<PAGE> PAGE 1
000 B000000 04/30/95
000 C000000 0000807394
000 D000000 N
000 E000000 NC
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 PRUDENTIAL MUNICIPAL BOND
FUND 001 B000000 811-4930
001 C000000 2122141250
002 A000000 199 WATER STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10292
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 3
007 C010100 1
007 C020100 HIGH YIELD SERIES
007 C030100 N
007 C010200 2
007 C020200 INSURED SERIES
007 C030200 N
007 C010300 3
007 C020300 MODIFIED TERM SERIES
007 C030300 N
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
007 C012100 21
007 C012200 22
007 C012300 23
<PAGE> PAGE 2
007 C012400 24
007 C012500 25
007 C012600 26
007 C012700 27
007 C012800 28
007 C012900 29
007 C013000 30
007 C013100 31
007 C013200 32
007 C013300 33
007 C013400 34
007 C013500 35
007 C013600 36
007 C013700 37
007 C013800 38
007 C013900 39
007 C014000 40
007 C014100 41
007 C014200 42
007 C014300 43
007 C014400 44
007 C014500 45
007 C014600 46
007 C014700 47
007 C014800 48
007 C014900 49
007 C015000 50
008 A00AA01 THE PRUDENTIAL INVESTMENT
CORP. 008 B00AA01 S
008 C00AA01 801-12484
008 D01AA01 NEWARK
008 D02AA01 NJ
008 D03AA01 07101
008 A00AA02 PRUDENTIAL MUTUAL FUND MANAGEMENT,
INC. 008 B00AA02 A
008 C00AA02 801-31104
008 D01AA02 NEW YORK
008 D02AA02 NY
008 D03AA02 10292
011 A00AA01 PRUDENTIAL SECURITIES
INCORPORATED 011 B00AA01 8-27154
011 C01AA01 NEW YORK
011 C02AA01 NY
011 C03AA01 10292
011 A00AA02 PRUDENTIAL MUTUAL FUND DISTRIBUTORS,
INC. 011 B00AA02 8-38739
011 C01AA02 NEW YORK
011 C02AA02 NY
011 C03AA02 10292
012 A00AA01 PRUDENTIAL MUTUAL FUND SERVICES,
INC. 012 B00AA01 84-10019
<PAGE> PAGE 3
012 C01AA01 NEW BRUNSWICK
012 C02AA01 NJ
012 C03AA01 08906
013 A00AA01 DELOITTE & TOUCHE
013 B01AA01 NEW YORK
013 B02AA01 NY
013 B03AA01 10019
014 A00AA01 PRUDENTIAL SECURITIES
INCORPORATED 014 B00AA01 8-27154
015 A00AA01 STATE STREET BANK & TRUST
COMPANY 015 B00AA01 C
015 C01AA01 NORTH QUINCY
015 C02AA01 MA
015 C03AA01 02171
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 71
019 C00AA00 PRUDENTIAL
020 A000001 MERRILL LYNCH, PIERCE, FENNER & SMITH,
INC. 020 B000001 13-5674085
020 C000001 17
020 A000002 WHEAT, FIRST SECURITIES, INC.
020 B000002 54-0796506
020 C000002 12
020 A000003 GOLDMAN SACHS & CO.
020 B000003 13-5108880
020 C000003 3
020 A000004 BEAR, STEARNS & CO. INC.
020 B000004 13-3299429
020 C000004 1
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 33
022 A000001 GOLDMAN SACHS & CO.
022 B000001 13-5108880
022 C000001 301341
022 D000001 313850
022 A000002 SMITH BARNEY SHEARSON, INC.
022 B000002 13-1912900
022 C000002 85435
022 D000002 110474
022 A000003 MERRILL LYNCH, PIERCE, FENNER & SMITH
INC. 022 B000003 13-5674085
022 C000003 88734
022 D000003 82243
022 A000004 GREENWICH SECURITIES, INC.
<PAGE> PAGE 4
022 B000004 13-2697091
022 C000004 71452
022 D000004 96988
022 A000005 MORGAN (J.P.) SECURITIES
INC. 022 B000005 13-3224016
022 C000005 85527
022 D000005 71007
022 A000006 CS FIRST BOSTON
022 B000006 13-5659485
022 C000006 61178
022 D000006 82749
022 A000007 LEHMAN BROTHERS INC
022 B000007 13-2518466
022 C000007 72476
022 D000007 64937
022 A000008 WILLIAM E. SIMON
022 B000008 22-3017217
022 C000008 58247
022 D000008 64285
022 A000009 MORGAN STANLEY & CO. INC.
022 B000009 13-2655998
022 C000009 33531
022 D000009 54949
022 A000010 PAINEWEBBER INC.
022 B000010 13-2638166
022 C000010 51283
022 D000010 26900
023 C000000 1263797
023 D000000 1516253
024 00AA00 N
025 D00AA01 0
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
025 D00AA08 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
049 00AA00 N
050 00AA00 N
051 00AA00 N
<PAGE> PAGE 5
052 00AA00 N
053 A00AA00 N
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 N
054 N00AA00 N
054 O00AA00 N
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 Y
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 Y
077 P000000 Y
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 ICI MUTUAL INSURANCE
COMPANY 080 C00AA00 65000
081 A00AA00 Y
081 B00AA00 86
082 A00AA00 N
082 B00AA00 0
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
<PAGE> PAGE 6
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
028 A010100 8902
028 A020100 2602
028 A030100 0
028 A040100 37945
028 B010100 12993
028 B020100 2471
028 B030100 0
028 B040100 36100
028 C010100 14056
028 C020100 2674
028 C030100 0
028 C040100 16369
028 D010100 12278
028 D020100 2626
028 D030100 0
028 D040100 15317
028 E010100 13249
028 E020100 2275
028 E030100 0
028 E040100 17880
028 F010100 10378
028 F020100 2577
028 F030100 0
028 F040100 14182
028 G010100 71856
028 G020100 15225
028 G030100 0
028 G040100 137793
028 H000100 13265
029 000100 Y
030 A000100 164
030 B000100 3.00
030 C000100 0.00
031 A000100 4
031 B000100 0
032 000100 0
033 000100 160
034 000100 Y
035 000100 2350
036 A000100 N
036 B000100 0
<PAGE> PAGE 7
037 000100 N
038 000100 0
039 000100 N
040 000100 Y
041 000100 Y
042 A000100 0
042 B000100 0
042 C000100 0
042 D000100 100
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 0
043 000100 5194
044 000100 0
045 000100 Y
046 000100 N
047 000100 Y
048 000100 0.500
048 A010100 0
048 A020100 0.000
048 B010100 0
048 B020100 0.000
048 C010100 0
048 C020100 0.000
048 D010100 0
048 D020100 0.000
048 E010100 0
048 E020100 0.000
048 F010100 0
048 F020100 0.000
048 G010100 0
048 G020100 0.000
048 H010100 0
048 H020100 0.000
048 I010100 0
048 I020100 0.000
048 J010100 0
048 J020100 0.000
048 K010100 0
048 K020100 0.000
055 A000100 N
055 B000100 N
056 000100 N
057 000100 N
058 A000100 N
058 B000100 N
058 C000100 N
058 D000100 N
058 E000100 N
059 000100 Y
<PAGE> PAGE 8
060 A000100 Y
060 B000100 Y
061 000100 1000
062 A000100 Y
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
062 E000100 0.9
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 97.9
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
063 A000100 0
063 B000100 20.6
064 A000100 N
064 B000100 Y
065 000100 N
066 A000100 N
067 000100 N
068 A000100 N
068 B000100 N
069 000100 N
070 A010100 Y
070 A020100 N
070 B010100 N
070 B020100 N
070 C010100 Y
070 C020100 Y
070 D010100 N
070 D020100 N
070 E010100 Y
070 E020100 Y
070 F010100 N
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 N
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 N
<PAGE> PAGE 9
070 K010100 N
070 K020100 N
070 L010100 N
070 L020100 N
070 M010100 N
070 M020100 N
070 N010100 Y
070 N020100 N
070 O010100 Y
070 O020100 Y
070 P010100 Y
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 408921
071 B000100 502350
071 C000100 1058940
071 D000100 39
072 A000100 12
072 B000100 81396
072 C000100 0
072 D000100 0
072 E000100 0
072 F000100 5279
072 G000100 0
072 H000100 0
072 I000100 530
072 J000100 216
072 K000100 0
072 L000100 255
072 M000100 15
072 N000100 50
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 22
072 S000100 40
072 T000100 5194
072 U000100 0
072 V000100 0
072 W000100 44
072 X000100 11645
072 Y000100 0
072 Z000100 69751
072AA000100 15484
072BB000100 30968
072CC010100 10858
072CC020100 0
072DD010100 65277
<PAGE> PAGE 10
072DD020100 4524
072EE000100 0
073 A010100 0.6800
073 A020100 1.2100
073 B000100 0.0000
073 C000100 0.0000
074 A000100 81
074 B000100 0
074 C000100 9500
074 D000100 1030957
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 11109
074 K000100 63
074 L000100 23826
074 M000100 34
074 N000100 1075570
074 O000100 17242
074 P000100 792
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 4102
074 S000100 0
074 T000100 1053434
074 U010100 87196
074 U020100 11070
074 V010100 0.00
074 V020100 0.00
074 W000100 0.0000
074 X000100 36617
074 Y000100 0
075 A000100 0
075 B000100 1090724
076 000100 0.00
028 A010200 2427
028 A020200 1624
028 A030200 0
028 A040200 32094
028 B010200 5632
028 B020200 1553
028 B030200 0
028 B040200 28849
028 C010200 2309
028 C020200 1624
028 C030200 0
028 C040200 13405
<PAGE> PAGE 11
028 D010200 3782
028 D020200 1556
028 D030200 0
028 D040200 9965
028 E010200 6060
028 E020200 1372
028 E030200 0
028 E040200 12279
028 F010200 2155
028 F020200 1535
028 F030200 0
028 F040200 9776
028 G010200 22365
028 G020200 9264
028 G030200 0
028 G040200 106368
028 H000200 5008
029 000200 Y
030 A000200 57
030 B000200 3.00
030 C000200 0.00
031 A000200 2
031 B000200 0
032 000200 0
033 000200 54
034 000200 Y
035 000200 1588
036 A000200 N
036 B000200 0
037 000200 N
038 000200 0
039 000200 N
040 000200 Y
041 000200 Y
042 A000200 0
042 B000200 0
042 C000200 0
042 D000200 100
042 E000200 0
042 F000200 0
042 G000200 0
042 H000200 0
043 000200 3342
044 000200 0
045 000200 Y
046 000200 N
047 000200 Y
048 000200 0.500
048 A010200 0
048 A020200 0.000
048 B010200 0
<PAGE> PAGE 12
048 B020200 0.000
048 C010200 0
048 C020200 0.000
048 D010200 0
048 D020200 0.000
048 E010200 0
048 E020200 0.000
048 F010200 0
048 F020200 0.000
048 G010200 0
048 G020200 0.000
048 H010200 0
048 H020200 0.000
048 I010200 0
048 I020200 0.000
048 J010200 0
048 J020200 0.000
048 K010200 0
048 K020200 0.000
055 A000200 N
055 B000200 N
056 000200 N
057 000200 N
058 A000200 N
058 B000200 N
058 C000200 N
058 D000200 N
058 E000200 N
059 000200 Y
060 A000200 Y
060 B000200 Y
061 000200 1000
062 A000200 Y
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 1.7
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 95.7
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
063 A000200 0
<PAGE> PAGE 13
063 B000200 17.8
064 A000200 N
064 B000200 N
066 A000200 N
067 000200 N
068 A000200 N
068 B000200 N
069 000200 N
070 A010200 N
070 A020200 N
070 B010200 N
070 B020200 N
070 C010200 Y
070 C020200 N
070 D010200 N
070 D020200 N
070 E010200 Y
070 E020200 Y
070 F010200 N
070 F020200 N
070 G010200 Y
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 N
070 K010200 N
070 K020200 N
070 L010200 N
070 L020200 N
070 M010200 N
070 M020200 N
070 N010200 Y
070 N020200 N
070 O010200 Y
070 O020200 Y
070 P010200 Y
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 418558
071 B000200 543027
071 C000200 654539
071 D000200 64
072 A000200 12
072 B000200 42884
072 C000200 0
<PAGE> PAGE 14
072 D000200 0
072 E000200 0
072 F000200 3392
072 G000200 0
072 H000200 0
072 I000200 570
072 J000200 104
072 K000200 0
072 L000200 208
072 M000200 16
072 N000200 68
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 16
072 S000200 36
072 T000200 3342
072 U000200 0
072 V000200 0
072 W000200 35
072 X000200 7787
072 Y000200 0
072 Z000200 35097
072AA000200 15963
072BB000200 26070
072CC010200 14364
072CC020200 0
072DD010200 32999
072DD020200 2160
072EE000200 0
073 A010200 0.5400
073 A020200 0.9700
073 B000200 0.0000
073 C000200 0.0000
074 A000200 28
074 B000200 0
074 C000200 10900
074 D000200 616151
074 E000200 0
074 F000200 0
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 10251
074 K000200 0
074 L000200 24151
074 M000200 23
074 N000200 661504
074 O000200 14457
074 P000200 486
074 Q000200 0
<PAGE> PAGE 15
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 2588
074 S000200 0
074 T000200 643973
074 U010200 52382
074 U020200 7049145
074 V010200 10.84
074 V020200 10.84
074 W000200 0.0000
074 X000200 2640
074 Y000200 0
075 A000200 0
075 B000200 699933
076 000200 0.00
028 A010300 1458
028 A020300 167
028 A030300 0
028 A040300 4162
028 B010300 807
028 B020300 182
028 B030300 0
028 B040300 6650
028 C010300 553
028 C020300 151
028 C030300 0
028 C040300 1161
028 D010300 607
028 D020300 146
028 D030300 0
028 D040300 1834
028 E010300 469
028 E020300 127
028 E030300 0
028 E040300 1094
028 F010300 787
028 F020300 139
028 F030300 0
028 F040300 1062
028 G010300 4681
028 G020300 912
028 G030300 0
028 G040300 15963
028 H000300 280
029 000300 Y
030 A000300 40
030 B000300 3.00
030 C000300 0.00
031 A000300 1
031 B000300 0
<PAGE> PAGE 16
032 000300 0
033 000300 39
034 000300 Y
035 000300 235
036 A000300 N
036 B000300 0
037 000300 N
038 000300 0
039 000300 N
040 000300 Y
041 000300 Y
042 A000300 0
042 B000300 0
042 C000300 0
042 D000300 100
042 E000300 0
042 F000300 0
042 G000300 0
042 H000300 0
043 000300 309
044 000300 0
045 000300 Y
046 000300 N
047 000300 Y
048 000300 0.500
048 A010300 0
048 A020300 0.000
048 B010300 0
048 B020300 0.000
048 C010300 0
048 C020300 0.000
048 D010300 0
048 D020300 0.000
048 E010300 0
048 E020300 0.000
048 F010300 0
048 F020300 0.000
048 G010300 0
048 G020300 0.000
048 H010300 0
048 H020300 0.000
048 I010300 0
048 I020300 0.000
048 J010300 0
048 J020300 0.000
048 K010300 0
048 K020300 0.000
055 A000300 N
055 B000300 N
056 000300 N
057 000300 N
<PAGE> PAGE 17
058 A000300 N
058 B000300 N
058 C000300 N
058 D000300 N
058 E000300 N
059 000300 Y
060 A000300 Y
060 B000300 Y
061 000300 1000
062 A000300 Y
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 0.0
062 F000300 0.0
062 G000300 0.0
062 H000300 0.0
062 I000300 0.0
062 J000300 0.0
062 K000300 0.0
062 L000300 0.0
062 M000300 0.0
062 N000300 0.0
062 O000300 96.2
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.0
063 A000300 0
063 B000300 9.6
064 A000300 N
064 B000300 N
066 A000300 N
067 000300 N
068 A000300 N
068 B000300 N
069 000300 N
070 A010300 Y
070 A020300 N
070 B010300 N
070 B020300 N
070 C010300 Y
070 C020300 N
070 D010300 N
070 D020300 N
070 E010300 Y
070 E020300 Y
070 F010300 N
070 F020300 N
070 G010300 Y
070 G020300 N
070 H010300 N
<PAGE> PAGE 18
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 N
070 K010300 N
070 K020300 N
070 L010300 N
070 L020300 N
070 M010300 N
070 M020300 N
070 N010300 Y
070 N020300 N
070 O010300 Y
070 O020300 Y
070 P010300 Y
070 P020300 N
070 Q010300 N
070 Q020300 N
070 R010300 N
070 R020300 N
071 A000300 19658
071 B000300 26833
071 C000300 65004
071 D000300 30
072 A000300 12
072 B000300 3928
072 C000300 0
072 D000300 0
072 E000300 0
072 F000300 329
072 G000300 0
072 H000300 0
072 I000300 54
072 J000300 93
072 K000300 0
072 L000300 87
072 M000300 17
072 N000300 17
072 O000300 0
072 P000300 0
072 Q000300 0
072 R000300 12
072 S000300 23
072 T000300 309
072 U000300 0
072 V000300 0
072 W000300 7
072 X000300 948
072 Y000300 0
072 Z000300 2980
<PAGE> PAGE 19
072AA000300 680
072BB000300 1339
072CC010300 29
072CC020300 0
072DD010300 2645
072DD020300 374
072EE000300 1242
073 A010300 0.4600
073 A020300 0.8800
073 B000300 0.1800
073 C000300 0.0000
074 A000300 53
074 B000300 0
074 C000300 0
074 D000300 59384
074 E000300 0
074 F000300 0
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 1082
074 K000300 1
074 L000300 1356
074 M000300 2
074 N000300 61878
074 O000300 0
074 P000300 45
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 120
074 S000300 0
074 T000300 61713
074 U010300 4884
074 U020300 1022
074 V010300 10.45
074 V020300 10.45
074 W000300 0.0000
074 X000300 2823
074 Y000300 0
075 A000300 0
075 B000300 67944
076 000300 0.00
SIGNATURE SUSAN C. COTE'
TITLE TREASURER
For the year ended (a) April 30, 1995
File number (c) 811-4930
SUB-ITEM 77J
Restatement of Capital Share Account
Reclassification of Capital Accounts - The Fund accounts and reports for
distributions to shareholders in accordance with Statement of Position 93-2:
Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies.
For the fiscal year ended April 30, 1995, the effect of applying this
statement was to increase undistributed net investment income and increase
accumulated realized losses by $ 49,874, $ 62,609, $39,642 for the High Yield
Series, Insured Series, and Modified Term Series respectively. Net investment
income, net realized gains and net assets were not affected by this change.
Board of Directors or Trustees of:
Prudential Adjustable Rate Securities Fund
Prudential IncomeVertible Fund
The BlackRock Government Income Trust
Prudential Intermediate Global Income Fund
Prudential California Municipal Fund (2 Portfolios)
Prudential Multi-Sector Fund
Prudential Equity Fund
Prudential Municipal Bond Fund (3 Portfolios)
Prudential Equity Income Fund
Prudential Municipal Series Fund (12 Portfolios)
Prudential FlexiFund (2 Portfolios)
Prudential National Municipals Fund
Prudential GNMA Fund
Prudential Pacific Growth Fund
Prudential Global Fund
Prudential Short-Term Global Income Fund (2 Portfolios)
Prudential Global Genesis Fund
Prudential Structured Maturity Fund
Prudential Global Natural Resources Fund
Prudential U.S. Government Fund
Prudential Government Plus Fund
Prudential Utility Fund
Prudential Growth Fund
Global Utility Fund, Inc.
Prudential Growth Opportunity Fund
Nicholas-Applegate Fund, Inc.
Prudential High Yield Fund
We have examined the accompanying description of the
Prudential Dual Pricing
Worksheet (the "Worksheet") application of State Street Bank
and Trust Company
("State Street"), custodian and recordkeeper for the
Prudential Mutual Funds
(the "Funds"). Our examination included procedures to
obtain reasonable
assurance about whether (1) the accompanying description
presents fairly, in
all material respects, the aspects of State Street's
policies and procedures
that may be relevant to a Fund's internal control structure
relating to the
Worksheet, (2) the control structure policies and procedures
included in the
description were suitably designed to achieve the control
objectives specified
in the description, if those policies and procedures were
complied with
satisfactorily, and (3) such policies and procedures had
been placed in
operation as of June 30, 1994. The control objectives were
specified by
Prudential Mutual Fund Management. Our examination was
performed in accordance
with standards established by the American Institute of
Certified Public
Accountants and included those procedures we considered
necessary in the
circumstances to obtain a reasonable basis for rendering our
opinion.
In our opinion, the accompanying description of the
aforementioned application
presents fairly, in all material respects, the relevant
aspects of State
Street's policies and procedures that had been placed in
operation as of
June 30, 1994. Also, in our opinion, the policies and
procedures, as
described, are suitably designed to provide reasonable
assurance that the
specified control objectives would be achieved if the
described policies and
procedures were complied with satisfactorily.
In addition to the procedures we considered necessary to
render our opinion as
expressed in the previous paragraph, we applied tests to
specific policies and
procedures, listed in Section I, to obtain evidence about
their effectiveness
in meeting the control objectives, described in Section I
during the period
from July 1, 1993 to June 30, 1994. The nature, timing,
extent, and results of
the tests are listed in Section II. In our opinion the
policies and procedures
that were tested, as described in Section II, were operating
with sufficient
effectiveness to provide reasonable, but not absolute,
assurance that the
control objectives specified in Section I were achieved
during the period from
July 1, 1993 to June 30, 1994.
The relative effectiveness and significance of specific
policies and procedures
at State Street, and their effect on assessments of control
risk on the Funds
are dependent on their interaction with the policies,
procedures, and other
factors present at individual Funds. We have performed no
procedures to
evaluate the effectiveness of policies and procedures at
individual Funds in
connection with this report.
The description of policies and procedures at State Street
is as of June 30,
1994, and information about tests of the operating
effectiveness of specified
policies and procedures covers the period from July 1, 1993
to June 30, 1994.
Any projection of such information to the future is subject
to the risk that,
because of change, the description may no longer portray the
system in
existence. The potential effectiveness of specified
policies and procedures at
State Street is subject to inherent limitations and,
accordingly, errors or
irregularities may occur and not be detected. Furthermore,
the projection of
any conclusions, based on our findings, to future periods is
subject to the
risk that changes may alter the validity of such
conclusions.
This report is intended solely for use by the management and
Boards of
Directors/Trustees of the Funds, the independent auditors of
the Funds and the
Securities and Exchange Commission.
July 28, 1994
SECTION I
Policies and Procedures Placed in
Operation
Prudential Dual Pricing Worksheet
Effective January 22, 1990, the Funds, offered by Prudential
Securities
Incorporated (formerly Prudential-Bache Securities, Inc.)
and Prudential Mutual
Fund Distributors, Inc., adopted a dual pricing system. The
dual pricing
system consists of two classes of shares (Class A and Class
B for all funds
except the Florida Series of Prudential Municipal Series
Fund. This Fund
offers Class A and Class D shares.) for the Funds. The
Class A shares are
subject to a front-end sales load and the Class B and Class
D shares are
subject to a contingent deferred sales charge. Each of the
classes of shares
represent interests in the same portfolio of investments of
the respective Fund
and are identical in all respects, except that each class is
subject to
different distribution expenses and has exclusive voting
rights with respect to
the Rule 12b-1 distribution plan pursuant to which such
distribution expenses
are paid.
In order to allocate income and expenses between the two
classes of shares,
State Street Bank and Trust Company (the Funds' custodian
and recordkeeper)
utilizes the Prudential Dual Pricing Worksheet (the
"Worksheet") (see Exhibit
I). The Worksheet is a manual supplementary application
that extracts relevant
data from the Funds' primary accounting system, allocates
income and expenses
between the two classes of shares and computes the daily net
asset value and,
if applicable, the dividend/distribution for each class of
shares. Internal
accounting controls that are relevant to the Fund can be
divided into two
components - controls related to the mutual fund accounting
system resident at
State Street Bank and Trust Company (the "primary accounting
system") and
controls related to the Worksheet.
The spcific control objectives and policies and procedures
relating to the
Worksheet are described on pages 4, 5 and 6. A description
of the tests of the
policies and procedures designed to obtain evidence about
the operating
effectiveness of those policies and procedures in achieving
the specific
control objectives is included in Section II.
Control Objectives and Policies and
Procedures
Prudential Dual Pricing Worksheet
The Worksheet is a supplementary manual application to the
Funds' primary
accounting system. Certain data is extracted from the
primary accounting
system to allocate income and expenses and to calculate the
daily net asset
value and, if applicable, dividends/distributions for each
class of shares.
The primary accounting system includes the details of
transactions in
accordance with the Investment Company Act of 1940, as
amended.
The following represents the internal accounting control
objectives and
policies and procedures for the allocation of income and
expenses and the
computation of the net asset value and, if applicable, the
dividend/distribution for each class of shares utilizing the
Worksheet. It
does not cover the internal accounting control policies and
procedures
surrounding the processing of information into the Funds'
primary accounting
system.
CONTROL
POLICIES CONTROL
OBJECTIVES AND PROCEDURES
A. Capital share activity
as reported by the
1. Daily, the transfer
agent forwards
reports of
Fund's transfer agent is recorded for each
capital share activity
for each class which
class in an accurate and timely manner by includes a
summary of
subscriptions,
the Fund. redemptions,
exchanges and other
information (the
"Supersheet"). The
opening day's
balance for shares
outstanding
and current day
activity is recorded
on the Worksheet.
2. Estimated
interim share activity
for the current day
not recorded in the
Supersheet is
received via telefax from
the transfer agent
and is recorded for
each class on the
Worksheet.
3. A report of
outstanding shares
eligible for
dividends is received from
the transfer agent
and is recorded for
each class on the
Worksheet.
B. Net Asset Value
("NAV") and, if
applicable, 1.
The prior days
ending NAV per share
the dividend/distribution for each class
(unrounded) for each class is
agreed to the
are accurately computed on a daily basis. prior
day's Worksheet.
2. The daily net
capital stock
activity for each
class for the current
day is agreed to the
Supersheet as
described in Control
Procedures A.1, 2.
and 3., above.
CONTROL POLICIES
CONTROL OBJECTIVES AND PROCEDURES
3. Percentage
Assets by Class and
Percentage Dividend
Assets by Class are
calculated for each
class based upon
information from the
prior day
Worksheet, the
Supersheet and the
telefax from the
transfer agent.
4. Allocate investment
income between
classes based on the
appropriate asset
allocation
percentage for each class.
5. Agree composite
income accounts,
management fees,
other expenses,
realized gains and
losses, and
unrealized
appreciation/depreciation to
the primary
accounting system of the
Fund.
6. Allocate expenses
between classes as
follows:
a. Expenses
directly
attributable
to each
class (12b-1
distribution
expenses)
are calculated and
recorded
to that class.
b. Expenses
attributable to both
classes
are
allocated in accordance
with the
appropriate asset allocation
percentage
for each class.
7. Allocate realized
and unrealized
gains and losses
between the classes in
accordance with the
appropriate asset
allocation
percentage of each class.
8.Record
dividends/distributions to
shareholders of each
class in the
primary accounting
system.
9.Aggregate the net
assets for each class
and agree to the
total net assets per
the primary
accounting system.
10.For each class,
reconcile the current
day's NAV and, if
applicable, the
dividend/distribution to the previous
day's NAV and
dividend/distribution for
each class.
CONTROL POLICIES
CONTROL OBJECTIVES AND PROCEDURES
11.The above procedures
are reviewed by the
Fund supervisor or
manager.
SECTION II
Tests of Operating Effectiveness
Prudential Dual Pricing Worksheet
July 1, 1993 to June 30, 1994
We reviewed the methodology and procedures for calculating
the daily net asset
value and, if applicable, the dividends/distributions of the
two classes of
shares and the allocation of income and expenses between the
two classes of
shares.
The following are the detailed procedures which we performed
with respect to
the Worksheet. These procedures were performed for selected
days encompassing
all Funds subject to dual pricing during the year ended June
30, 1994, which we
believe is a representative sample, to test compliance with
the control
policies and procedures as described in Section I.
Prudential Mutual Fund Management, Inc. is the manager of
the Funds and has
represented to us that adequate facilities are in place to
ensure
implementation of the methodology and procedures for
calculating the net asset
value and dividends/distributions of the two classes of
shares and the
allocation of income and expenses between the two classes of
shares. Based on
our review of the description of the policies and procedures
of the Worksheet,
as described in Section I, and performance of tests of
operating effectiveness
as described in Section II, we concur with such
representation.
Agreed "Prior Day NAV Per Share" to the previous day's
Worksheet.
Agreed "Shares Outstanding Beginning of the Day" to the
previous day's
Worksheet and to the transfer agency records for each
class.
Recalculated "Activity/Estimate" by adding the
estimated interim share
activity reported via fax from the transfer agent and
the current day's
"Capital Stock Activity" reported on the Supersheet for
each class.
Recalculated "Current Shares Outstanding" by adding
"Shares Outstanding
Beginning of the Day" and "Activity/Estimate" for each
class.
Recalculated for each class "Adjusted Total Assets" by
multiplying "Prior
Day NAV Per Share" by "Current Shares Outstanding".
Recalculated "Percentage Assets-Class A/Front End" by
dividing "Adjusted
Total Assets-Class A/Front End" by "Adjusted Total
Assets Composite".
Recalculated "Percentage Assets-Class B(D)/Back End" by
dividing "Adjusted
Total Assets-Class B(D)/Back End" by "Adjusted Total
Assets Composite".
Agreed "Dividend Shares" to the transfer agency records
for each class.
Recalculated "Current Dividend Shares" by adding
"Dividend Shares
Beginning of Day" and "Activity/Estimate" for each
class.
Recalculated for each class "Adjusted Dividend Assets"
by multiplying
"Prior Day NAV Per Share" by "Current Dividend Shares".
Recalculated "Percentage Dividend Assets-Class A/Front
End" by dividing
"Adjusted Dividend Assets-Class A/Front End" by
"Adjusted Dividend Assets
Composite".
Recalculated "Percentage Dividend Assets-Class
B(D)/Back End" by dividing
"Adjusted Dividend Assets-Class B(D)/Back End" by
"Adjusted Dividend
Assets Composite".
Agreed composite total of each component of income to
the primary
accounting system.
Recalculated the allocation for each class of each
component of income for
daily dividend funds by multiplying the composite total
by "Percentage
Dividend Assets-Class A/Front End" and "Percentage
Dividend Assets-Class
B(D)/Back End," and for non-daily dividend funds by
multiplying the
composite total by "Percentage Assets-Class A/Front
End" and "Percentage
Assets-Class B(D)/Back End".
Recalculated "Daily Income," composite and for each
class, by totaling
each component of income.
Agreed composite total "Management Fee" and "Other
Fixed Expenses" to the
primary accounting system.
Recalculated the allocation for each class of
"Management Fee" and "Other
Fixed Expenses" for daily dividend funds by multiplying
the composite
total by "Percentage Dividend Assets-Class A/Front End"
and "Percentage
Dividend Assets-Class B(D)/Back End," and non-daily
dividend funds by
multiplying the composite total by "Percentage Assets-
Class A/Front End"
and "Percentage Assets-Class B(D)/Back End".
Agreed the "12b-1 Fee-Class A/Front End" and "12b-1 Fee-
Class B(D)/Back
End" to the respective "PC Expense Worksheet".
Recalculated "Daily Expense," composite and for each
class, by totaling
"Management Fee," "12b-1 Fee" and "Other Fixed
Expenses".
Recalculated "Daily Net Income" for each class by
subtracting "Daily
Expense" from "Daily Income".
Recalculated "Dividend Rate" for each class for daily
dividend funds by
dividing "Daily Net Income" by "Dividend Shares
Beginning of Day-Class
A/Front End" and "Dividend Shares Beginning of Day-
Class B(D)/Back End".
Agreed "Daily Income" and "Income Distribution" for
each class to the
primary accounting system.
Agreed the "Capital Gain Distribution" to the amount
recorded in the
primary accounting system.
Agreed composite total "Realized Gain/Loss" and
"Unrealized
Appreciation/Depreciation" to the primary accounting
system.
Recalculated the allocation for each class of "Realized
Gain/Loss" and
"Unrealized Appreciation/Depreciation" by multiplying
the composite amount
by the "Percentage Assets-Class A/Front End" and
"Percentage Assets-Class
B(D)/Back End".
Agreed "Prior Days Net Assets" to the previous day's
Worksheet.
Recalculated "Net Assets", composite and for each
class, by totaling
"Daily Net Income", "Income Distributed", "Capital
Stock Activity",
"Capital Gain Distribution", "Realized Gain/Loss",
"Unrealized
Appreciation/Depreciation", and "Prior Days Net
Assets".
Recalculated "NAV Per Share" dividing the "Net Assets-
Class A/Front End"
and "Net Assets - Class B(D)/Back End" by "Current
Shares Outstanding -
Class A/Front End" and "Current Shares Outstanding -
Class B(D)/Back End",
respectively.
Recalculated "Offering Price" for Class A shares by
applying the "Load"
percentage as stated in the fund's prospectus.
NSAR2.DOC - Windows - May 30, 1995
PRINT ON COMPAQ
The Board of Trustees of
Prudential Municipal BondFund:
In planning and performing our audit of the financial statements of
Prudential Municipal Bond Fund ("Fund") for the year ended April 30, 1995, we
considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to provide assurance on the
internal control structure.
The management of the Fund is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and
related costs of internal control structure policies and procedures. Two of
the objectives of an internal control structure are to provide management
with reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition and that transactions are
executed in accordance with management's authorization and recorded properly
to permit preparation of financial statements in conformity with generally
accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design
or operation of the specific internal control structure elements does not
reduce to a relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by employees in
the normal course of performing their assigned functions. However, we noted
no matters involving the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses as
defined above as of April 30, 1995.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
June 15, 1995
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND - MODIFIED TERM S
<SERIES>
<NUMBER> 001
<NAME> PRU MUNICIPAL BOND FUND - MODIFIED TERM (CLAS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1995
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 58,808,272
<INVESTMENTS-AT-VALUE> 59,383,776
<RECEIVABLES> 2,437,551
<ASSETS-OTHER> 57,024
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 61,878,351
<PAYABLE-FOR-SECURITIES> 75,213
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 89,661
<TOTAL-LIABILITIES> 164,874
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 62,108,600
<SHARES-COMMON-STOCK> 5,905,485
<SHARES-COMMON-PRIOR> 7,573,690
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (929,782)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 534,659
<NET-ASSETS> 61,713,477
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,927,905
<OTHER-INCOME> 0
<EXPENSES-NET> 948,400
<NET-INVESTMENT-INCOME> 2,979,505
<REALIZED-GAINS-CURRENT> (658,871)
<APPREC-INCREASE-CURRENT> 28,699
<NET-CHANGE-FROM-OPS> 2,349,333
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,979,505)
<DISTRIBUTIONS-OF-GAINS> (1,242,493)
<DISTRIBUTIONS-OTHER> (39,642)
<NUMBER-OF-SHARES-SOLD> 13,939,416
<NUMBER-OF-SHARES-REDEEMED> (24,099,780)
<SHARES-REINVESTED> 2,761,015
<NET-CHANGE-IN-ASSETS> (9,311,656)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,011,224
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 329,452
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 958,633
<AVERAGE-NET-ASSETS> 7,742,000
<PER-SHARE-NAV-BEGIN> 10.67
<PER-SHARE-NII> 0.51
<PER-SHARE-GAIN-APPREC> (0.03)
<PER-SHARE-DIVIDEND> (0.51)
<PER-SHARE-DISTRIBUTIONS> (0.19)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.45
<EXPENSE-RATIO> 1.05
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND - MODIFIED TERM S
<SERIES>
<NUMBER> 002
<NAME> PRU MUNICIPAL BOND FUND - MODIFIED TERM (CLAS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1995
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 58,808,272
<INVESTMENTS-AT-VALUE> 59,383,776
<RECEIVABLES> 2,437,551
<ASSETS-OTHER> 57,024
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 61,878,351
<PAYABLE-FOR-SECURITIES> 75,213
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 89,661
<TOTAL-LIABILITIES> 164,874
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 62,108,600
<SHARES-COMMON-STOCK> 5,905,485
<SHARES-COMMON-PRIOR> 7,573,690
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (929,782)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 534,659
<NET-ASSETS> 61,713,477
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,927,905
<OTHER-INCOME> 0
<EXPENSES-NET> 948,400
<NET-INVESTMENT-INCOME> 2,979,505
<REALIZED-GAINS-CURRENT> (658,871)
<APPREC-INCREASE-CURRENT> 28,699
<NET-CHANGE-FROM-OPS> 2,349,333
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,979,505)
<DISTRIBUTIONS-OF-GAINS> (1,242,493)
<DISTRIBUTIONS-OTHER> (39,642)
<NUMBER-OF-SHARES-SOLD> 13,939,416
<NUMBER-OF-SHARES-REDEEMED> (24,099,780)
<SHARES-REINVESTED> 2,761,015
<NET-CHANGE-IN-ASSETS> (9,311,656)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,011,224
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 329,452
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 958,633
<AVERAGE-NET-ASSETS> 60,174,000
<PER-SHARE-NAV-BEGIN> 10.68
<PER-SHARE-NII> 0.45
<PER-SHARE-GAIN-APPREC> (0.04)
<PER-SHARE-DIVIDEND> (0.45)
<PER-SHARE-DISTRIBUTIONS> (0.19)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.45
<EXPENSE-RATIO> 1.45
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND - MODIFIED TERM S
<SERIES>
<NUMBER> 003
<NAME> PRU MUNICIPAL BOND FUND - MODIFIED TERM (CLAS
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1995
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 58,808,272
<INVESTMENTS-AT-VALUE> 59,383,776
<RECEIVABLES> 2,437,551
<ASSETS-OTHER> 57,024
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 61,878,351
<PAYABLE-FOR-SECURITIES> 75,213
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 89,661
<TOTAL-LIABILITIES> 164,874
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 62,108,600
<SHARES-COMMON-STOCK> 5,905,485
<SHARES-COMMON-PRIOR> 7,573,690
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (929,782)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 534,659
<NET-ASSETS> 61,713,477
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,927,905
<OTHER-INCOME> 0
<EXPENSES-NET> 948,400
<NET-INVESTMENT-INCOME> 2,979,505
<REALIZED-GAINS-CURRENT> (658,871)
<APPREC-INCREASE-CURRENT> 28,699
<NET-CHANGE-FROM-OPS> 2,349,333
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2,979,505)
<DISTRIBUTIONS-OF-GAINS> (1,242,493)
<DISTRIBUTIONS-OTHER> (39,642)
<NUMBER-OF-SHARES-SOLD> 13,939,416
<NUMBER-OF-SHARES-REDEEMED> (24,099,780)
<SHARES-REINVESTED> 2,761,015
<NET-CHANGE-IN-ASSETS> (9,311,656)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 1,011,224
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 329,452
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 958,633
<AVERAGE-NET-ASSETS> 28,000
<PER-SHARE-NAV-BEGIN> 10.54
<PER-SHARE-NII> 0.36
<PER-SHARE-GAIN-APPREC> (0.09)
<PER-SHARE-DIVIDEND> (0.35)
<PER-SHARE-DISTRIBUTIONS> (0.01)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.45
<EXPENSE-RATIO> 1.81
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND - HIGH YIELD SERI
<SERIES>
<NUMBER> 004
<NAME> PRU MUNICIPAL BOND FUND - HIGH YIELD (CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1995
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 1,017,378,109
<INVESTMENTS-AT-VALUE> 1,040,456,770
<RECEIVABLES> 34,935,079
<ASSETS-OTHER> 177,804
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,075,569,653
<PAYABLE-FOR-SECURITIES> 17,241,836
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,894,093
<TOTAL-LIABILITIES> 22,135,929
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,052,050,835
<SHARES-COMMON-STOCK> 98,265,943
<SHARES-COMMON-PRIOR> 107,478,728
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (21,832,397)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 23,215,286
<NET-ASSETS> 1,053,433,724
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 81,396,363
<OTHER-INCOME> 0
<EXPENSES-NET> 11,644,844
<NET-INVESTMENT-INCOME> 69,751,519
<REALIZED-GAINS-CURRENT> (15,484,052)
<APPREC-INCREASE-CURRENT> 10,858,413
<NET-CHANGE-FROM-OPS> 65,125,880
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (69,751,519)
<DISTRIBUTIONS-OF-GAINS> (49,874)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 135,404,221
<NUMBER-OF-SHARES-REDEEMED> (262,484,590)
<SHARES-REINVESTED> 31,059,195
<NET-CHANGE-IN-ASSETS> (100,696,687)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (4,895,320)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,279,570
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,817,122
<AVERAGE-NET-ASSETS> 65,207,000
<PER-SHARE-NAV-BEGIN> 10.74
<PER-SHARE-NII> 0.72
<PER-SHARE-GAIN-APPREC> (0.02)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.72)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.72
<EXPENSE-RATIO> 0.69
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND - HIGH YIELD SERI
<SERIES>
<NUMBER> 005
<NAME> PRU MUNICIPAL BOND FUND - HIGH YIELD (CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1995
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 1,017,378,109
<INVESTMENTS-AT-VALUE> 1,040,456,770
<RECEIVABLES> 34,935,079
<ASSETS-OTHER> 177,804
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,075,569,653
<PAYABLE-FOR-SECURITIES> 17,241,836
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,894,093
<TOTAL-LIABILITIES> 22,135,929
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,052,050,835
<SHARES-COMMON-STOCK> 98,265,943
<SHARES-COMMON-PRIOR> 107,478,728
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (21,832,397)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 23,215,286
<NET-ASSETS> 1,053,433,724
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 81,396,363
<OTHER-INCOME> 0
<EXPENSES-NET> 11,644,844
<NET-INVESTMENT-INCOME> 69,751,519
<REALIZED-GAINS-CURRENT> (15,484,052)
<APPREC-INCREASE-CURRENT> 10,858,413
<NET-CHANGE-FROM-OPS> 65,125,880
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (69,751,519)
<DISTRIBUTIONS-OF-GAINS> (49,874)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 135,404,221
<NUMBER-OF-SHARES-REDEEMED> (262,484,590)
<SHARES-REINVESTED> 31,059,195
<NET-CHANGE-IN-ASSETS> (100,696,687)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (4,895,320)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,279,570
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,817,122
<AVERAGE-NET-ASSETS> 1,024,132,000
<PER-SHARE-NAV-BEGIN> 10.74
<PER-SHARE-NII> 0.68
<PER-SHARE-GAIN-APPREC> (0.02)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.68)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.72
<EXPENSE-RATIO> 1.09
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND - HIGH YIELD SERI
<SERIES>
<NUMBER> 006
<NAME> PRU MUNICIPAL BOND FUND - HIGH YIELD (CLASS C
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1995
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 1,017,378,109
<INVESTMENTS-AT-VALUE> 1,040,456,770
<RECEIVABLES> 34,935,079
<ASSETS-OTHER> 177,804
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,075,569,653
<PAYABLE-FOR-SECURITIES> 17,241,836
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,894,093
<TOTAL-LIABILITIES> 22,135,929
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,052,050,835
<SHARES-COMMON-STOCK> 98,265,943
<SHARES-COMMON-PRIOR> 107,478,728
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (21,832,397)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 23,215,286
<NET-ASSETS> 1,053,433,724
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 81,396,363
<OTHER-INCOME> 0
<EXPENSES-NET> 11,644,844
<NET-INVESTMENT-INCOME> 69,751,519
<REALIZED-GAINS-CURRENT> (15,484,052)
<APPREC-INCREASE-CURRENT> 10,858,413
<NET-CHANGE-FROM-OPS> 65,125,880
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (69,751,519)
<DISTRIBUTIONS-OF-GAINS> (49,874)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 135,404,221
<NUMBER-OF-SHARES-REDEEMED> (262,484,590)
<SHARES-REINVESTED> 31,059,195
<NET-CHANGE-IN-ASSETS> (100,696,687)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (4,895,320)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,279,570
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 11,817,122
<AVERAGE-NET-ASSETS> 1,385,000
<PER-SHARE-NAV-BEGIN> 10.79
<PER-SHARE-NII> 0.49
<PER-SHARE-GAIN-APPREC> (0.07)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.49)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.72
<EXPENSE-RATIO> 1.34
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND - INSURED SERIES
<SERIES>
<NUMBER> 007
<NAME> PRU MUNICIPAL BOND FUND - INSURED (CLASS A)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1995
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 603,442,884
<INVESTMENTS-AT-VALUE> 627,050,937
<RECEIVABLES> 34,370,897
<ASSETS-OTHER> 81,740
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 661,503,574
<PAYABLE-FOR-SECURITIES> 14,456,616
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,073,962
<TOTAL-LIABILITIES> 17,530,578
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 635,308,849
<SHARES-COMMON-STOCK> 59,430,830
<SHARES-COMMON-PRIOR> 71,970,388
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (15,065,062)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 23,729,209
<NET-ASSETS> 643,972,996
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 42,883,847
<OTHER-INCOME> 0
<EXPENSES-NET> 7,786,553
<NET-INVESTMENT-INCOME> 35,097,294
<REALIZED-GAINS-CURRENT> (10,107,133)
<APPREC-INCREASE-CURRENT> 14,364,251
<NET-CHANGE-FROM-OPS> 39,354,412
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (35,097,294)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> (62,609)
<NUMBER-OF-SHARES-SOLD> 46,070,613
<NUMBER-OF-SHARES-REDEEMED> (196,745,726)
<SHARES-REINVESTED> 19,337,321
<NET-CHANGE-IN-ASSETS> (127,143,283)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (4,895,320)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,392,455
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,893,476
<AVERAGE-NET-ASSETS> 39,471,000
<PER-SHARE-NAV-BEGIN> 10.71
<PER-SHARE-NII> 0.58
<PER-SHARE-GAIN-APPREC> 0.12
<PER-SHARE-DIVIDEND> (0.58)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.83
<EXPENSE-RATIO> 0.74
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND - INSURED SERIES
<SERIES>
<NUMBER> 008
<NAME> PRU MUNICIPAL BOND FUND - INSURED (CLASS B)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1995
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 603,442,884
<INVESTMENTS-AT-VALUE> 627,050,937
<RECEIVABLES> 34,370,897
<ASSETS-OTHER> 81,740
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 661,503,574
<PAYABLE-FOR-SECURITIES> 14,456,616
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,073,962
<TOTAL-LIABILITIES> 17,530,578
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 635,308,849
<SHARES-COMMON-STOCK> 59,430,830
<SHARES-COMMON-PRIOR> 71,970,388
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (15,065,062)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 23,729,209
<NET-ASSETS> 643,972,996
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 42,883,847
<OTHER-INCOME> 0
<EXPENSES-NET> 7,786,553
<NET-INVESTMENT-INCOME> 35,097,294
<REALIZED-GAINS-CURRENT> (10,107,133)
<APPREC-INCREASE-CURRENT> 14,364,251
<NET-CHANGE-FROM-OPS> 39,354,412
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (35,097,294)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> (62,609)
<NUMBER-OF-SHARES-SOLD> 46,070,613
<NUMBER-OF-SHARES-REDEEMED> (196,745,726)
<SHARES-REINVESTED> 19,337,321
<NET-CHANGE-IN-ASSETS> (127,143,283)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (4,895,320)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,392,455
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,893,476
<AVERAGE-NET-ASSETS> 660,237,000
<PER-SHARE-NAV-BEGIN> 10.71
<PER-SHARE-NII> 0.54
<PER-SHARE-GAIN-APPREC> 0.13
<PER-SHARE-DIVIDEND> (0.54)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.84
<EXPENSE-RATIO> 1.14
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND - INSURED SERIES
<SERIES>
<NUMBER> 009
<NAME> PRU MUNICIPAL BOND FUND - INSURED (CLASS C)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1995
<PERIOD-END> APR-30-1995
<INVESTMENTS-AT-COST> 603,442,884
<INVESTMENTS-AT-VALUE> 627,050,937
<RECEIVABLES> 34,370,897
<ASSETS-OTHER> 81,740
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 661,503,574
<PAYABLE-FOR-SECURITIES> 14,456,616
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,073,962
<TOTAL-LIABILITIES> 17,530,578
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 635,308,849
<SHARES-COMMON-STOCK> 59,430,830
<SHARES-COMMON-PRIOR> 71,970,388
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (15,065,062)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 23,729,209
<NET-ASSETS> 643,972,996
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 42,883,847
<OTHER-INCOME> 0
<EXPENSES-NET> 7,786,553
<NET-INVESTMENT-INCOME> 35,097,294
<REALIZED-GAINS-CURRENT> (10,107,133)
<APPREC-INCREASE-CURRENT> 14,364,251
<NET-CHANGE-FROM-OPS> 39,354,412
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (35,097,294)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> (62,609)
<NUMBER-OF-SHARES-SOLD> 46,070,613
<NUMBER-OF-SHARES-REDEEMED> (196,745,726)
<SHARES-REINVESTED> 19,337,321
<NET-CHANGE-IN-ASSETS> (127,143,283)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (4,895,320)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,392,455
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,893,476
<AVERAGE-NET-ASSETS> 224,000
<PER-SHARE-NAV-BEGIN> 10.79
<PER-SHARE-NII> 0.39
<PER-SHARE-GAIN-APPREC> 0.05
<PER-SHARE-DIVIDEND> (0.39)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.84
<EXPENSE-RATIO> 1.39
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
