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Prudential Municipal Bond Fund
(Insured Series)
(Intermediate Series)
Supplement dated October 15, 1997 to
Prospectus dated July 2, 1997
HOW THE FUND IS MANAGED--MANAGER
Insured Series
The current portfolio manager of the Series is Christian Smith. Mr. Smith
has responsibility for the day-to-day management of the Series' portfolio. He
has managed the portfolio since October 1997 and has been employed by PIC in
various capacities since 1988.
Intermediate Series
The current portfolio managers of the Series are Peter Allegrini and Scott
Diamond, who share responsibility for the day-to-day management of the Series'
portfolio. They have managed the portfolio since October 1997. From 1982 to
1986, Mr. Allegrini was employed by Fidelity Investments as a senior bond
analyst and, from 1986 to 1994, he was a portfolio manager, most recently of
Fidelity Advisor High Income Municipal Fund and has been employed by PIC since
1994. Scott Diamond has been employed by PIC in various capacities since 1993.
Shareholder Guide--Alternative Purchase Plan
PruArray Savings Program. Class A shares are also offered at net asset value
to employees of companies that enter into a written agreement with Prudential
Retirement Services to participate in the PruArry Savings Program. Under this
Program, a limited number of Prudential Mutual Funds are available for purchase
at net asset value by Savings Accumulation Plans of the company's employees. The
Program is available only to employees who open a Savings Accumulation Plan
account with the Transfer Agent. The program is offered to companies that have
at least 250 eligible employees. After a PruArray Plan qualifies to purchase
Class A shares at NAV, all subsequent purchases will be made at NAV.
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