<PAGE> PAGE 1
000 B000000 04/30/97
000 C000000 0000807394
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 PRUDENTIAL MUNICIPAL BOND FUND
001 B000000 811-4930
001 C000000 9733677530
002 A000000 100 MULBERRY STREET
002 B000000 NEWARK
002 C000000 NJ
002 D010000 07102
002 D020000 4077
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 INTERMEDIATE 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
<PAGE> PAGE 2
007 C012300 23
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 INVESTMENTS FUND MANAGEMENT LLC
008 B00AA02 A
008 C00AA02 801-31104
008 D01AA02 NEWARK
008 D02AA02 NJ
008 D03AA02 07102
008 D04AA02 4077
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
<PAGE> PAGE 3
012 A00AA01 PRUDENTIAL MUTUAL FUND SERVICES LLC
012 B00AA01 84-4110019
012 C01AA01 NEW BRUNSWICK
012 C02AA01 NJ
012 C03AA01 08906
013 A00AA01 PRICE WATERHOUSE LLP
013 B01AA01 NEW YORK
013 B02AA01 NY
013 B03AA01 10036
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 88
019 C00AA00 PRUDENTIAL
020 A000001 BEAR, STEARNS & CO., INC.
020 B000001 13-3299429
020 C000001 125
020 A000002 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
020 B000002 13-5674085
020 C000002 11
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 164
022 A000001 GOLDMAN, SACHS & CO.
022 B000001 13-5108880
022 C000001 487621
022 D000001 504512
022 A000002 SIMON (W.E.) & SONS MUNICIPAL SECURITIES, INC
022 B000002 22-3017217
022 C000002 317368
022 D000002 401795
022 A000003 BEAR, STEARNS & CO., INC.
022 B000003 13-3299429
022 C000003 332407
022 D000003 154152
022 A000004 MORGAN STANLEY & CO., INC.
022 B000004 13-2655998
022 C000004 74225
<PAGE> PAGE 4
022 D000004 95320
022 A000005 MORGAN (J.P.) SECURITIES, INC.
022 B000005 13-3224016
022 C000005 73810
022 D000005 71534
022 A000006 SMITH BARNEY, INC.
022 B000006 13-1912900
022 C000006 82935
022 D000006 44190
022 A000007 PAINEWEBBER INC.
022 B000007 13-2638166
022 C000007 45073
022 D000007 37530
022 A000008 GREENWICH PARTNERS, LLC
022 B000008 06-1465825
022 C000008 43398
022 D000008 35868
022 A000009 LEHMAN, INC.
022 B000009 13-2518466
022 C000009 47095
022 D000009 32133
022 A000010 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000010 13-5674085
022 C000010 33306
022 D000010 41007
023 C000000 1697365
023 D000000 1653317
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
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 Y
041 00AA00 Y
<PAGE> PAGE 5
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.000
048 A01AA00 1000000
048 A02AA00 0.500
048 B01AA00 0
048 B02AA00 0.000
048 C01AA00 0
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 1000000
048 K02AA00 0.450
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 Y
053 B00AA00 Y
053 C00AA00 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
058 A00AA00 N
058 B00AA00 N
058 C00AA00 N
<PAGE> PAGE 6
058 D00AA00 N
058 E00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 1000
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
077 A000000 Y
077 B000000 Y
077 C000000 Y
077 D000000 Y
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 Y
077 J000000 Y
077 K000000 Y
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 Y
077 P000000 N
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 77
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
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
<PAGE> PAGE 7
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
028 A010100 8443
028 A020100 2410
028 A030100 0
028 A040100 13580
028 B010100 7584
028 B020100 2464
028 B030100 0
028 B040100 15949
028 C010100 10610
028 C020100 2146
028 C030100 0
028 C040100 16218
028 D010100 10421
028 D020100 2439
028 D030100 0
028 D040100 17273
028 E010100 11397
028 E020100 2092
028 E030100 0
028 E040100 15989
028 F010100 10341
028 F020100 2308
028 F030100 0
028 F040100 15178
028 G010100 58796
028 G020100 13859
028 G030100 0
028 G040100 94187
028 H000100 13237
029 000100 Y
030 A000100 210
030 B000100 3.00
030 C000100 0.00
031 A000100 0
031 B000100 0
032 000100 0
033 000100 210
034 000100 Y
035 000100 1204
036 A000100 N
036 B000100 0
042 A000100 0
042 B000100 0
042 C000100 0
042 D000100 100
042 E000100 0
042 F000100 0
<PAGE> PAGE 8
042 G000100 0
042 H000100 0
043 000100 3982
044 000100 0
055 A000100 N
055 B000100 N
056 000100 N
057 000100 N
062 A000100 Y
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
062 E000100 0.0
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 96.9
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
063 A000100 0
063 B000100 19.2
064 A000100 Y
064 B000100 Y
065 000100 N
070 A010100 Y
070 A020100 N
070 B010100 N
070 B020100 N
070 C010100 N
070 C020100 N
070 D010100 N
070 D020100 N
070 E010100 Y
070 E020100 Y
070 F010100 N
070 F020100 N
070 G010100 Y
070 G020100 Y
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 264933
071 B000100 305928
071 C000100 1006857
071 D000100 26
072 A000100 12
072 B000100 72934
072 C000100 0
072 D000100 0
072 E000100 0
072 F000100 5129
072 G000100 0
072 H000100 -514
072 I000100 479
072 J000100 144
072 K000100 0
072 L000100 196
072 M000100 15
072 N000100 64
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 15
072 S000100 18
072 T000100 3982
072 U000100 0
072 V000100 0
072 W000100 38
072 X000100 9566
072 Y000100 0
072 Z000100 63368
072AA000100 13610
072BB000100 17882
072CC010100 18105
072CC020100 0
072DD010100 43873
<PAGE> PAGE 10
072DD020100 19495
072EE000100 123
073 A010100 0.6600
073 A020100 1.7800
073 B000100 0.0000
073 C000100 0.0000
074 A000100 0
074 B000100 0
074 C000100 0
074 D000100 980629
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 14754
074 K000100 0
074 L000100 21556
074 M000100 18
074 N000100 1016957
074 O000100 0
074 P000100 678
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 4410
074 S000100 0
074 T000100 1011869
074 U010100 61411
074 U020100 31955
074 V010100 10.84
074 V020100 10.84
074 W000100 0.0000
074 X000100 34574
074 Y000100 0
075 A000100 0
075 B000100 1029009
076 000100 0.00
028 A010200 10820
028 A020200 1202
028 A030200 0
028 A040200 7542
028 B010200 31278
028 B020200 4884
028 B030200 0
028 B040200 49097
028 C010200 41164
028 C020200 1094
028 C030200 0
028 C040200 38013
<PAGE> PAGE 11
028 D010200 21241
028 D020200 1222
028 D030200 0
028 D040200 39264
028 E010200 42480
028 E020200 1036
028 E030200 0
028 E040200 51004
028 F010200 41408
028 F020200 1140
028 F030200 0
028 F040200 49355
028 G010200 188391
028 G020200 10578
028 G030200 0
028 G040200 234275
028 H000200 184025
029 000200 Y
030 A000200 89
030 B000200 3.00
030 C000200 0.00
031 A000200 0
031 B000200 0
032 000200 0
033 000200 89
034 000200 Y
035 000200 650
036 A000200 N
036 B000200 0
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 2024
044 000200 0
055 A000200 N
055 B000200 N
056 000200 N
057 000200 N
062 A000200 Y
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 3.2
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
<PAGE> PAGE 12
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 95.6
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
063 A000200 0
063 B000200 15.6
064 A000200 N
064 B000200 N
070 A010200 Y
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 Y
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 565764
<PAGE> PAGE 13
071 B000200 624083
071 C000200 516415
071 D000200 110
072 A000200 12
072 B000200 31174
072 C000200 0
072 D000200 0
072 E000200 0
072 F000200 2771
072 G000200 0
072 H000200 -277
072 I000200 359
072 J000200 92
072 K000200 0
072 L000200 149
072 M000200 15
072 N000200 81
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 15
072 S000200 11
072 T000200 2024
072 U000200 0
072 V000200 0
072 W000200 22
072 X000200 5262
072 Y000200 0
072 Z000200 25912
072AA000200 19275
072BB000200 7144
072CC010200 0
072CC020200 7713
072DD010200 16602
072DD020200 9310
072EE000200 5714
073 A010200 0.5000
073 A020200 1.3900
073 B000200 0.4400
073 C000200 0.0400
074 A000200 49
074 B000200 0
074 C000200 16150
074 D000200 485172
074 E000200 0
074 F000200 0
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 5401
074 K000200 0
<PAGE> PAGE 14
074 L000200 7189
074 M000200 10
074 N000200 513971
074 O000200 4656
074 P000200 510
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 1487
074 S000200 0
074 T000200 507318
074 U010200 27304
074 U020200 19198
074 V010200 10.91
074 V020200 10.91
074 W000200 0.0000
074 X000200 21725
074 Y000200 0
075 A000200 0
075 B000200 554245
076 000200 0.00
028 A010300 543
028 A020300 103
028 A030300 0
028 A040300 1556
028 B010300 974
028 B020300 122
028 B030300 0
028 B040300 1535
028 C010300 471
028 C020300 93
028 C030300 0
028 C040300 1345
028 D010300 410
028 D020300 108
028 D030300 0
028 D040300 1265
028 E010300 120
028 E020300 89
028 E030300 0
028 E040300 1002
028 F010300 119
028 F020300 100
028 F030300 0
028 F040300 1034
028 G010300 2637
028 G020300 615
028 G030300 0
028 G040300 7737
028 H000300 896
<PAGE> PAGE 15
029 000300 Y
030 A000300 5
030 B000300 3.00
030 C000300 0.00
031 A000300 0
031 B000300 0
032 000300 0
033 000300 4
034 000300 Y
035 000300 87
036 A000300 N
036 B000300 0
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 191
044 000300 0
055 A000300 N
055 B000300 N
056 000300 N
057 000300 N
062 A000300 Y
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 1.4
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 97.6
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.0
063 A000300 0
063 B000300 9.3
064 A000300 N
064 B000300 N
070 A010300 Y
070 A020300 N
070 B010300 N
<PAGE> PAGE 16
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 Y
070 H010300 N
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 21414
071 B000300 30042
071 C000300 46828
071 D000300 46
072 A000300 12
072 B000300 2661
072 C000300 0
072 D000300 0
072 E000300 0
072 F000300 244
072 G000300 0
072 H000300 -24
072 I000300 41
072 J000300 68
072 K000300 0
072 L000300 83
072 M000300 15
072 N000300 54
<PAGE> PAGE 17
072 O000300 0
072 P000300 0
072 Q000300 0
072 R000300 15
072 S000300 10
072 T000300 191
072 U000300 0
072 V000300 0
072 W000300 6
072 X000300 703
072 Y000300 0
072 Z000300 1958
072AA000300 905
072BB000300 427
072CC010300 0
072CC020300 700
072DD010300 1371
072DD020300 587
072EE000300 32
073 A010300 0.4200
073 A020300 1.1600
073 B000300 0.0000
073 C000300 0.0400
074 A000300 0
074 B000300 0
074 C000300 600
074 D000300 43161
074 E000300 0
074 F000300 0
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 0
074 K000300 0
074 L000300 805
074 M000300 1
074 N000300 44567
074 O000300 0
074 P000300 46
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 298
074 S000300 0
074 T000300 44223
074 U010300 2831
074 U020300 1345
074 V010300 10.59
074 V020300 10.59
074 W000300 0.0000
<PAGE> PAGE 18
074 X000300 2083
074 Y000300 0
075 A000300 0
075 B000300 48920
076 000300 0.00
SIGNATURE GRACE TORRES
TITLE ASSISTANT TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND HIGH YIELD SERIES
<SERIES>
<NUMBER> 001
<NAME> PRUDENTIAL MUNICIPAL BOND FUND HIGH YIELD SERIES
(CLASS A)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
<INVESTMENTS-AT-COST> 949,207,739
<INVESTMENTS-AT-VALUE> 980,628,714
<RECEIVABLES> 36,310,753
<ASSETS-OTHER> 17,758
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,016,957,225
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,088,382
<TOTAL-LIABILITIES> 5,088,382
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 998,935,122
<SHARES-COMMON-STOCK> 93,365,816
<SHARES-COMMON-PRIOR> 96,175,471
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (18,487,254)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 31,420,975
<NET-ASSETS> 1,011,868,843
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 72,933,887
<OTHER-INCOME> 0
<EXPENSES-NET> 9,565,776
<NET-INVESTMENT-INCOME> 63,368,111
<REALIZED-GAINS-CURRENT> (4,271,817)
<APPREC-INCREASE-CURRENT> 18,105,192
<NET-CHANGE-FROM-OPS> 77,201,486
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (63,368,111)
<DISTRIBUTIONS-OF-GAINS> (123,008)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 116,459,010
<NUMBER-OF-SHARES-REDEEMED> (175,001,590)
<SHARES-REINVESTED> 28,109,609
<NET-CHANGE-IN-ASSETS> (16,722,604)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (14,083,951)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,129,335
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 9,046,851
<AVERAGE-NET-ASSETS> 294,940,000
<PER-SHARE-NAV-BEGIN> 10.70
<PER-SHARE-NII> 0.70
<PER-SHARE-GAIN-APPREC> 0.14
<PER-SHARE-DIVIDEND> (0.70)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.84
<EXPENSE-RATIO> 0.64
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND HIGH YIELD SERIES
<SERIES>
[NUMBER] 002
<NAME> PRUDENTIAL MUNICIPAL BOND FUND HIGH YIELD SERIES
(CLASS B)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 949,207,739
[INVESTMENTS-AT-VALUE] 980,628,714
[RECEIVABLES] 36,310,753
[ASSETS-OTHER] 17,758
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,016,957,225
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 5,088,382
[TOTAL-LIABILITIES] 5,088,382
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 998,935,122
[SHARES-COMMON-STOCK] 93,365,816
[SHARES-COMMON-PRIOR] 96,175,471
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (18,487,254)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 31,420,975
[NET-ASSETS] 1,011,868,843
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 72,933,887
[OTHER-INCOME] 0
[EXPENSES-NET] 9,565,776
[NET-INVESTMENT-INCOME] 63,368,111
[REALIZED-GAINS-CURRENT] (4,271,817)
[APPREC-INCREASE-CURRENT] 18,105,192
[NET-CHANGE-FROM-OPS] 77,201,486
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (63,368,111)
[DISTRIBUTIONS-OF-GAINS] (123,008)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 116,459,010
[NUMBER-OF-SHARES-REDEEMED] (175,001,590)
[SHARES-REINVESTED] 28,109,609
[NET-CHANGE-IN-ASSETS] (16,722,604)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (14,083,951)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 5,129,335
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 9,046,851
[AVERAGE-NET-ASSETS] 725,305,000
[PER-SHARE-NAV-BEGIN] 10.69
[PER-SHARE-NII] 0.66
[PER-SHARE-GAIN-APPREC] 0.15
[PER-SHARE-DIVIDEND] (0.66)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 10.84
[EXPENSE-RATIO] 1.04
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.00
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND HIGH YIELD SERIES
<SERIES>
[NUMBER] 003
<NAME> PRUDENTIAL MUNICIPAL BOND FUND HIGH YIELD SERIES
(CLASS C)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 949,207,739
[INVESTMENTS-AT-VALUE] 980,628,714
[RECEIVABLES] 36,310,753
[ASSETS-OTHER] 17,758
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,016,957,225
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 5,088,382
[TOTAL-LIABILITIES] 5,088,382
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 998,935,122
[SHARES-COMMON-STOCK] 93,365,816
[SHARES-COMMON-PRIOR] 96,175,471
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (18,487,254)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 31,420,975
[NET-ASSETS] 1,011,868,843
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 72,933,887
[OTHER-INCOME] 0
[EXPENSES-NET] 9,565,776
[NET-INVESTMENT-INCOME] 63,368,111
[REALIZED-GAINS-CURRENT] (4,271,817)
[APPREC-INCREASE-CURRENT] 18,105,192
[NET-CHANGE-FROM-OPS] 77,201,486
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (63,368,111)
[DISTRIBUTIONS-OF-GAINS] (123,008)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 116,459,010
[NUMBER-OF-SHARES-REDEEMED] (175,001,590)
[SHARES-REINVESTED] 28,109,609
[NET-CHANGE-IN-ASSETS] (16,722,604)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (14,083,951)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 5,129,335
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 9,046,851
[AVERAGE-NET-ASSETS] 8,060,000
[PER-SHARE-NAV-BEGIN] 10.69
[PER-SHARE-NII] 0.63
[PER-SHARE-GAIN-APPREC] 0.15
[PER-SHARE-DIVIDEND] (0.63)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 10.84
[EXPENSE-RATIO] 1.29
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.00
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND HIGH YIELD SERIES
<SERIES>
[NUMBER] 004
<NAME> PRUDENTIAL MUNICIPAL BOND FUND HIGH YIELD SERIES
(CLASS Z)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 949,207,739
[INVESTMENTS-AT-VALUE] 980,628,714
[RECEIVABLES] 36,310,753
[ASSETS-OTHER] 17,758
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 1,016,957,225
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 5,088,382
[TOTAL-LIABILITIES] 5,088,382
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 998,935,122
[SHARES-COMMON-STOCK] 93,365,816
[SHARES-COMMON-PRIOR] 96,175,471
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (18,487,254)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 31,420,975
[NET-ASSETS] 1,011,868,843
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 72,933,887
[OTHER-INCOME] 0
[EXPENSES-NET] 9,565,776
[NET-INVESTMENT-INCOME] 63,368,111
[REALIZED-GAINS-CURRENT] (4,271,817)
[APPREC-INCREASE-CURRENT] 18,105,192
[NET-CHANGE-FROM-OPS] 77,201,486
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (63,368,111)
[DISTRIBUTIONS-OF-GAINS] (123,008)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 116,459,010
[NUMBER-OF-SHARES-REDEEMED] (175,001,590)
[SHARES-REINVESTED] 28,109,609
[NET-CHANGE-IN-ASSETS] (16,722,604)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (14,083,951)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 5,129,335
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 9,046,851
[AVERAGE-NET-ASSETS] 704,000
[PER-SHARE-NAV-BEGIN] 10.79
[PER-SHARE-NII] 0.45
[PER-SHARE-GAIN-APPREC] 0.04
[PER-SHARE-DIVIDEND] (0.45)
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 10.83
[EXPENSE-RATIO] 0.54
[AVG-DEBT-OUTSTANDING] 0.00
[AVG-DEBT-PER-SHARE] 0.00
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
<SERIES>
[NUMBER] 001
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INSURED SERIES
(CLASS A)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 491,496,078
[INVESTMENTS-AT-VALUE] 501,321,625
[RECEIVABLES] 12,590,025
[ASSETS-OTHER] 59,160
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 513,970,810
[PAYABLE-FOR-SECURITIES] 4,655,893
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,996,499
[TOTAL-LIABILITIES] 6,652,392
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 491,892,717
[SHARES-COMMON-STOCK] 46,501,727
[SHARES-COMMON-PRIOR] 53,343,285
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 579,841
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 9,633,860
[NET-ASSETS] 502,106,418
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 31,173,544
[OTHER-INCOME] 0
[EXPENSES-NET] 5,261,652
[NET-INVESTMENT-INCOME] 25,911,892
[REALIZED-GAINS-CURRENT] 12,131,022
[APPREC-INCREASE-CURRENT] (7,713,454)
[NET-CHANGE-FROM-OPS] 30,329,460
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (25,911,892)
[DISTRIBUTIONS-OF-GAINS] (5,415,492)
[DISTRIBUTIONS-OTHER] (298,101)
[NUMBER-OF-SHARES-SOLD] 201,450,948
[NUMBER-OF-SHARES-REDEEMED] (294,754,828)
[SHARES-REINVESTED] 17,841,830
[NET-CHANGE-IN-ASSETS] (76,758,075)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (625,588)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,771,203
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 4,981,024
[AVERAGE-NET-ASSETS] 187,371,000
[PER-SHARE-NAV-BEGIN] 10.94
[PER-SHARE-NII] 0.63
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] (0.55)
[PER-SHARE-DISTRIBUTIONS] (0.12)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 10.90
[EXPENSE-RATIO] 0.68
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.00
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
<SERIES>
[NUMBER] 002
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INSURED SERIES
(CLASS B)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 491,496,078
[INVESTMENTS-AT-VALUE] 501,321,625
[RECEIVABLES] 12,590,025
[ASSETS-OTHER] 59,160
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 513,970,810
[PAYABLE-FOR-SECURITIES] 4,655,893
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,996,499
[TOTAL-LIABILITIES] 6,652,392
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 491,892,717
[SHARES-COMMON-STOCK] 46,501,727
[SHARES-COMMON-PRIOR] 53,343,285
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 579,841
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 9,633,860
[NET-ASSETS] 502,106,418
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 31,173,544
[OTHER-INCOME] 0
[EXPENSES-NET] 5,261,652
[NET-INVESTMENT-INCOME] 25,911,892
[REALIZED-GAINS-CURRENT] 12,131,022
[APPREC-INCREASE-CURRENT] (7,713,454)
[NET-CHANGE-FROM-OPS] 30,329,460
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (25,911,892)
[DISTRIBUTIONS-OF-GAINS] (5,415,492)
[DISTRIBUTIONS-OTHER] (298,101)
[NUMBER-OF-SHARES-SOLD] 201,450,948
[NUMBER-OF-SHARES-REDEEMED] (294,754,828)
[SHARES-REINVESTED] 17,841,830
[NET-CHANGE-IN-ASSETS] (76,758,075)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (625,588)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,771,203
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 4,981,024
[AVERAGE-NET-ASSETS] 365,891,000
[PER-SHARE-NAV-BEGIN] 10.95
[PER-SHARE-NII] 0.58
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] (0.50)
[PER-SHARE-DISTRIBUTIONS] (0.12)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 10.91
[EXPENSE-RATIO] 1.08
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.00
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
<SERIES>
[NUMBER] 003
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INSURED SERIES
(CLASS C)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 491,496,078
[INVESTMENTS-AT-VALUE] 501,321,625
[RECEIVABLES] 12,590,025
[ASSETS-OTHER] 59,160
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 513,970,810
[PAYABLE-FOR-SECURITIES] 4,655,893
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,996,499
[TOTAL-LIABILITIES] 6,652,392
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 491,892,717
[SHARES-COMMON-STOCK] 46,501,727
[SHARES-COMMON-PRIOR] 53,343,285
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 579,841
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 9,633,860
[NET-ASSETS] 502,106,418
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 31,173,544
[OTHER-INCOME] 0
[EXPENSES-NET] 5,261,652
[NET-INVESTMENT-INCOME] 25,911,892
[REALIZED-GAINS-CURRENT] 12,131,022
[APPREC-INCREASE-CURRENT] (7,713,454)
[NET-CHANGE-FROM-OPS] 30,329,460
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (25,911,892)
[DISTRIBUTIONS-OF-GAINS] (5,415,492)
[DISTRIBUTIONS-OTHER] (298,101)
[NUMBER-OF-SHARES-SOLD] 201,450,948
[NUMBER-OF-SHARES-REDEEMED] (294,754,828)
[SHARES-REINVESTED] 17,841,830
[NET-CHANGE-IN-ASSETS] (76,758,075)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (625,588)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,771,203
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 4,981,024
[AVERAGE-NET-ASSETS] 973,000
[PER-SHARE-NAV-BEGIN] 10.95
[PER-SHARE-NII] 0.56
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] (0.49)
[PER-SHARE-DISTRIBUTIONS] (0.11)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 10.91
[EXPENSE-RATIO] 1.33
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.00
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
<SERIES>
[NUMBER] 004
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INSURED SERIES
(CLASS Z)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 491,496,078
[INVESTMENTS-AT-VALUE] 501,321,625
[RECEIVABLES] 12,590,025
[ASSETS-OTHER] 59,160
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 513,970,810
[PAYABLE-FOR-SECURITIES] 4,655,893
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,996,499
[TOTAL-LIABILITIES] 6,652,392
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 491,892,717
[SHARES-COMMON-STOCK] 46,501,727
[SHARES-COMMON-PRIOR] 53,343,285
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 579,841
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 9,633,860
[NET-ASSETS] 502,106,418
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 31,173,544
[OTHER-INCOME] 0
[EXPENSES-NET] 5,261,652
[NET-INVESTMENT-INCOME] 25,911,892
[REALIZED-GAINS-CURRENT] 12,131,022
[APPREC-INCREASE-CURRENT] (7,713,454)
[NET-CHANGE-FROM-OPS] 30,329,460
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (25,911,892)
[DISTRIBUTIONS-OF-GAINS] (5,415,492)
[DISTRIBUTIONS-OTHER] (298,101)
[NUMBER-OF-SHARES-SOLD] 201,450,948
[NUMBER-OF-SHARES-REDEEMED] (294,754,828)
[SHARES-REINVESTED] 17,841,830
[NET-CHANGE-IN-ASSETS] (76,758,075)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (625,588)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 2,771,203
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 4,981,024
[AVERAGE-NET-ASSETS] 10,000
[PER-SHARE-NAV-BEGIN] 11
[PER-SHARE-NII] 0
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DIVIDEND] (0)
[PER-SHARE-DISTRIBUTIONS] (0)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11
[EXPENSE-RATIO] 1
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
<SERIES>
[NUMBER] 001
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
(CLASS A)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 43,325,811
[INVESTMENTS-AT-VALUE] 43,761,050
[RECEIVABLES] 804,568
[ASSETS-OTHER] 936
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 44,566,554
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 343,302
[TOTAL-LIABILITIES] 343,302
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 43,622,594
[SHARES-COMMON-STOCK] 4,176,360
[SHARES-COMMON-PRIOR] 5,007,087
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 152,513
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 448,145
[NET-ASSETS] 44,223,252
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 2,661,312
[OTHER-INCOME] 0
[EXPENSES-NET] 703,083
[NET-INVESTMENT-INCOME] 1,958,229
[REALIZED-GAINS-CURRENT] 478,036
[APPREC-INCREASE-CURRENT] (699,669)
[NET-CHANGE-FROM-OPS] 1,736,596
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (1,958,229)
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] (32,116)
[NUMBER-OF-SHARES-SOLD] 5,261,896
[NUMBER-OF-SHARES-REDEEMED] (15,354,228)
[SHARES-REINVESTED] 1,242,265
[NET-CHANGE-IN-ASSETS] (9,103,816)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (293,501)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 244,485
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 677,677
[AVERAGE-NET-ASSETS] 13,487,000
[PER-SHARE-NAV-BEGIN] 10.65
[PER-SHARE-NII] 0.46
[PER-SHARE-GAIN-APPREC] (0.05)
[PER-SHARE-DIVIDEND] (0.46)
[PER-SHARE-DISTRIBUTIONS] (0.01)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 10.59
[EXPENSE-RATIO] 1.15
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.00
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
<SERIES>
[NUMBER] 002
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
(CLASS B)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 43,325,811
[INVESTMENTS-AT-VALUE] 43,761,050
[RECEIVABLES] 804,568
[ASSETS-OTHER] 936
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 44,566,554
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 343,302
[TOTAL-LIABILITIES] 343,302
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 43,622,594
[SHARES-COMMON-STOCK] 4,176,360
[SHARES-COMMON-PRIOR] 5,007,087
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 152,513
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 448,145
[NET-ASSETS] 44,223,252
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 2,661,312
[OTHER-INCOME] 0
[EXPENSES-NET] 703,083
[NET-INVESTMENT-INCOME] 1,958,229
[REALIZED-GAINS-CURRENT] 478,036
[APPREC-INCREASE-CURRENT] (699,669)
[NET-CHANGE-FROM-OPS] 1,736,596
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (1,958,229)
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] (32,116)
[NUMBER-OF-SHARES-SOLD] 5,261,896
[NUMBER-OF-SHARES-REDEEMED] (15,354,228)
[SHARES-REINVESTED] 1,242,265
[NET-CHANGE-IN-ASSETS] (9,103,816)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (293,501)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 244,485
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 677,677
[AVERAGE-NET-ASSETS] 35,221,000
[PER-SHARE-NAV-BEGIN] 10.65
[PER-SHARE-NII] 0.42
[PER-SHARE-GAIN-APPREC] (0.05)
[PER-SHARE-DIVIDEND] (0.42)
[PER-SHARE-DISTRIBUTIONS] (0.01)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 10.59
[EXPENSE-RATIO] 1.55
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.00
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
<SERIES>
[NUMBER] 003
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
(CLASS C)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 43,325,811
[INVESTMENTS-AT-VALUE] 43,761,050
[RECEIVABLES] 804,568
[ASSETS-OTHER] 936
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 44,566,554
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 343,302
[TOTAL-LIABILITIES] 343,302
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 43,622,594
[SHARES-COMMON-STOCK] 4,176,360
[SHARES-COMMON-PRIOR] 5,007,087
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 152,513
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 448,145
[NET-ASSETS] 44,223,252
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 2,661,312
[OTHER-INCOME] 0
[EXPENSES-NET] 703,083
[NET-INVESTMENT-INCOME] 1,958,229
[REALIZED-GAINS-CURRENT] 478,036
[APPREC-INCREASE-CURRENT] (699,669)
[NET-CHANGE-FROM-OPS] 1,736,596
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (1,958,229)
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] (32,116)
[NUMBER-OF-SHARES-SOLD] 5,261,896
[NUMBER-OF-SHARES-REDEEMED] (15,354,228)
[SHARES-REINVESTED] 1,242,265
[NET-CHANGE-IN-ASSETS] (9,103,816)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (293,501)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 244,485
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 677,677
[AVERAGE-NET-ASSETS] 149,000
[PER-SHARE-NAV-BEGIN] 10.65
[PER-SHARE-NII] 0.39
[PER-SHARE-GAIN-APPREC] (0.05)
[PER-SHARE-DIVIDEND] (0.39)
[PER-SHARE-DISTRIBUTIONS] (0.01)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 10.59
[EXPENSE-RATIO] 1.80
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.00
<ARTICLE> 6
<CIK> 0000807394
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
<SERIES>
[NUMBER] 004
<NAME> PRUDENTIAL MUNICIPAL BOND FUND INTERMEDIATE SERIES
(CLASS Z)
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> APR-30-1997
[INVESTMENTS-AT-COST] 43,325,811
[INVESTMENTS-AT-VALUE] 43,761,050
[RECEIVABLES] 804,568
[ASSETS-OTHER] 936
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 44,566,554
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 343,302
[TOTAL-LIABILITIES] 343,302
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 43,622,594
[SHARES-COMMON-STOCK] 4,176,360
[SHARES-COMMON-PRIOR] 5,007,087
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 152,513
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 448,145
[NET-ASSETS] 44,223,252
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 2,661,312
[OTHER-INCOME] 0
[EXPENSES-NET] 703,083
[NET-INVESTMENT-INCOME] 1,958,229
[REALIZED-GAINS-CURRENT] 478,036
[APPREC-INCREASE-CURRENT] (699,669)
[NET-CHANGE-FROM-OPS] 1,736,596
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (1,958,229)
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] (32,116)
[NUMBER-OF-SHARES-SOLD] 5,261,896
[NUMBER-OF-SHARES-REDEEMED] (15,354,228)
[SHARES-REINVESTED] 1,242,265
[NET-CHANGE-IN-ASSETS] (9,103,816)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (293,501)
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 244,485
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 677,677
[AVERAGE-NET-ASSETS] 63,000
[PER-SHARE-NAV-BEGIN] 11
[PER-SHARE-NII] 0
[PER-SHARE-GAIN-APPREC] (0)
[PER-SHARE-DIVIDEND] (0)
[PER-SHARE-DISTRIBUTIONS] (0)
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 11
[EXPENSE-RATIO] 1
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
For the fiscal year ended (a) April 30, 1997
File number: 811-4930
SUB-ITEM 77C
Submission of Matters to a Vote of Security Holders
A Special Meeting of Shareholders was held on October 30,
1996. At such meeting the shareholders approved the following
proposals:
a) Approval of the election of Edward D. Beach, Eugene C.
Dorsey, Delayne D. Gold, Robert F. Gunia, Harry A.
Jacobs, Jr., Donald D. Lennox, Mendal A. Melzer, Thomas
T. Mooney, Thomas H. O'Brien, Richard A. Redeker, Nancy
H. Teeters, and Louis A. Weil as Directors of the Fund
each to hold office until the earlier to occur of (i)
the next meeting of Shareholders at which Directors are
elected and until his or her successor shall have been
duly elected and shall have qualified or (ii) their
terms expire in accordance with the Fund's retirement
policy.
b) Approval of an amendment of the Fund's fundamental
investment restriction regarding investment in shares
of other investment companies which would allow the
Fund to invest up to 10% of its total assets in shares
of other companies.
Affirmative Negative
votes cast votes cast Abstain
63,342,978 3,795,309 3,828,292
c) Approval of an amendment of the Fund's fundamental
investment restriction regarding unseasoned issuers
which would prohibit the Fund from purchasing any
security if as a result the Fund would have more than
5% of its total assets invested in securities of
companies less than three years old.
Affirmative Negative
votes cast votes cast Abstain
61,026,171 5,522,333 4,418,075
d) Approval of an amendment of the Fund's investment
restriction to permit an increase in the borrowing
capabilities of the Fund which would allow the Fund to
borrow up 33 1/3% of the value of its total assets.
Affirmative Negative
votes cast votes cast Abstain
60,690,174 5,784,514 4,491,891
e) Approval of the selection of independent accountants
for the Fund conditioned upon the right by vote of a
majority of such Fund's outstanding voting shares at
any meeting called for the purpose to terminate such
employment forthwith without penalties.
Affirmative Negative
votes cast votes cast Abstain
71,910,326 1,203,032 3,059,785
For the period ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77 D
Policies with Respect to Security Investments
On October 30, 1996 the Fund's shareholders approved
the following changes to the Fund's investment policies:
Approval of an amendment of the Fund's fundamental
investment restriction regarding investment in shares
of other investment companies which would allow the
Fund to invest up to 10% of its total assets in shares
of other companies.
Approval of an amendment of the Fund's fundamental
investment restriction regarding unseasoned issuers
which would prohibit the Fund from purchasing any
security if as a result the Fund would have more than
5% of its total assets invested in securities of
companies less than three years old.
Approval of an amendment of the Fund's investment
restriction to permit an increase in the borrowing
capabilities of the Fund which would allow the Fund to
borrow up 33 1/3% of the value of its total assets.
For the fiscal year ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77I
Terms of New or Amended Securities
The Fund is authorized to issue an unlimited
number of Class Z shares. Class Z shares are not
subject to either an initial or contingent deferred
sales charge nor are they subject to any Rule 12b-1
fees. Class Z shares will be offered to a limited group
of eligible investors.
For the fiscal year ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77J
Revaluation of Assets or Restatement of Capital Share Account
The Prudential Municipal Bond 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, 1997, the effect of applying this statement was to
increase undistributed net investment income by $123,008,
increase accumulated net realized loss by $131,486 and increase
pain-in capital in excess of par by $8,478 for the High Yield
Series. For the Insured Series, the effect of applying this
statement was to increase undistributed net investment income and
decrease accumulated net realized gain by $208,101. The effect of
applying this statement for the Intermediate Series was to
increase undistributed net investment income by $32,116, decrease
accumulated net realized gain by $32,022 and decrease paid-in
capital in excess of par by $94. The current year effect of
applying the Statement of Position was due to the sale of
securities purchased with market discount. Net investment income,
net realized gains and net assets were not affected by this
change.
For the fiscal year ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Metropolitan Trans Authority NY Commuter Facs
Rev
2. Date of Purchase
5/10/96
3. Number of Securities Purchased
75,000 - Due 07/01/2028
4. Dollar Amount of Purchase
$7,407,675
5. Price Per Unit
$98.769 - Due 07/01/2028
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Smith Barney
7. Other Members of the Underwriting Syndicate
Smith Barney
Merrill Lynch & Co.
Artemis Capital Group
Goldman, Sachs, & Co.
Prudential Securities Inc.
First Albany Corp.
Pryor, McClendon, Counts & Co., Inc.
JP Morgan & Co.
Morgan Stanley & Co.
Cambridge Partners LLC
Greenwich Partners Inc.
Samuel A. Ramiriz & Co.
Dillion, Reed & Co. Inc.
PaineWebber Inc.
Lehman Brothers
Citicorp Securities
Lebenthal & Co.
William E. Simon & Sons
For the fiscal year ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
California St Pub Wks Brd Dept of Corrections
2. Date of Purchase
5/01/96
3. Number of Securities Purchased
40,000 - Due 01/01/2012
4. Dollar Amount of Purchase
$3,979,280
5. Price Per Unit
$99.482 - Due 0017/01/2012
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Bear Stearns
7. Other Members of the Underwriting Syndicate
Bear Stearns
BA Securities Inc.
Prudential Securities Incorporated
Yaeger Capital Markets, Inc.
EJ De La Ross & Co.
For the fiscal year ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
The City of New York
2. Date of Purchase
8/8/96
3. Number of Securities Purchased
70,000 - Due 08/15/2015
4. Dollar Amount of Purchase
$7,255,150
5. Price Per Unit
$103.645 - Due 08/15/2011
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch
7. Other Members of the Underwriting Syndicate
Merrill Lynch & Co.
Artemis Capital Group
Grigsby Bradford & Co. Inc.
Morgan Stanley & Co.
Goldman, Sachs, & Co.
Prudential Securities Inc.
Samuel A. Ramirez & Co.
Bear Stearns & Co.
Advest Inc.
MR Beal & Company
Citicorp Securities
PaineWebber Inc.
Oppenheimer & Co.
Muriel Siebert & Co.
Lehman Brothers
Smith Barney
First Albany Corporation
JP Morgan & Co
AG Edwards & Sons
Cambridge Partners LLC
Lebenthal & Co.
Pryor McClendon, Counts
Roosevelt & Cross
William E. Simon & Sons Municipal Securites
For the fiscal year ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
NY State Local Govt Assist Corp
2. Date of Purchase
11/20/96
3. Number of Securities Purchased
10,000
4. Dollar Amount of Purchase
$981,890
5. Price Per Unit
$98.189
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Bear Stearns
7. Other Members of the Underwriting Syndicate
Merrill Lynch & Co.
Artemis Capital Group
Morgan Stanley & Co.
Goldman, Sachs, & Co.
Prudential Securities Inc.
Samuel A. Ramirez & Co.
Bear Stearns & Co.
MR Beal & Company
PaineWebber Inc.
Lehman Brothers
Smith Barney
First Albany Corporation
JP Morgan & Co.
Pryor McClendon, Counts
Roosevelt & Cross
William E. Simon & Sons Municipal Securites
WR Lazard, Laidlaw & Luther Inc.
Dillon, Reed & Co., Inc.
For the fiscal year ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
NY State Local Govt Assist Corp
2. Date of Purchase
11/20/96
3. Number of Securities Purchased
65,000
4. Dollar Amount of Purchase
$6,382,285
5. Price Per Unit
$98.189
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Bear Stearns
7. Other Members of the Underwriting Syndicate
Merrill Lynch & Co.
Artemis Capital Group
Morgan Stanley & Co.
Goldman, Sachs, & Co.
Prudential Securities Inc.
Samuel A. Ramirez & Co.
Bear Stearns & Co.
MR Beal & Company
PaineWebber Inc.
Lehman Brothers
Smith Barney
First Albany Corporation
JP Morgan & Co.
Pryor McClendon, Counts
Roosevelt & Cross
William E. Simon & Sons Municipal Securites
WR Lazard, Laidlaw & Luther Inc.
Dillon Reed & Co., Inc.
For the fiscal year ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
NY State Urban Development Corp, - Empire State
Development Corp
2. Date of Purchase
11/01/96
3. Number of Securities Purchased
60,000
4. Dollar Amount of Purchase
$5,722,560
5. Price Per Unit
$95.376
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
PaineWebber Incorporated
7. Other Members of the Underwriting Syndicate
Merrill Lynch & Co.
Morgan Stanley & Co.
Goldman, Sachs, & Co.
Prudential Securities Inc.
Samuel A. Ramirez & Co.
Bear Stearns & Co.
MR Beal & Company
PaineWebber Inc.
Lehman Brothers
Smith Barney
First Albany Corporation
JP Morgan & Co.
Roosevelt & Cross
William E. Simon & Sons Municipal Securites
Dillon Reed & Co., Inc.
Cambridge Partners LLC
Carmona, Motley & Co., Inc.
Fleet Securities
For the fiscal year ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
NY City Water
2. Date of Purchase
10/18/96
3. Number of Securities Purchased
54,000
4. Dollar Amount of Purchase
$5,096,250
5. Price Per Unit
$94.375
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
PaineWebber Incorporated
7. Other Members of the Underwriting Syndicate
Merrill Lynch & Co.
Morgan Stanley & Co.
Goldman, Sachs, & Co.
Prudential Securities Inc.
Samuel A. Ramirez & Co.
Bear Stearns & Co.
PaineWebber Inc.
Lehman Brothers
Smith Barney
First Albany Corporation
JP Morgan & Co.
William E. Simon & Sons Municipal Securites
Dillon Reed & Co., Inc.
Reinoso & Company Incorporated
David Lerner Associates, Inc.
A.G. Edwards & Sons, Inc.
Artemis Capital Group, Inc.
For the fiscal year ended (a) 4/30/97
File number (c) 811-4930
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
New York City
2. Date of Purchase
1/17/97
3. Number of Securities Purchased
60,000
4. Dollar Amount of Purchase
$5,827,680
5. Price Per Unit
$97.128
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Goldman Sachs & Company
7. Other Members of the Underwriting Syndicate
Merrill Lynch & Co.
Morgan Stanley & Co.
Goldman, Sachs, & Co.
Prudential Securities Inc.
Samuel A. Ramirez & Co.
Bear Stearns & Co.
MR Beal & Company
PaineWebber Inc.
Lehman Brothers
Smith Barney
First Albany Corporation
JP Morgan & Co.
Roosevelt & Cross
William E. Simon & Sons Municipal Securites
Cambridge Partners LLC
Artemis Capital Group
Aubrey G. Lanston & Co. Inc.
Grigsby Brandford & Co. Inc.
A.G. Edwards and Sons, Inc.
Advest, Inc.
Pryor, McClendon, Counts & Co., Inc
Lebenthal & Co, Inc.
Citicorp Securities
Oppenheimer & Co. Inc.
Muriel Siebert & Co. Inc.
June 25, 1997
To the Shareholders and
Trustees of
Prudential Municipal Bond Fund
In planning and performing our audit of the financial
statements of the High Yield Series, Insured Series, and
Intermediate Series, constituting the Prudential Municipal
Bond Fund (the "Fund"), for the year ended April 30,
1997, we considered its internal control, including
control activities 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 internal control.
The management of the Fund is responsible for establishing
and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs
of control activities. Generally, control activities that
are relevant to an audit pertain to the entity's objective
of preparing financial statements for external purposes
that are fairly presented in conformity with generally
accepted accounting principles. Those control activities
include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in internal control,
errors or irregularities may occur and not be detected.
Also, projection of any evaluation of internal control 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 internal control would not
necessarily disclose all matters in internal control 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 any specific internal control components 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 internal control, including control activities
for safeguarding securities, that we consider to be
material weaknesses as defined above as of April 30, 1997.
This report is intended solely for the information and use
of management and the Trustees of the Fund and the
Securities and Exchange Commission.
Price Waterhouse LLP
- 2 -
Board of Directors or Trustees of:
Prudential Adjustable Rate Prudential High Yield
Securities Fund* Fund
Prudential Allocation Fund (2 Prudential
Portfolios) IncomeVertible Fund*
The BlackRock Government Income Prudential
Trust Intermediate Global
Global Utility Fund Income Fund
Nicholas-Applegate Fund Prudential Jennison
Prudential California Municipal Fund
Fund (2 Portfolios) Prudential MoneyMart
Prudential Distressed Assets
Securities Fund Prudential Mortgage
Prudential Diversified Bond Income Fund
Fund Prudential Multi-
Prudential Equity Fund Sector Fund
Prudential Equity Income Fund Prudential Municipal
Prudential Global Genesis Fund Bond Fund (3
Prudential Global Limited Portfolios)
Maturity Fund Prudential Municipal
Prudential Global Natural Series Fund (10
Resources Fund current
The Global Government Plus Fund Portfolios and 3
The Global Total merged Portfolios*)
Return Fund Prudential National
Prudential Government Municipals Fund
Income Fund Prudential Pacific
Prudential Government Growth Fund
Securities Trust - Prudential Small
Money Companies Fund
Market Series Prudential Structured
Maturity Fund
Prudential U.S.
Government Fund*
Prudential Utility
Fund
Prudential World Fund
* As of June 30, 1996, the Fund/Portfolio was no longer in operation.
The Fund/Portfolio merged into
another Fund within the Prudential Mutual Fund Family.
We have examined the accompanying description of the Prudential
Multiple Class 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, 1996. The control objectives were specified by Prudential
Mutual Fund Management, Inc. 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, 1996. 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, 1995 to June 30,
1996. 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, 1995 to June 30, 1996. However, the scope of our
engagement did not include tests to determine whether control
objectives not listed in Section I were achieved; accordingly we
express no opinion on the achievement of control objectives not
included in Section I.
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, 1996, and information about tests of the operating
effectiveness of specified policies and procedures covers the period
from July 1, 1995 to June 30, 1996. 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.
August 23, 1996
SECTION I
Policies and Procedures Placed in Operation
Prudential Multiple Class Pricing Worksheet
The Prudential Mutual Funds (the "Funds") have adopted a multiple
class pricing system. The multiple class pricing system consists of
four classes of shares (Class A, Class B, Class C and Class Z). Class
A shares are subject to an initial sales charge, Class B and Class C
shares are subject to a contingent deferred sales charge and Class Z
shares have no sales charge (Class Z shares which were first offered
on March 1, 1996, are offered exclusively for sale to the PSI Pension
Plan). 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 among the classes of shares,
State Street Bank and Trust Company (the Funds' custodian and
recordkeeper) utilizes the Prudential Multiple Class 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 among the
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 specific control objectives and policies and procedures relating
to the Worksheet are described on pages 4 and 5. 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 Multiple Class 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 1. Daily, the transfer
reported by the Fund's transfer agent forwards
agent is recorded for each class reports of capital
in an accurate and timely manner share activity for
by the Fund. each class which
includes a summary
of subscriptions,
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 1. The prior days
applicable, the ending NAV per
dividend/distribution for each share (b) for each
class are accurately computed on class is agreed to
a daily basis. the 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.
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.
CONTROL POLICIES
CONTROL OBJECTIVES AND PROCEDURES
4. Allocate investment
income among
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/deprec
iation to the
primary accounting
system of the Fund.
6. Allocate expenses
among 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
among the classes
in accordance with
the appropriate
asset allocation
percentage of each
class.
8. Record
dividends/distribut
ions 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/distributi
on to the previous
day's NAV and
dividend/
distribution for
each class.
11.The above
procedures are
reviewed by the
Fund supervisor or
manager.
SECTION II
Tests of Operating Effectiveness
Prudential Multiple Class Pricing Worksheet
July 1, 1995 to June 30, 1996
We reviewed the methodology and procedures for calculating the daily
net asset value and, if applicable, the dividends/distributions of the
classes of shares and the allocation of income and expenses among the
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 multiple class pricing
during the year ended June 30, 1996, 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
classes of shares and the allocation of income and expenses among the
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(C)/Back End" by dividing
"Adjusted Total Assets-Class B(C)/Back End" by "Adjusted Total
Assets Composite".
Recalculated "Percentage Assets-Class Z/No Fee" where applicable,
by dividing "Adjusted Total Assets-Class Z/No Fee" 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(C)/Back End" by
dividing "Adjusted Dividend Assets-Class B(C)/Back End" by
"Adjusted Dividend Assets Composite".
Recalculated "Percentage Dividend Assets-Class Z/No Fee" where
applicable, by dividing "Adjusted Dividend Assets-Class Z" 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", "Percentage
Dividend Assets-Class B(C)/Back End" and where applicable,
"percentage Dividend Assets-Class Z/No Fee", and for non-daily
dividend funds by multiplying the composite total by "Percentage
Assets-Class A/Front End", "Percentage Assets-Class B(C)/Back End"
and where applicable, "Percentage Assets-Class Z/No Fee".
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",
"Percentage Dividend Assets-Class B(C)/Back End" and where
applicable, "percentage Dividend Assets-Class Z/No Fee", and non-
daily dividend funds by multiplying the composite total by
"Percentage Assets-Class A/Front End", "Percentage Assets-Class
B(C)/Back End" " and where applicable, "Percentage Assets-Class
Z/No Fee"
Agreed the "12b-1 Fee-Class A/Front End" and "12b-1 Fee-Class
B(C)/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", "Dividend Shares Beginning of Day-Class
B(C)/Back End" and where applicable, "Dividend Shares Beginning of
Day-Class Z/No Fee".
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",
"Percentage Assets-Class B(C)/Back End" and where applicable,
"Percentage Assets-Class Z/No Fee".
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 nDistributed", "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", "Net Assets - Class B(C)/Back End" and where
applicable, "Net Assets-Class Z/No Fee" by "Current Shares
Outstanding - Class A/Front End", "Current Shares Outstanding -
Class B(C)/Back End" and where applicable, "Current Shares
Outstanding-Class Z/No Fee", respectively.
Recalculated "Offering Price" for Class A shares by applying the
"Load" percentage as stated in the fund's prospectus.
