Dreyfus
Premier Municipal
Bond Fund
ANNUAL REPORT April 30, 2000
(reg.tm)
The views expressed herein are current to the date of this report. These views
and the composition of the fund's portfolio are subject to change at any time
based on market and other conditions.
* Not FDIC-Insured * Not Bank-Guaranteed * May Lose Value
Contents
THE FUND
--------------------------------------------------
2 Letter from the President
3 Discussion of Fund Performance
6 Fund Performance
8 Statement of Investments
15 Statement of Assets and Liabilities
16 Statement of Operations
17 Statement of Changes in Net Assets
19 Financial Highlights
22 Notes to Financial Statements
27 Report of Independent Auditors
28 Important Tax Information
FOR MORE INFORMATION
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Back Cover
The Fund
Dreyfus Premier
Municipal Bond Fund
LETTER FROM THE PRESIDENT
Dear Shareholder:
We are pleased to present this annual report for Dreyfus Premier Municipal Bond
Fund, covering the 12-month period from May 1, 1999 through April 30, 2000.
Inside, you' ll find valuable information about how the fund was managed during
the reporting period, including a discussion with the fund's portfolio manager,
Samuel Weinstock.
When the reporting period began, evidence had emerged that the U.S. economy was
growing strongly in an environment characterized by high levels of consumer
spending and low levels of unemployment. Concerns that inflationary pressures
might re-emerge caused the Federal Reserve Board to raise short-term interest
rates five times during the reporting period, for a total increase of 1.25
percentage points. While higher interest rates generally led to an erosion of
municipal bond prices during much of the reporting period, the tax-exempt bond
market showed renewed signs of strength during the first four months of 2000.
Municipal bonds were also influenced by supply-and-demand considerations. These
technical influences have caused the yields of tax-exempt bonds to rise to very
attractive levels compared to the after-tax yields of taxable bonds of
comparable maturity and credit quality, making tax-exempt bonds especially
attractive for investors in the higher federal and state income tax brackets.
We appreciate your confidence over the past year, and we look forward to your
continued participation in Dreyfus Premier Municipal Bond Fund.
Sincerely,
Stephen E. Canter
President and Chief Investment Officer
The Dreyfus Corporation
May 15, 2000
DISCUSSION OF FUND PERFORMANCE
Samuel Weinstock, Portfolio Manager
How did Dreyfus Premier Municipal Bond Fund perform during the period?
For the 12-month period ended April 30, 2000, Dreyfus Premier Municipal Bond
Fund' s Class A shares provided a -5.01% total return, its Class B shares
provided a -5.51% total return and its Class C shares provided a -5.71% total
return.(1) In comparison, the Lipper General Municipal Debt Funds category
average provided a -3.31% total return.(2)
In a rising interest-rate environment, which caused most municipal bond prices
to decline over the past year, the fund's relative performance lagged that of
its category average. We attribute our underperformance to the fund's focus on
income.
What is the fund's investment approach?
Our goal is to seek as high a level of federally tax-exempt income as is
practical without undue risk from a diversified portfolio of municipal bonds
To achieve our objective, we employ four primary strategies. First, we strive to
identify the maturity range that we believe will provide the most favorable
returns over the next two years. Second, we evaluate issuers' credit quality to
find bonds that we believe provide high yields at attractive prices. Third, we
look for bonds with attractively high interest payments, even if they sell at a
premium to face value. Fourth, we assess individual bonds' early redemption
features, focusing on those that cannot be redeemed soon by their issuers.
Typically, the bonds we select for the fund will have several of these
qualities.
The Fund
DISCUSSION OF FUND PERFORMANCE (CONTINUED)
What other factors influenced the fund's performance?
Although the portfolio' s performance was hurt by a difficult investment
environment during the final two months of 1999, the first four months of 2000
generally provided better market conditions and a market rally. Although the
fund' s performance lagged that of its peer group, this rally helped offset much
-- but not all -- of 1999's decline.
When the reporting period began on May 1, 1999, investors had become concerned
that strong economic growth might rekindle long-dormant inflationary pressures,
especially rising wages in a tight job market. In an attempt to ease these
pressures and forestall a reacceleration of inflation, the Federal Reserve Board
raised short-term interest rates five times during the reporting period, causing
most bond prices to fall.
Municipal bond prices also fell during November and December 1999, because of
adverse supply-and-demand influences. For a variety of reasons, institutional
investors such as insurance companies and mutual funds participated less in the
tax-exempt market. Despite strong demand from individual investors, the absence
of institutional buyers helped reduce overall demand and drove municipal bond
prices down. During the first quarter of 2000, however, issuance of municipal
bonds nationally declined approximately 20% compared to the same period one year
ago. This supply reduction, combined with robust demand from individual
investors, helped support a rebound of municipal bond prices. However, because
of liquidity concerns, some of the fund's holdings did not recover as much as
the overall market.
What is the fund's current strategy?
We have changed the balance of assets in the fund from approximately 85%
income-oriented bonds and about 15% total return-oriented bonds to a target of
75% and 25% in each respective category. This shift is part of our continuing
effort to upgrade the fund's liquidity profile by gradually moving away from the
types of bonds that have underperformed the market over the past six months,
including some income-oriented bonds. Accordingly, we have sold some of our
longer
term, lower rated holdings, including bonds issued by industrial development
regions (IDRs) and health care facilities. We have attempted to invest the
proceeds of these sales in shorter term bonds with greater protection from early
redemptions. We have found such opportunities primarily among insured bonds that
we believe will appeal to retail investors if and when the time comes to sell
them.
These changes in the fund' s asset mix have modestly affected our duration
management strategy. At about 8.12 years as of April 30, the fund's average
duration -- a measure of sensitivity to changing interest rates -- is slightly
shorter than it was when the reporting period began.
May 15, 2000
(1) 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 APPLICABLE CONTINGENT DEFERRED SALES CHARGE
IMPOSED ON REDEMPTIONS IN THE CASE OF CLASS B AND CLASS C SHARES. HAD THESE
CHARGES BEEN REFLECTED, RETURNS WOULD HAVE BEEN LOWER. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. SHARE PRICE, YIELD AND INVESTMENT RETURN FLUCTUATE
SUCH THAT UPON REDEMPTION, FUND SHARES MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST. INCOME MAY BE SUBJECT TO STATE AND LOCAL TAXES AND SOME INCOME
MAY BE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX (AMT) FOR CERTAIN
INVESTORS. CAPITAL GAINS, IF ANY, ARE FULLY TAXABLE.
(2) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
The Fund
FUND PERFORMANCE
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
((+)) SOURCE: LIPPER ANALYTICAL SERVICES, INC.
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 (THE "FUND") ON 4/30/90 TO A $10,000 INVESTMENT MADE
IN THE LEHMAN BROTHERS MUNICIPAL BOND INDEX (THE "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. THE INDEX, UNLIKE THE FUND,
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 OR UNDERPERFORMING 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.
<TABLE>
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<S> <C> <C> <C> <C> <C>
Average Annual Total Returns AS OF 4/30/00
Inception From
Date 1 Year 5 Years 10 Years Inception
------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
WITH SALES CHARGE (4.5%) 11/26/86 (9.31)% 3.62% 6.29% --
WITHOUT SALES CHARGE 11/26/86 (5.01)% 4.58% 6.78% --
CLASS B SHARES
WITH REDEMPTION((+)) 1/15/93 (9.07)% 3.72% -- 4.53%
WITHOUT REDEMPTION 1/15/93 (5.51)% 4.04% -- 4.53%
CLASS C SHARES
WITH REDEMPTION((+)(+)) 7/13/95 (6.60)% -- -- 3.10%
WITHOUT REDEMPTION 7/13/95 (5.71)% -- -- 3.10%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
((+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS B SHARES IS 4% AND
IS REDUCED TO 0% AFTER SIX YEARS, AT WHICH TIME CLASS B SHARES CONVERT TO CLASS
A SHARES.
((+)(+)) THE MAXIMUM CONTINGENT DEFERRED SALES CHARGE FOR CLASS C SHARES IS 1%
FOR SHARES REDEEMED WITHIN ONE YEAR OF THE DATE OF PURCHASE.
The Fund
</TABLE>
<TABLE>
<CAPTION>
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STATEMENT OF INVESTMENTS
April 30, 2000
STATEMENT OF INVESTMENTS
Principal
LONG-TERM MUNICIPAL INVESTMENTS--96.3% Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA--1.3%
Foothill/Eastern Transportation Corridor Agency,
Toll Road Revenue 6%, 1/1/2034 5,000,000 5,325,600
COLORADO--7.8%
Arapahoe County Capital Improvement Trust Fund,
Highway Revenue (E-470 Project):
Zero Coupon, 8/31/2005 2,530,000 1,913,515
Zero Coupon, 8/31/2007 (Prerefunded 8/31/2005) 4,000,000 (a) 2,699,800
7%, 8/31/2026 (Prerefunded 8/31/2005) 11,000,000 (a) 12,275,010
Dawson Ridge, Metropolitan District Number 1
Zero Coupon, 10/1/2017 9,930,000 3,063,008
Denver City and County, Airport Revenue:
7.50%, 11/15/2023 (Prerefunded 11/15/2004) 2,060,000 (a) 2,295,108
7.50%, 11/15/2023 9,715,000 10,612,083
CONNECTICUT--5.0%
Connecticut Clean Water Fund, Revenue:
5.125%, 9/1/2013 10,000 9,755
5.204%, 9/1/2013 995,000 (b,c) 946,245
5.125%, 9/1/2014 10,000 9,637
5.204%, 9/1/2014 1,745,000 (b,c) 1,618,418
5.125%, 9/1/2016 40,000 37,841
5.204%, 9/1/2016 1,760,000 (b,c) 1,569,990
Connecticut Development Authority, PCR
(Connecticut Light & Power) 5.85%, 9/1/2028 8,000,000 7,224,960
Mashantucket Western Pequot Tribe, Special Revenue
5.75%, 9/1/2027 10,750,000 9,627,593
DELAWARE--1.8%
Delaware Housing Authority, MFMR 7%, 5/1/2025 3,725,000 3,862,341
Lee County Industrial Development Authority,
Health Care Facilities Revenue (Cypress Cove Health Park):
5.625%, 10/1/2002 2,000,000 1,964,260
5.875%, 10/1/2004 2,000,000 1,939,800
FLORIDA--3.2%
Miami-Dade County Industrial Development Authority,
Special Facilities Revenue (United Airlines, Inc.)
6.05%, 3/1/2035 3,000,000 3,024,030
Palm Beach County, Solid Waste IDR:
(Okeelanta Power LP Project) 6.85%, 2/15/2021 6,750,000 (d) 3,653,438
(Osceola Power LP) 6.95%, 1/1/2022 7,500,000 (d) 3,975,000
Santa Rosa Bay Bridge Authority, Revenue 6.25%, 7/1/2028 3,000,000 2,799,180
GEORGIA--.4%
Burke County Development Authority, PCR
(Georgia Power Plant) 5.45%, 5/1/2034 (Insured; MBIA) 1,920,000 1,730,304
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
HAWAII--.4%
Hawaii Department of Transportation, Special Facilities Revenue
(Continental Airlines, Inc.) 5.625%, 11/15/2027 1,850,000 1,508,527
ILLINOIS--2.8%
Carol Stream, First Mortgage Revenue
(Windsor Park Manor) 6.50%, 12/1/2007 2,000,000 1,991,100
Chicago O'Hare International Airport, Special Facility Revenue:
4.837%, 4/1/2011 2,725,000 (b,c) 2,190,083
(United Airlines, Inc.) 5.20%, 4/1/2011 50,000 45,093
East Chicago, PCR
(Inland Steel Co.) 7.125%, 6/1/2007 3,000,000 2,943,510
Illinois Development Finance Authority, Revenue
(Community Rehabilitation Providers Facility):
8.75%, 3/1/2010 157,000 159,598
8.50%, 9/1/2010 1,550,000 1,587,092
8.25%, 8/1/2012 2,835,000 2,996,595
INDIANA--6.4%
Indiana Development Finance Authority:
Environmental Improvement Revenue (USX Corp.)
6.15%, 7/15/2022 4,000,000 3,712,320
Exempt Facilities Revenue (Inland Steel) 5.75%, 10/1/2011 11,500,000 9,917,370
PCR (Inland Steel Co., Project Number 12) 6.85%, 12/1/2012 3,900,000 3,689,322
Indianapolis Airport Authority, Special Facilities Revenue
(United Airlines, Inc.) 6.50%, 11/15/2031 9,900,000 9,553,005
KENTUCKY--1.9%
Kentucky Economic Development Finance Authority,
Hospital System Improvement Revenue
(Appalachian Regional Health Center) 5.85%, 10/1/2017 3,000,000 2,075,850
Perry County, SWDR (TJ International):
7%, 6/1/2024 3,500,000 3,567,235
6.55%, 4/15/2027 2,500,000 2,440,625
LOUISIANA--3.0%
DeSoto Parish, PCR (Cleco Utility Group, Inc.)
5.875%, 9/1/2029 (Insured; AMBAC) 3,110,000 3,029,140
Louisiana Housing Finance Agency, MFHR
(LaBelle Projects) 9.75%, 10/1/2020 4,075,000 4,471,294
Saint Charles Parish, PCR:
6.361%, 10/1/2003 5,100,000 (b,c) 4,868,970
(Entergy, Inc.) 5.35%, 10/1/2029 50,000 48,868
MARYLAND--.7%
Maryland Energy Financing Administration, SWDR
(Wheelabrator Water) 6.45%, 12/1/2016 3,000,000 3,019,410
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS-2.4%
Massachusetts Industrial Finance Agency:
Health Care Facility Revenue (Metro Health Foundation, Inc.)
6.75%, 12/1/2027 8,000,000 7,282,640
Water Treatment Revenue (American Hingham)
6.95%, 12/1/2035 2,640,000 2,716,771
MICHIGAN--5.7%
Michigan Hospital Finance Authority, HR
5.36%, 11/1/2007 8,000,000 (b,c) 7,938,640
4.72%, 11/15/2033 2,000,000 (b,c) 1,940,620
(Genesys Regional Medical - A)
5.375%, 10/1/2013 4,000,000 3,917,520
Wayne Charter County, Special Airport Facilities Revenue
(Metropolitan Wayne County)
5.25%, 12/1/2014 (Insured; MBIA) 3,665,000 3,459,540
(Northwest Airlines, Inc.) 6.75%, 12/1/2015 4,985,000 4,953,744
Wayne County Building Authority
8%, 3/1/2017 (Prerefunded 3/1/2002) 1,500,000 (a) 1,608,915
NEW JERSEY-5.3%
New Jersey Sports and Exposition Authority, Revenue
(Monmouth Park) 8%, 1/1/2025 (Prerefunded 1/1/2005) 4,000,000 (a) 4,556,960
New Jersey Turnpike Authority, Turnpike Revenue:
7.77%, 1/1/2011 6,350,000 (b,c) 7,189,279
6%, 1/1/2011 (Insured; MBIA) 75,000 79,957
5.625%, 1/1/2015 (Insured; MBIA) 4,700,000 4,741,454
5.50%, 1/1/2030 (Insured; MBIA) 6,000,000 5,725,620
NEW MEXICO--.6%
Farmington, PCR
(Public Service Co. - San Juan Project) 6.375%, 4/1/2022 2,500,000 2,396,100
NEW YORK--16.1%
New York City:
7.10%, 2/1/2009 350,000 366,580
7.10%, 2/1/2009 (Prerefunded 2/1/2002) 210,000 (a) 220,945
New York City Industrial Development Agency
IDR, (Laguardia Associates LP Project)
5.80%, 11/1/2013 8,710,000 7,866,175
New York State Dormitory Authority, Revenues:
5.04%, 2/15/2013 (Insured; MBIA) 6,400,000 (b,c) 5,918,656
(Bronx/Lebanon Hospital) 5.20%, 2/15/2013 (Insured; MBIA) 60,000 57,743
(New York University):
5.75%, 7/1/2016 (Insured; MBIA) 2,300,000 2,359,639
6%, 7/1/2017 (Insured; MBIA) 3,500,000 3,678,605
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK (CONTINUED)
New York State Energy Research and Development Authority,
Electric Facilities Revenue (Long Island Lighting Co.):
7.15%, 9/1/2019 2,535,000 2,645,475
7.15%, 9/1/2019 (Prerefunded 6/15/2002) 1,115,000 (a) 1,181,209
7.15%, 6/1/2020 2,980,000 3,109,868
7.15%, 6/1/2020 (Prerefunded 6/15/2002) 1,020,000 (a) 1,080,568
7.15%, 12/1/2020 1,320,000 1,377,526
7.15%, 12/1/2020 (Prerefunded 6/15/2002) 3,680,000 (a) 3,898,518
7.15%, 2/1/2022 (Prerefunded 6/15/2002) 7,500,000 (a) 7,945,350
New York State Thruway Authority,
Service Contract Revenue:
5.141%, 4/1/2010 4,950,000 (b,c) 4,728,933
(Local Highway and Bridge) 5.25%, 4/1/2010 100,000 97,692
New York State Urban Development Corporation, Revenue
(Correctional Facilities Service Contract):
5.25%, 1/1/2010 (Insured; AMBAC) 5,000,000 4,982,750
5.25%, 1/1/2011 (Insured; AMBAC) 4,000,000 3,962,680
5.25%, 1/1/2012 (Insured; AMBAC) 3,500,000 3,438,365
5.25%, 1/1/2013 (Insured; AMBAC) 3,660,000 3,565,572
Port Authority of New York and New Jersey
5.35%, 9/15/2014 (Insured; FGIC) 1,655,000 1,629,314
Scotia Housing Authority, Housing Revenue
(Coburg Village, Inc. Project) 6.10%, 7/1/2018 4,000,000 3,446,920
NORTH CAROLINA--1.9%
Charlotte, Special Facilities Revenue
(Charlotte/Douglas International Airport) 5.60%, 7/1/2027 5,000,000 3,991,100
North Carolina Eastern Municipal Power Agency,
Power System Revenue 7%, 1/1/2013 3,500,000 3,785,810
OHIO--1.2%
Ohio Water Development Authority, Pollution Control
Facilites Revenue (Cleveland Electric) 6.10%, 8/1/2020 5,500,000 5,006,265
OKLAHOMA--1.7%
Holdenville Industrial Authority, Correctional Facility Revenue:
6.60%, 7/1/2010 (Prerefunded 7/1/2006) 2,045,000 (a) 2,215,696
6.70%, 7/1/2015 (Prerefunded 7/1/2006) 4,625,000 (a) 5,035,145
PENNSYLVANIA--3.7%
Beaver County Industrial Development Authority, PCR
3.713%, 6/1/2004 4,950,000 (b,c) 4,400,600
(Ohio Edison Company Project) 4.65%, 6/1/2033 100,000 94,554
Blair County Hospital Authority, Revenue (Altoona Hospital)
8.577%, 7/1/2013 (Insured; AMBAC) 5,000,000 (b) 5,247,400
The Fund
STATEMENT OF INVESTMENTS (CONTINUED)
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
Montgomery County Higher Education and Health Authority,
First Mortgage Revenue (AHF/Montgomery, Inc. Project)
10.50%, 9/1/2020 3,395,000 3,516,575
Pennsylvania Intergovernmental Cooperative Authority,
Special Tax Revenue (Philadelphia Funding Program)
6.80%, 6/15/2022 (Prerefunded 6/15/2002) 2,000,000 (a) 2,080,320
RHODE ISLAND--.7%
Providence, Special Tax Increment Obligation 6.65%, 6/1/2016 3,000,000 3,065,550
TENNESSEE--2.5%
Memphis Center Revenue Finance Corporation, Sports
Facility Revenue (Memphis Redbirds) 6.50%, 9/1/2028 8,000,000 7,321,520
Shelby County Health Educational and Housing Facilities,
Multi-Family Housing Board Revenue (Cameron Kirby)
7.25%, 7/1/2023 3,055,000 2,987,576
TEXAS--8.7%
Alliance Airport Authority, Special Facilities Revenue
7.001%, 4/1/2021 2,500,000 (b,c) 2,402,450
(Federal Express Corp. Project) 6.375%, 4/1/2021 40,000 39,220
Brazos River Authority, PCR
(Utilities Electric Company) 5.55%, 6/1/2030 4,275,000 3,637,085
Dallas-Fort Worth International Airport Facility Improvement
Corporation, Revenue (American Airlines, Inc.)
6.375%, 5/1/2035 7,500,000 7,152,975
Gulf Coast Waste Disposal Authority, Revenue
(Waste Disposal - Valero Energy Corp.) 5.60%, 4/1/2032 6,000,000 4,939,560
Houston Airport System, Special Facilities Improvement Revenue
(Continental Airlines Terminal)
6.125%, 7/15/2017 (Guaranteed; Continental Airlines, Inc.) 8,375,000 7,593,026
Rio Grande City Consolidated Independent School District
Public Facilities Corporation, LR
6.75%, 7/15/2010 6,000,000 6,258,960
Texas Public Property Finance Corp., Revenue
(Mental Health and Retardation Center)
8.20%, 10/1/2012 (Prerefunded 10/1/2002) 1,900,000 (a) 2,128,950
Tyler Health Facilities Development Corporation, HR
(Mother Frances Hospital) 5.625%, 7/1/2013 2,680,000 2,335,647
UTAH--2.8%
Carbon County, SWDR:
(East Carbon Development Corp.) 9%, 7/1/2012 3,800,000 3,810,222
(Sunnyside Cogeneration--A) 7.10%, 8/15/2023 7,600,000 7,340,840
(Sunnyside Cogeneration--B) Zero Coupon, 8/15/2024 2,320,000 377,000
Principal
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) Amount ($) Value ($)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA--.8%
Virginia Housing Development Authority, Commonwealth
Mortgage 5.50%, 1/1/2022 1,895,000 1,761,251
Henrico County Industrial Development Authority, Solid Waste
Revenue (Browning-Ferris Industries, Inc.) 5.875%, 3/1/2017 2,000,000 1,680,080
WEST VIRGINIA--1.7%
Upshur County, SWDR (TJ International Project) 7%, 7/15/2025 7,000,000 7,125,580
U.S. RELATED-5.8%
Puerto Rico Commonwealth:
6.25%, 7/1/2013 (Insured; MBIA) 3,000,000 3,286,950
5.65%, 7/1/2015 (Insured; MBIA) 4,000,000 4,119,520
Public Improvement:
5.25%, 7/1/2013 (Insured; MBIA) 6,000,000 5,985,420
6.50%, 7/1/2014 (Insured; MBIA) 5,000,000 5,600,250
Zero Coupon, 7/1/2015 (Insured; MBIA) 2,400,000 1,039,584
Puerto Rico Telephone Authority, Revenue
6.639%, 1/25/2007 (Insured; MBIA, Prerefunded 1/1/2003) 3,950,000 (a,b) 4,073,434
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $418,491,442) 403,494,881
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SHORT-TERM MUNICIPAL INVESTMENTS--1.0%
------------------------------------------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority, Revenue, VRDN
(Resurrection Health) 6.10% (Insured; FSA)
(cost $4,000,000) 4,000,000 (e) 4,000,000
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TOTAL INVESTMENTS (cost $422,491,442) 97.3% 407,494,881
CASH AND RECEIVABLES (NET) 2.7% 11,474,851
NET ASSETS 100.0% 418,969,732
The Fund
</TABLE>
STATEMENT OF INVESTMENTS (CONTINUED)
Summary of Abbreviations
AMBAC American Municipal Bond
Assurance Corporation
FGIC Financial Guaranty Insurance
Company
FSA Financial Security Assurance
HR Hospital Revenue
IDR Industrial Development Revenue
LR Lease Revenue
MBIA Municipal Bond Investors
Assurance Insurance
Corporation
MFHR Multi-Family Housing Revenue
MFMR Multi-Family Mortgage Revenue
PCR Pollution Control Revenue
SWDR Solid Waste Disposal Revenue
VRDN Variable Rate Demand Notes
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Summary of Combined Ratings (Unaudited)
Fitch or Moody's or Standard & Poor's Value (%)
------------------------------------------------------------------------------------------------------------------------------------
AAA Aaa AAA 37.5
AA Aa AA .9
A A A 5.9
BBB Baa BBB 17.6
BB Ba BB 6.5
B B B 3.2
F-1+ & F-1 MIG1, VMIG1 & P1 SP1 & A1 1.0
Not Rated(f) Not Rated(f) Not Rated(f) 27.4
100.0
</TABLE>
(A) 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.
(B) INVERSE FLOATER SECURITY -- THE INTEREST RATE IS SUBJECT TO CHANGE
PERIODICALLY.
(C) SECURITIES 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 APRIL 30, 2000,
THESE SECURITIES AMOUNTED TO $45,712,884 OR 10.9% OF NET ASSETS.
(D) NON-INCOME PRODUCING SECURITY; INTEREST PAYMENTS IN DEFAULT.
(E) SECURITY PAYABLE ON DEMAND. VARIABLE INTEREST RATE -- SUBJECT TO PERIODIC
CHANGE.
(F) SECURITIES WHICH, WHILE NOT RATED BY FITCH, MOODY'S AND STANDARD & POOR'S
HAVE BEEN DETERMINED BY THE MANAGER TO BE OF COMPARABLE QUALITY TO THOSE RATED
SECURITIES IN WHICH THE FUND MAY INVEST.
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2000
Cost Value
--------------------------------------------------------------------------------
ASSETS ($):
Investments in securities--See Statement of
Investments 422,491,442 407,494,881
Interest receivable 7,588,675
Receivable for investment securities sold 5,742,495
Receivable for shares of Beneficial Interest subscribed 122,316
Prepaid expenses 16,798
420,965,165
--------------------------------------------------------------------------------
LIABILITIES ($):
Due to The Dreyfus Corporation and affiliates 324,914
Cash overdraft due to Custodian 860,835
Payable for shares of Beneficial Interest redeemed 563,399
Payable for investment securities purchased 80,638
Accrued expenses 165,647
1,995,433
--------------------------------------------------------------------------------
NET ASSETS ($) 418,969,732
--------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS ($):
Paid-in capital 451,344,556
Accumulated net realized gain (loss) on investments (17,378,263)
Accumulated net unrealized appreciation (depreciation)
on investments--Note 4 (14,996,561)
--------------------------------------------------------------------------------
NET ASSETS ($) 418,969,732
<TABLE>
<CAPTION>
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE
Class A Class B Class C
------------------------------------------------------------------------------------------------------------------------------------
Net Assets ($) 361,567,038 52,979,085 4,423,609
Shares Outstanding 28,349,170 4,152,709 346,288
------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE ($) 12.75 12.76 12.77
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The Fund
STATEMENT OF OPERATIONS
Year Ended April 30, 2000
--------------------------------------------------------------------------------
INVESTMENT INCOME ($):
INTEREST INCOME 29,747,430
EXPENSES:
Management fee--Note 3(a) 2,631,751
Shareholder servicing costs--Note 3(c) 1,549,610
Distribution fees--Note 3(b) 430,666
Professional fees 125,039
Registration fees 52,204
Custodian fees 43,943
Trustees' fees and expenses--Note 3(d) 34,543
Prospectus and shareholders' reports 20,289
Loan commitment fees--Note 2 4,437
Miscellaneous 30,048
TOTAL EXPENSES 4,922,530
INVESTMENT INCOME--NET 24,824,900
--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--NOTE 4 ($):
Net realized gain (loss) on investments (17,425,166)
Net unrealized appreciation (depreciation) on investments (34,930,839)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (52,356,005)
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (27,531,105)
SEE NOTES TO FINANCIAL STATEMENTS.
STATEMENT OF CHANGES IN NET ASSETS
Year Ended April 30,
-----------------------------------
2000 1999
--------------------------------------------------------------------------------
OPERATIONS ($):
Investment income--net 24,824,900 27,649,465
Net realized gain (loss) on investments (17,425,166) 8,312,856
Net unrealized appreciation (depreciation)
on investments (34,930,839) (14,148,587)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (27,531,105) 21,813,734
--------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS FROM ($):
Investment income--net:
Class A shares (20,911,012) (22,022,212)
Class B shares (3,632,920) (5,367,735)
Class C shares (280,968) (259,518)
Net realized gain on investments:
Class A shares (4,812,233) (6,305,305)
Class B shares (821,235) (1,759,660)
Class C shares (60,751) (100,844)
TOTAL DIVIDENDS (30,519,119) (35,815,274)
--------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS ($):
Net proceeds from shares sold:
Class A shares 119,058,167 152,264,177
Class B shares 9,353,802 21,488,965
Class C shares 3,197,754 6,589,948
Dividends reinvested:
Class A shares 15,209,492 16,928,404
Class B shares 2,380,084 4,048,469
Class C shares 108,996 93,487
Cost of shares redeemed:
Class A shares (157,637,399) (174,041,478)
Class B shares (61,408,528) (29,371,046)
Class C shares (6,196,568) (1,389,501)
INCREASE (DECREASE) IN NET ASSETS FROM
BENEFICIAL INTEREST TRANSACTIONS (75,934,200) (3,388,575)
TOTAL INCREASE (DECREASE) IN NET ASSETS (133,984,424) (17,390,115)
--------------------------------------------------------------------------------
NET ASSETS ($):
Beginning of Period 552,954,156 570,344,271
END OF PERIOD 418,969,732 552,954,156
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
Year Ended April 30,
-----------------------------------
2000 1999
--------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
CLASS A(A)
Shares sold 8,947,487 10,430,316
Shares issued for dividends reinvested 1,155,931 1,160,521
Shares redeemed (11,919,959) (11,923,145)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,816,541) (332,308)
--------------------------------------------------------------------------------
CLASS B(A)
Shares sold 693,475 1,467,908
Shares issued for dividends reinvested 179,946 277,529
Shares redeemed (4,575,315) (2,023,258)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (3,701,894) (277,821)
--------------------------------------------------------------------------------
CLASS C
Shares sold 243,277 448,068
Shares issued for dividends reinvested 8,306 6,406
Shares redeemed (469,388) (95,671)
NET INCREASE (DECREASE) IN SHARES OUTSTANDING (217,805) 358,803
(A) FOR THE PERIOD ENDED APRIL 30, 2000, 2,612,242 CLASS B SHARES REPRESENTING
$34,929,103 WERE AUTOMATICALLY CONVERTED TO 2,613,946 CLASS A SHARES.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
The following tables describe the performance for each share class for the
fiscal periods indicated. All information (except portfolio turnover rate)
reflects financial results for a single fund share. Total return shows how much
your investment in the fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
figures have been derived from the fund's financial statements.
Year Ended April 30,
-------------------------------------------------------------------
CLASS A SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.33 14.69 14.11 13.85 13.86
Investment Operations:
Investment income--net .70 .72 .79 .82 .86
Net realized and unrealized
gain (loss) on investments (1.42) (.15) .66 .27 (.01)
Total from Investment Operations (.72) .57 1.45 1.09 .85
Distributions:
Dividends from investment income--net (.70) (.72) (.79) (.82) (.86)
Dividends from net realized gain
on investments (.16) (.21) (.08) (.01) --
Total Distributions (.86) (.93) (.87) (.83) (.86)
Net asset value, end of period 12.75 14.33 14.69 14.11 13.85
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(A) (5.01) 3.96 10.52 8.03 6.08
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets .93 .91 .91 .91 .92
Ratio of net investment income
to average net assets 5.28 4.96 5.42 5.84 5.98
Portfolio Turnover Rate 70.39 46.84 26.33 28.17 36.59
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 361,567 432,276 447,869 457,327 474,044
(A) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
The Fund
FINANCIAL HIGHLIGHTS (CONTINUED)
Year Ended April 30,
--------------------------------------------------------------------
CLASS B SHARES 2000 1999 1998 1997 1996
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.33 14.69 14.11 13.85 13.86
Investment Operations:
Investment income--net .63 .65 .72 .75 .78
Net realized and unrealized
gain (loss) on investments (1.41) (.15) .66 .27 (.01)
Total from Investment Operations (.78) .50 1.38 1.02 .77
Distributions:
Dividends from investment income--net (.63) (.65) (.72) (.75) (.78)
Dividends from net realized gain
on investments (.16) (.21) (.08) (.01) --
Total Distributions (.79) (.86) (.80) (.76) (.78)
Net asset value, end of period 12.76 14.33 14.69 14.11 13.85
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(A) (5.51) 3.43 9.95 7.49 5.53
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.45 1.42 1.42 1.43 1.43
Ratio of net investment income
to average net assets 4.71 4.44 4.89 5.33 5.46
Portfolio Turnover Rate 70.39 46.84 26.33 28.17 36.59
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 52,979 112,583 119,457 109,485 106,931
(A) EXCLUSIVE OF SALES CHARGE.
SEE NOTES TO FINANCIAL STATEMENTS.
Year Ended April 30,
-------------------------------------------------------------------
CLASS C SHARES 2000 1999 1998 1997 1996(a)
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA ($):
Net asset value, beginning of period 14.35 14.71 14.12 13.87 14.28
Investment Operations:
Investment income--net .60 .61 .68 .72 .60
Net realized and unrealized
gain (loss) on investments (1.42) (.15) .67 .26 (.41)
Total from Investment Operations (.82) .46 1.35 .98 .19
Distributions:
Dividends from investment income--net (.60) (.61) (.68) (.72) (.60)
Dividends from net realized gain
on investments (.16) (.21) (.08) (.01) --
Total Distributions (.76) (.82) (.76) (.73) (.60)
Net asset value, end of period 12.77 14.35 14.71 14.12 13.87
------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (%)(B) (5.71) 3.16 9.73 7.16 1.56(c)
------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA (%):
Ratio of expenses to average net assets 1.68 1.67 1.69 1.64 1.77(c)
Ratio of net investment income
to average net assets 4.52 4.11 4.55 5.01 4.84(c)
Portfolio Turnover Rate 70.39 46.84 26.33 28.17 36.59
------------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period ($ x 1,000) 4,424 8,095 3,019 1,049 340
(A) FROM JULY 13, 1995 (COMMENCEMENT OF INITIAL OFFERING) TO APRIL 30, 1996.
(B) EXCLUSIVE OF SALES CHARGE.
(C) ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
The 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, as amended (the "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 (the "Manager") serves
as the fund's investment adviser. The Manager is a direct subsidiary of Mellon
Bank, N.A, which is a wholly-owned subsidiary of Mellon Financial Corporation.
On April 12, 2000, the Board of Trustees approved an Agreement and Plan of
Reorganization providing for the transfer of all or substantially all of the
assets and liabilities of Dreyfus Premier State Municipal Bond, Georgia Series
(the "Series" ) to the fund in a tax free exchange of shares of beneficial
interest of the fund at net asset value and the assumption of stated
liabilities. The Agreement and Plan of Reorganization is subject to the approval
of the Series shareholders.
Effective March 22, 2000, Dreyfus Service Corporation ("DSC"), a wholly-owned
subsidiary of the Manager, became the distributor of the fund's shares. Prior to
March 22, 2000, Premier Mutual Fund Services, Inc. was the distributor. 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") imposed on Class B
share 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. Class B shares automatically convert to Class A shares after six
years. 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 The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
date. Under the terms of the custody agreement, the fund receives net earnings
credits based on available cash balances left on deposit.
(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 of 1986, as amended (the
" 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.
(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 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 $11,183,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 2000. This amount
is calculated based on federal income tax regulations which may differ from
financial reporting in accordance with generally accepted accounting principles.
If not applied, the carryover expires in fiscal 2008.
NOTE 2--Bank Line of Credit:
The fund participates with other Dreyfus-managed funds in a $500 million
redemption credit facility (the "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. During the period ended April
30, 2000, the fund did not borrow under the Facility.
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.
DSC retained $8,353 during the period ended April 30, 2000 from commissions
earned on sales of the fund's shares.
(b) Under the Distribution Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, Class B and Class C shares pay the distributor for distributing
their 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, 2000, Class B and
Class C shares were charged $384,225 and $46,441, respectively, pursuant to the
Plan, of which $30,110 and $3,652 for Class B and Class C shares, respectively,
were paid to DSC.
(c) Under the Shareholder Services Plan, Class A, Class B and Class C shares pay
the distributor at an annual rate of .25 of 1% of the value of the average daily
net assets of their 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, 2000, Class A, Class B and Class C
shares were charged $988,658, $192,112 and $15,480, respectively, pursuant to
the Shareholder Services Plan, of which $100,263, $15,055 and $1,217 for Class
A, Class B and Class C shares, respectively, were paid to DSC.
The Fund
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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. During the period
ended April 30, 2000, the fund was charged $173,917 pursuant to the transfer
agency agreement.
(d) Each Board member also serves as a Board member of other funds within the
Dreyfus complex (collectively, the "Fund Group"). Effective April 13, 2000, each
Board member receives an annual fee of $50,000 and a fee of $6,500 for each
meeting held in person and $500 for telephone meetings. These fees are allocated
among the funds in the Fund Group. The Chairman of the Board receives an
additional 25% of such compensation. Prior to April 13, 2000, each Board member
who was not an "affiliated person" as defined in the Act received from the fund
an annual fee of $2,500 and an attendance fee of $250 per meeting. The Chairman
of the Board received an additional 25% of such compensation. Subject to the
fund' s Director Emeritus Program Guidelines, Emeritus Board members, if any,
receive 50% of the fund's annual retainer fee and per meeting fee paid at the
time the Board member achieved emeritus status.
NOTE 4--Securities Transactions:
The aggregate amount of purchases and sales of investment securities, excluding
short-term securities, during the period ended April 30, 2000 amounted to
$331,140,027 and $430,361,750, respectively.
At April 30, 2000, accumulated net unrealized depreciation on investments was
$14,996,561, consisting of $9,600,666 gross unrealized appreciation and
$24,597,227 gross unrealized depreciation.
At April 30, 2000, 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).
REPORT OF 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, 2000 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 auditing standards generally accepted
in the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of April 30, 2000 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, 2000, 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 accounting principles generally accepted
in the United States.
New York, New York
June 7, 2000
The Fund
IMPORTANT TAX INFORMATION (Unaudited)
In accordance with Federal tax law, the fund hereby makes the following
designations regarding its fiscal year ended April 30, 2000:
-- all the dividends paid from investment income-net are "exempt-interest
dividends" (not generally subject to regular Federal income tax), and
-- the Fund hereby designates $.1603 per share as a long-term capital gain
distribution share paid on December 8, 1999.
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 2000 calendar year on Form 1099-DIV which
will be mailed by January 31, 2001.
For More Information
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
100 Church Street
New York, NY 10286
Transfer Agent & Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Distributor
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
To obtain information:
BY TELEPHONE Call your financial representative or 1-800-554-4611
BY MAIL Write to: The Dreyfus Premier Family of Funds 144 Glenn Curtiss
Boulevard Uniondale, NY 11556-0144
(c) 2000 Dreyfus Service Corporation 022AR004
