.50%, 11/15/2031....................... 16,250,000 16,519,425
KENTUCKY-1.1%
Perry County, SWDR (TJ International Project):
7%, 6/1/2024............................................................ 3,500,000 3,627,855
6.55%, 4/15/2027 (d).................................................... 2,500,000 2,506,275
LOUISIANA-4.0%
Louisiana Housing Finance Agency, MFHR, Refunding
(LaBelle Projects) 9.75%, 10/1/2020..................................... 4,225,000 4,293,952
Louisiana Public Facilities Authority, Student Loan Revenue
7%, 9/1/2006............................................................ 3,000,000 3,151,110
Parish of West Feliciana, PCR:
(Gulf States Utilities_II) 7.70%, 12/1/2014............................. 7,000,000 7,582,890
(Gulf States Utilities_III) 7.70%, 12/1/2014............................ 6,500,000 7,041,255
MARYLAND-.6%
Maryland Energy Financing Administration, SWDR
(Wheelabrator Water Projects) 6.45%, 12/1/2016.......................... 3,000,000 3,119,760
MASSACHUSETTS-1.3%
Massachusetts Industrial Finance Agency, Water Treatment Revenue
(American Hingham) 6.95%, 12/1/2035..................................... 2,640,000 2,740,742
DREYFUS PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
__________ __________
MASSACHUSETTS (CONTINUED)
Massachusetts Water Resource Authority 5%, 12/1/2016 (Insured; MBIA)........ $ 5,000,000 $ 4,587,200
MICHIGAN-1.2%
Wayne Charter County, Special Airport Facilities Revenue, Refunding
(Northwest Airlines, Inc.) 6.75%, 12/1/2015............................. 5,000,000 5,154,050
Wayne County Building Authority 8%, 3/1/2017 (Prerefunded 3/1/2002) (c)..... 1,500,000 1,719,210
NEVADA-2.5%
Clark County, IDR (Southwest Gas Corp.) 7.50%, 9/1/2032..................... 13,000,000 13,991,900
NEW JERSEY-7.6%
Camden County Pollution Control Financing Authority, Solid Waste RRR
7.50%, 12/1/2010........................................................ 2,000,000 2,040,160
New Jersey Economic Development Authority, First Mortgage Gross Revenue
(The Evergreens) 9.25%, 10/1/2022....................................... 15,000,000 16,816,050
New Jersey Sports and Exposition Authority, Revenue, Refunding
(Monmouth Park) 8%, 1/1/2025............................................ 4,000,000 4,403,520
New Jersey Transportation Trust Fund Authority, Refunding
(Transportation System) 5%, 6/15/2015 (Insured; MBIA)................... 10,000,000 9,316,300
Union County Utilities Authority, Solid Waste Revenue 7.20%, 6/15/2014...... 9,500,000 9,741,965
NEW MEXICO-1.5%
Farmington, PCR:
Refunding (Public Service Co._San Juan Project) 6.375%, 4/1/2022........ 5,000,000 4,976,800
(Tucson Electric Power Company of San Juan) 6.95%, 10/1/2020............ 3,000,000 3,058,290
NEW YORK-10.4%
New York City:
8%, 6/1/2000............................................................ 2,190,000 2,401,488
7.50%, 2/1/2001......................................................... 5,000,000 5,394,850
7.10%, 2/1/2009......................................................... 5,000,000 5,339,300
7%, 2/1/2020............................................................ 10,000,000 10,581,900
6.625%, 2/15/2025....................................................... 7,000,000 7,248,850
New York State Energy Research and Development Authority,
Electric Facilities Revenue (Long Island Lighting Co.):
7.15%, 9/1/2019....................................................... 3,650,000 3,869,511
7.15%, 6/1/2020....................................................... 4,000,000 4,240,560
7.15%, 12/1/2020...................................................... 5,000,000 5,300,700
7.15%, 2/1/2022....................................................... 7,500,000 7,951,050
New York State Housing Finance Agency, Service Contract Obligation Revenue
7.30%, 3/15/2021 (Prerefunded 9/15/2001) (c)............................ 5,000,000 5,578,350
NORTH CAROLINA-2.6%
North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding:
7%, 1/1/2013............................................................ 3,500,000 3,836,910
6%, 1/1/2014............................................................ 6,750,000 6,613,650
DREYFUS PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
__________ __________
NORTH CAROLINA (CONTINUED)
North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue,
Refunding 5.375%, 1/1/2020 (Insured; AMBAC)............................. $ 4,000,000 $ 3,808,520
OKLAHOMA-1.2%
Holdenville Industrial Authority, Correctional Facility Revenue:
6.60%, 7/1/2010......................................................... 2,045,000 2,081,135
6.70%, 7/1/2015......................................................... 4,625,000 4,724,715
PENNSYLVANIA-6.4%
Beaver County Industrial Development Authority, PCR, Refunding 7.75%, 7/15/2025 6,000,000 6,543,420
Blair County Hospital Authority, Revenue (Altoona Hospital)
7.118%, 7/1/2013 (Insured; AMBAC) (e)................................... 5,000,000 5,505,900
Delaware County Industrial Development Authority, Revenue, Refunding
(Resource Recovery Facility) 6.20%, 7/1/2019............................ 5,000,000 5,028,250
Lancaster County Hospital Authority, Revenue (Health Center_United Church
Homes Project) 9.125%, 10/1/2014 (Prerefunded 10/1/1999) (c)............ 1,465,000 1,639,613
Lehigh County General Purpose Authority, Revenue (Wiley House):
8.75%, 11/1/2014........................................................ 2,000,000 2,079,260
9.50%, 11/1/2016........................................................ 3,000,000 3,224,220
Montgomery County Higher Education and Health Authority, First Mortgage Revenue
(AHF/Montgomery, Inc. Project) 10.50%, 9/1/2020......................... 3,475,000 3,753,070
Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue
(Philadelphia Funding Program) 6.80%, 6/15/2022 (Prerefunded 6/15/2002) (c) 2,000,000 2,176,380
Philadelphia, Water and Sewer Revenue 7.35%, 9/1/2004....................... 4,940,000 5,565,355
RHODE ISLAND-.6%
Providence, Special Obligation Tax Increment 6.65%, 6/1/2016................ 3,000,000 3,074,220
TEXAS-12.1%
Alliance Airport Authority, Special Facilities Revenue:
(American Airlines, Inc. Project) 7%, 12/1/2011......................... 10,700,000 11,843,188
(Federal Express Corp. Project) 6.375%, 4/1/2021........................ 5,000,000 5,044,650
Dallas-Fort Worth International Airport Facility, Improvement Revenue:
(American Airlines, Inc.) 7.50%, 11/1/2025.............................. 8,000,000 8,508,800
(Delta Airlines, Inc.) 7.125%, 11/1/2026................................ 4,200,000 4,378,668
Gulf Coast Waste Disposal Authority, Revenue
(Champion International Corp.) 7.45%, 5/1/2026.......................... 7,000,000 7,517,790
Houston Airport System, Special Facilities Improvement Revenue
(Continental Airline Terminal):
6.125%, 7/15/2017 (Guaranteed; Continental Airlines Inc.)............. 2,875,000 2,788,233
6.125%, 7/15/2027 (Guaranteed; Continental Airlines Inc.)............. 6,800,000 6,479,176
Lower Colorado River Authority, PCR
(Samsung Austin Semiconductor) 6.375%, 4/1/2027......................... 5,000,000 5,044,550
DREYFUS PREMIER MUNICIPAL BOND FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______________ _______________
TEXAS (CONTINUED)
Rio Grande City Consolidated Independent School District, Public Facilities Corp. LR
6.75%, 7/15/2010........................................................ $ 6,000,000 $ 6,162,480
Texas Public Property Finance Corp., Revenue (Mental Health and Retardation Center)
8.20%, 10/1/2012 (Prerefunded 10/1/2002) (c)............................ 8,305,000 9,544,023
UTAH-3.3%
Carbon County, SWDR, Refunding:
(East Carbon Development Corp.) 9%, 7/1/2012............................ 4,000,000 4,201,760
(Laidlaw Inc./ECDC Project) 7.50%, 2/1/2010............................. 3,300,000 3,631,188
(Sunnyside Cogeneration) 9.25%, 7/1/2018 (f)............................ 15,000,000 10,513,050
VIRGINIA-1.0%
Upper Occoquan Sewer Authority, Regional Sewer Revenue
5.15%, 7/1/2020 (Insured; MBIA)......................................... 6,000,000 5,559,840
WEST VIRGINIA-1.3%
Upshur County, SWDR (TJ International Project) 7%, 7/15/2025................ 7,000,000 7,277,900
U.S. RELATED-4.8%
Puerto Rico Commonwealth:
Public Improvement 6.50%, 7/1/2014 (Insured; MBIA)...................... 5,000,000 5,571,200
Refunding:
6.25%, 7/1/2013 (Insured; MBIA)....................................... 3,000,000 3,267,330
6%, 7/1/2014.......................................................... 400,000 403,084
Puerto Rico Commonwealth Aqueduct and Sewer Authority, Revenue, Refunding
6.25%, 7/1/2013......................................................... 8,000,000 8,596,320
Puerto Rico Commonwealth Highway and Transportation Authority, Highway
Revenue
5%, 7/1/2036............................................................ 5,000,000 4,359,300
Puerto Rico Electric Power Authority, Power Revenue 6.25%, 7/1/2017......... 520,000 537,982
Puerto Rico Telephone Authority, Revenue, Refunding
6.48%, 1/25/2007 (Insured; MBIA) (e).................................... 3,950,000 3,964,813
_____________
TOTAL INVESTMENTS (cost $536,562,833)....................................... $554,964,622
==============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue
IDR Industrial Development Revenue PCR Pollution Control Revenue
LR Lease Revenue RRR Resources Recovery Revenue
MBIA Municipal Bond Investors Assurance SWDR Solid Waste Disposal Revenue
Insurance Corporation
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (G) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
____ ________ _________________ _____________________
<S> <C> <C> <C>
AAA Aaa AAA 13.5%
A A A 9.5
BBB Baa BBB 38.7
BB Ba BB 13.7
B B B .6
Not Rated (h) Not Rated (h) Not Rated (h) 24.0
________
100.0%
=========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Wholly held by the custodian in a segregated account as collateral
for a delayed-delivery security.
(b) Subsequent to April 30, 1997, the owners/developers of the power
project filed for protection under the Federal Bankruptcy Code. Although
interest payments remain current as of June 5, 1997, this event has
resulted in a decline in the market value of this security.
(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) Purchased on a delayed-delivery basis.
(e) Inverse floater security-the interest rate is subject to change
periodically.
(f) Non-income producing security; interest payment in default.
(g) Fitch currently provides creditworthiness information for a limited
number of investments.
(h) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's have been determined by the Manager to be of comparable quality to
those rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997
COST VALUE
______________ ______________
<S> <C> <C>
ASSETS: Investments in securities_See Statement of Investments $536,562,833 $554,964,622
Cash....................................... 5,161,309
Interest receivable........................ 10,488,120
Receivable for shares of Beneficial Interest subscribed 565,965
Prepaid expenses........................... 41,413
______________
571,221,429
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 261,362
Due to Distributor......................... 160,611
Payable for investment securities purchased 2,513,191
Payable for shares of Beneficial Interest redeemed 373,527
Accrued expenses........................... 50,944
______________
3,359,635
______________
NET ASSETS.................................................................. $567,861,794
===============
REPRESENTED BY: Paid-in capital............................ $551,191,744
Accumulated net realized gain (loss) on investments (1,731,739)
Accumulated net unrealized appreciation (depreciation)
......on investments_Note 4 18,401,789
______________
NET ASSETS.................................................................. $567,861,794
===============
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE PER SHARE
____________________________________
CLASS A CLASS B CLASS C
____________ ____________ ____________
<S> <C> <C> <C>
Net Assets............................................... $457,326,987 $109,485,407 $1,049,400
Shares Outstanding.......................................... 32,415,496 7,758,931 74,297
NET ASSET VALUE PER SHARE................................... $14.11 $14.11 $14.12
====== ======= ========
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1997
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income............................ $39,068,835
EXPENSES: Management fee-Note 3(a).................. $ 3,180,718
Shareholder servicing costs-Note 3(c)...... 1,801,936
Distribution fees-Note 3(b)................ 549,961
Registration fees.......................... 89,776
Professional fees.......................... 75,408
Custodian fees............................. 57,304
Trustees' fees and expenses-Note 3(d)...... 38,109
Prospectus and shareholders' reports....... 27,092
Loan commitment fees-Note 2................ 3,255
Miscellaneous.............................. 31,507
_____________
TOTAL EXPENSES....................... 5,855,066
_______________
INVESTMENT INCOME-NET...................................................... 33,213,769
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments.... $ 3,461,461
Net unrealized appreciation (depreciation) on investments 7,755,927
_____________
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 11,217,388
_______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $44,431,157
===============
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
APRIL 30, 1997 APRIL 30, 1996
_________________ __________________
OPERATIONS:
Investment income-net.................................................. $ 33,213,769 $ 35,452,066
Net realized gain (loss) on investments................................. 3,461,461 13,702,073
Net unrealized appreciation (depreciation) on investments............... 7,755,927 (13,168,792)
_________________ ___________________
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS... 44,431,157 35,985,347
_________________ __________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares........................................................ (27,382,313) (29,748,887)
Class B shares........................................................ (5,784,609) (5,700,103)
Class C shares........................................................ (46,847) (3,076)
Net realized gain on investments:
Class A shares........................................................ (246,714) ____
Class B shares........................................................ (57,569) ____
Class C shares........................................................ (447) ____
_________________ __________________
TOTAL DIVIDENDS................................................... (33,518,499) (35,452,066)
_________________ __________________
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................ 97,168,956 40,674,840
Class B shares....................................................... 13,717,368 19,195,766
Class C shares..................................................... 1,639,929 359,668
Dividends reinvested:
Class A shares........................................................ 15,604,972 17,177,404
Class B shares........................................................ 3,291,903 3,289,792
Class C shares........................................................ 30,755 2,003
Cost of shares redeemed:
Class A shares........................................................ (138,425,542) (80,027,504)
Class B shares........................................................ (16,411,365) (14,906,844)
Class C shares........................................................ (983,046) (10,150)
_________________ __________________
INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (24,366,070) (14,245,025)
_________________ __________________
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... (13,453,412) (13,711,744)
NET ASSETS:
Beginning of Period................................................ 581,315,206 595,026,950
_________________ ___________________
End of Period................................................... $ 567,861,794 $ 581,315,206
================ ================
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
SHARES
___________________________________
YEAR ENDED YEAR ENDED
APRIL 30, 1997 APRIL 30, 1996
_________________ _________________
CAPITAL SHARE TRANSACTIONS:
CLASS A
________
Shares sold............................................................ 6,879,873 2,877,435
Shares issued for dividends reinvested................................. 1,104,332 1,202,513
Shares redeemed........................................................ (9,791,371) (5,613,780)
_________________ _________________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,807,166) (1,533,832)
================= ==================
CLASS B
________
Shares sold............................................................ 971,997 1,363,135
Shares issued for dividends reinvested................................. 232,925 230,256
Shares redeemed........................................................ (1,164,445) (1,045,329)
_________________ _________________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 40,477 548,062
================= ==================
CLASS C*
_________
Shares sold............................................................ 117,036 25,139
Shares issued for dividends reinvested................................. 2,175 141
Shares redeemed........................................................ (69,481) (713)
_________________ _________________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING 49,730 24,567
================= ==================
* From July 13, 1995 (commencement of initial offering) to April 30, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest 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.
CLASS A SHARES
_____________________________________________________________
YEAR ENDED APRIL 30,
_____________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period......... $13.85 $13.86 $13.81 $14.45 $13.75
______ ______ ______ ______ ______
INVESTMENT OPERATIONS:
Investment income-net....................... .82 .86 .84 .89 .92
Net realized and unrealized gain (loss)
on investments............................. .27 (.01) .05 (.59) .91
______ ______ ______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS............. 1.09 .85 .89 .30 1.83
______ ______ ______ ______ ______
DISTRIBUTIONS:
Dividends from investment income-net......... (.82) (.86) (.84) (.89) (.92)
Dividends from net realized gain on investments (.01) -- -- (.05) (.21)
______ ______ ______ ______ ______
TOTAL DISTRIBUTIONS.......................... (.83) (.86) (.84) (.94) (1.13)
______ ______ ______ ______ ______
Net asset value, end of period............... $14.11 $13.85 $13.86 $13.81 $14.45
======== ======= ======= ====== =======
TOTAL INVESTMENT RETURN*......................... 8.03% 6.08% 6.72% 1.84% 13.76%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .91% .92% .92% .85% .74%
Ratio of net investment income to average net assets.. 5.84% 5.98% 6.16% 6.01% 6.43%
Decrease reflected in above expense ratios
due to undertakings by the Manager......... -- -- -- .06% .20%
Portfolio Turnover Rate...................... 28.17% 36.59% 38.60% 22.15% 30.99%
Net Assets, end of period (000's Omitted).... $457,327 $474,044 $495,616 $546,036 $526,606
- ------------------------
* Exclusive of sales load.
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest 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.
CLASS B SHARES
_____________________________________________________________
YEAR ENDED APRIL 30,
_____________________________________________________________
PER SHARE DATA: 1997 1996 1995 1994 1993(1)
______ ______ ______ ______ ______
Net asset value, beginning of period......... $13.85 $13.86 $13.81 $14.45 $14.02
______ ______ ______ ______ ______
INVESTMENT OPERATIONS:
Investment income-net....................... .75 .78 .77 .80 .24
Net realized and unrealized gain (loss)
on investments............................. .27 (.01) .05 (.59) .43
______ ______ ______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS............. 1.02 .77 .82 .21 .67
______ ______ ______ ______ ______
DISTRIBUTIONS:
Dividends from investment income-net......... (.75) (.78) (.77) (.80) (.24)
Dividends from net realized gain on investments (.01) -- -- (.05) --
______ ______ ______ ______ ______
TOTAL DISTRIBUTIONS.......................... (.76) (.78) (.77) (.85) (.24)
______ ______ ______ ______ ______
Net asset value, end of period............... $14.11 $13.85 $13.86 $13.81 $14.45
====== ======= ======= ======== ========
TOTAL INVESTMENT RETURN(2).................... 7.49% 5.53% 6.15% 1.26% 16.80%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.43% 1.43% 1.44% 1.40% 1.15%(3)
Ratio of net investment income to average net assets 5.33% 5.46% 5.62% 5.33% 5.13%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager...... -- -- -- .05% .10%(3)
Portfolio Turnover Rate...................... 28.17% 36.59% 38.60% 22.15% 30.99%
Net Assets, end of period (000's Omitted)... $109,485 $106,931 $99,411 $95,643 $19,855
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS PREMIER MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest 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.
CLASS C SHARES
______________________________
YEAR ENDED APRIL 30,
______________________________
PER SHARE DATA: 1997 1996(1)
________ ________
<S> <C> <C>
Net asset value, beginning of period.................................... $13.87 $14.28
________ ________
INVESTMENT OPERATIONS:
Investment income-net.................................................. .72 .60
Net realized and unrealized gain (loss)
on investments........................................................ .26 (.41)
________ ________
TOTAL FROM INVESTMENT OPERATIONS........................................ .98 .19
________ ________
DISTRIBUTIONS:
Dividends from investment income-net.................................... (.72) (.60)
Dividends from net realized gain on investments......................... (.01) __
________ ________
TOTAL DISTRIBUTIONS..................................................... (.73) (.60)
________ ________
Net asset value, end of period.......................................... $14.12 $13.87
======== =========
TOTAL INVESTMENT RETURN(2).................................................. 7.16% 1.56%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. 1.64% 1.77%(3)
Ratio of net investment income to average net assets.................... 5.01% 4.84%(3)
Portfolio Turnover Rate................................................. 28.17% 36.59%
Net Assets, end of period (000's Omitted)............................... $1,049 $340
(1) From July 13, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
NOTE 1-Significant Accounting Policies:
Dreyfus Premier Municipal Bond Fund (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company. The Fund's investment objective is to maximize current
income exempt from Federal income tax to the extent consistent with the
preservation of capital. The Dreyfus Corporation ("Manager") serves as the
Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank,
N.A.
On January 8, 1997, the Fund's Trustees approved a change of the Fund's
name, effective March 31, 1997, from Premier Municipal Bond Fund to Dreyfus
Premier Municipal Bond Fund.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor
of the Fund's shares. The Fund is authorized to issue an unlimited number of
$.001 par value shares in each of the following classes of shares: Class A,
Class B and Class C. Class A shares are subject to a sales charge imposed at
the time of purchase, Class B shares are subject to a contingent deferred
sales charge ("CDSC") on redemptions made within six years of purchase (five
years for shareholders beneficially owning Class B shares on November 30,
1996) and Class C shares are subject to a CDSC imposed on Class C shares
redeemed within one year of purchase. Other differences between the classes
include the services offered to and the expenses borne by each class and
certain voting rights.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.
(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, it is the policy of the Fund not to distribute such gain.
DREYFUS PREMIER MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(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.
The Fund has an unused capital loss carryover of approximately $1,777,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1997. If not
applied, the carryover expires in fiscal 2003.
NOTE 2-Bank Line of Credit:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended April
30, 1997, the Fund did not borrow under the line of credit.
NOTE 3-Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management agreement with the Manager, the management
fee is computed at the annual rate of .55 of 1% of the value of the Fund's
average daily net assets and is payable monthly.
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $4,270 during the period ended April 30, 1997 from commissions
earned on sales of the Fund's shares.
(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and
Class C shares at an annual rate of .50 of 1% of the value of the average
daily net assets of Class B shares and .75 of 1% of the value of the average
daily net assets of Class C shares. During the period ended April 30, 1997,
$542,946 was charged to the Fund for the Class B shares and $7,015 was
charged to the Fund for the Class C shares.
(c) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the average daily net assets of
Class A, Class B and Class C shares for the provision of certain services.
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. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the period ended April 30, 1997,
$1,171,970, $271,473 and $2,338 were charged to Class A, Class B and Class C
shares, respectively, by the Distributor pursuant to the Shareholder Services
Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $262,310, during the period ended April 30, 1997.
(d) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS PREMIER MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 4-Securities Transactions:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1997,
amounted to $159,078,762 and $178,345,435, respectively.
At April 30, 1997, accumulated net unrealized appreciation on investments
was $18,401,789, consisting of $29,240,490 gross unrealized appreciation and
$10,838,701 gross unrealized depreciation.
At April 30, 1997, 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 PREMIER MUNICIPAL BOND FUND
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Trustees
Dreyfus Premier Municipal Bond Fund
We have audited the accompanying statement of assets and liabilities of
Dreyfus Premier Municipal Bond Fund, including the statement of investments,
as of April 30, 1997 and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two years
in the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of April 30, 1997 by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Premier Municipal Bond Fund at April 30, 1997, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
[Ernst & Young signature logo]
New York, New York
June 5, 1997
DREYFUS PREMIER MUNICIPAL BOND FUND
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income_net during its fiscal year ended April
30, 1997 as "exempt-interest dividends" (not generally subject to regular
Federal income tax).
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1997 calendar year
on Form 1099-DIV which will be mailed by January 31, 1998.
Dreyfus Premier
Municipal Bond Fund
200 Park Avenue
New York, NY 10166
Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
Custodian
The Bank of New York
90 Washington Street
New York, NY 10286
Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 022/612AR974
[lion2hres logo]
Registration Mark
Annual Report
Dreyfus
Premier Municipal
Bond Fund
April 30, 1997
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN PREMIER MUNICIPAL BOND FUND CLASS A SHARES AND
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
EXHIBIT A:
LEHMAN PREMIER
PERIOD BROTHERS MUNICIPAL
MUNICIPAL BOND FUND
BOND INDEX * (CLASS A SHARES)
4/30/87 10,000 9,553
4/30/88 10,875 9,901
4/30/89 11,846 11,300
4/30/90 12,699 12,005
4/30/91 14,158 13,461
4/30/92 15,504 14,954
4/30/93 17,466 17,012
4/30/94 17,843 17,325
4/30/95 19,030 18,489
4/30/96 20,542 19,614
4/30/97 21,905 21,190
* Source: Lehman Brothers
