<PAGE>
Dreyfus
New Jersey
Municipal
Bond Fund, Inc.
Semi-Annual
Report
June 30, 1996
<PAGE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on the Dreyfus New Jersey
Municipal Bond Fund, Inc. For its semi-annual reporting period ended June 30,
1996, income dividends exempt from Federal and State of New Jersey personal
income taxes of approximately $.360 per share were paid, which is equivalent
to an annualized tax-free distribution rate per share of 5.58%.* Some income
may be subject to the Federal Alternative Minimum Tax (AMT) for certain
shareholders. Total return was -1.48% per share.**
THE ECONOMY
So far this year, the economic story has been upbeat: solid growth,
strong gains in employment and low inflation. Yet along with this good news
has come the fear that the Federal Reserve Board (the "Fed") will tighten
monetary policy lest the continued economic expansion bring a resurgence in
inflation. The growth in the economy has resulted in strong gains in
employment. Over recent months, these reports of new jobs have been
accompanied by rises in long-term interest rates, a reflection of the market's
concern that inflation perceptions by the Fed would result in its acting to
cool down an economy that risks overheating. To date, the Fed has refrained
from any overt tightening moves. The Fed has cut rates three times between
last July and January of this year, and has since held steady the Federal
Funds rate at 5.25%, even as long-term rates in the bond market have risen
more than a full percentage point.
The interplay between job growth and economic growth has become the
dominant force affecting how investors think of the outlook for inflation and
the possibility that the Fed will raise short-term interest rates. Along with
handsome increases in new jobs have come solid gains in retail sales,
although many economists feel that heavy consumer debt burdens will act as a
constraint against any acceleration in growth. Automobile sales remain
strong, the third year in a row of steady growth for auto manufacturers. What
investors focus on and what concerns the Fed, however, may be two different
things. On June 19, the Fed's Beige Book, a survey of business conditions in
the 12 districts of the Federal Reserve, reported that the economy was
growing at a moderate pace and that despite the tightening labor markets
"indications of rising wages remain scattered." Recent statements by
officials of the Federal Reserve Board have suggested that "sustained
moderate growth" is the most likely path for the economy and that labor
markets, while tightening, do not yet indicate significant inflationary
pressures.
There seem to be few signs of inflation. Commodity and producer prices
remain subdued. Anecdotal reports from companies continue to attest to their
lack of ability to raise prices. Another measure of potential inflation,
delivery lead times - one of Chairman Greenspan's favorite indicators - has
been little changed for months. Furthermore, some of the inflationary
consequences of running large budget deficits have eased due to the growth in
the economy. Higher than expected tax payments - a result of economic growth
- - have reduced the Federal budget deficit to the $130 billion level, the
lowest since the early 1980s.
Nevertheless, there are limits to non-inflationary economic expansion. As
always, we remain watchful for signs of price pressures that could lead to a
resurgence of inflation. For now, there are few indications of that. In fact,
there also appears to be a growing consensus that the rate of economic growth
could taper off in the second half of the year due to the effect of higher
long-term interest rates on certain key sectors of the economy like housing
and consumer spending.
MARKET ENVIRONMENT
The market for fixed income instruments this year has been less favorable
than last year, when double-digit total returns were common. Since January 1,
the bellwether Treasury 30-year bond is off 100 basis points.
Currently, this correction has stabilized and since May 1 the long bond has
remained in a trading range around 7%. Trading activity has been punctuated
by monthly unemployment reports, which have changed or enhanced the market
direction. The municipal bond market, which traditionally needs support from
these general fixed income markets, has defied the pattern and outperformed
them this year. This is a function of three market forces. Primarily, the
threat of a flat tax has abated, removing the need for a related risk premium
on muni yields in case other non-municipal debt were to receive tax exempt
status. Since the likelihood of this occurrence has faded, many municipal
investors who kept their positions were rewarded with better relative
performance. Supply conditions are also favorable. While overall new issuance
is up compared to last year, it is lower in many of the state-specific market
sectors such as New Jersey, and that has kept a floor under the market and
caused it to gap up with investor interest. In addition, a significant
percentage of the municipal bond June/July coupon and maturity payment was
quickly reinvested in the tax exempt market.
THE PORTFOLIO
Despite the aforementioned decline in new issuance of New Jersey bonds,
we continue to be effective in selecting bonds in the remaining secondary
market of previously issued obligations. Our strategy has been to continue to
put together a collection of bonds, some that have strong tax exempt income
properties, some that have strong capital appreciation potential and others
that have some of both. We are actively seeking and evaluating the subtle
characteristics of each bond to improve the portfolio's performance under
different market scenarios. The current balance of the Fund is to slightly
favor income-oriented positions. We feel this still allows for market
appreciation but maintains some defensiveness, which we think is necessary in
case an anticipated Federal Reserve tightening does occur. On average to
date, New Jersey municipal bond funds have outperformed general market
municipal funds.
Our primary task - to earn a high level of current income to the extent
consistent with preservation of capital - continues to guide our portfolio
management decisions.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
July 15, 1996
New York, N.Y.
* Annualized distribution rate per share is based upon dividends per share
paid from net investment income during the period, divided by the net asset
value per share at the end of the period.
**Total return includes reinvestment of dividends and any capital gains paid.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS-99.2% AMOUNT VALUE
__________ __________
<S> <C> <C>
NEW JERSEY-80.6%
Atlantic County Utilities Authority, Solid Waste System Revenue:
7%, 3/1/2008............................................................ $ 4,250,000 $ 4,206,777
7.125%, 3/1/2016........................................................ 6,650,000 6,633,042
Bergen County Utilities Authority, Water Pollution Control System Revenue
5.50%, 12/15/2015 (Insured; FGIC)....................................... 2,500,000 2,437,300
City of Camden:
Zero Coupon, 2/15/2010 (Insured; FSA)................................... 2,500,000 1,151,350
Zero Coupon, 2/15/2012 (Insured; FSA)................................... 4,585,000 1,856,100
Camden County Municipal Utilities Authority, Sewer Revenue:
8.25%, 12/1/2017 (Insured; FGIC)........................................ 2,550,000 2,733,982
8.25%, 12/1/2017 (Prerefunded 12/1/1997) (Insured; FGIC) (a)............ 3,450,000 3,723,964
Refunding 5.125%, 7/15/2017 (Insured; FGIC)............................. 15,000,000 13,769,400
Camden County Pollution Control Financing Authority, Solid Waste Disposal and
Resource Recovery System Revenue 7.50%, 12/1/2010....................... 13,000,000 13,098,670
Delaware River Port Authority, Revenue 5.50%, 1/1/2026 (Insured; FGIC)...... 13,020,000 12,462,223
East Orange:
Zero Coupon, 8/1/2010 (Insured; FSA).................................... 4,240,000 1,902,149
Zero Coupon, 8/1/2011 (Insured; FSA).................................... 2,500,000 1,051,800
Essex County Improvement Authority, Lease Revenue
7%, 12/1/2020 (Prerefunded 12/1/2000) (Insured; AMBAC) (a).............. 4,000,000 4,429,520
Evesham Township Board of Education, COP, Lease Purchase Agreement
6.875%, 9/1/2011 (Insured; FGIC)........................................ 3,050,000 3,304,675
Gloucester Township Municipal Utilities Authority, Revenue
5.65%, 3/1/2018 (Insured; AMBAC)........................................ 2,530,000 2,515,705
Howell Township, Refunding 6.80%, 1/1/2014 (Insured; FGIC).................. 5,000,000 5,380,700
Hudson County Improvement Authority:
Facility Lease Revenue 7.969%, 12/1/2025 (Insured; FGIC) (b,c).......... 13,835,000 13,713,944
MFHR (Conduit Financing - Observer Park Project) 6.90%, 6/1/2022 (Insured; FNMA) 4,190,000 4,352,614
Jersey City, Zero Coupon, 5/15/2010 (Insured; FSA).......................... 4,745,000 2,183,696
Keansburg Board of Education, COP 8%, 11/1/2014 (Prerefunded 11/1/1999) (a). 7,750,000 8,683,565
Manchester Township Board of Education, COP
7.20%, 12/15/2009 (Prerefunded 12/15/1998) (Insured; MBIA) (a).......... 4,175,000 4,535,929
Mercer County Improvement Authority, Revenue, Refunding Insured Solid Waste
(Resource Recovery Project) 6.70%, 4/1/2013 (Insured; FGIC)............. 11,000,000 11,167,750
Monmouth County Improvement Authority, Revenue (Asbury Park Project)
7.375%, 12/1/2009 (Prerefunded 12/1/1999) (a)........................... 3,000,000 3,303,690
Borough of Moonachie Board of Education, COP
6.375%, 3/1/2014 (Lease Purchase Agreement; Lamington Funding Corp.).... 3,775,000 3,777,076
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW JERSEY (CONTINUED)
New Brunswick Parking Authority, Revenue, Refunding
7.125%, 9/1/2015 (Prerefunded 9/1/1999) (Insured; FGIC) (a)............. $ 2,000,000 $2,179,900
State of New Jersey, Refunding 6%, 7/15/2010................................ 7,400,000 7,836,748
New Jersey Building Authority, Building Revenue, Refunding 5%, 6/15/2015.... 4,250,000 3,841,532
New Jersey Economic Development Authority, Revenue:
(Clara Maas Health System Project) 5%, 7/1/2025 (Insured; FSA).......... 4,975,000 4,378,398
(Community Mental Health Loan Program) 8.50%, 7/1/2017.................. 7,485,000 7,988,965
District Heating and Cooling Revenue
(Trigen - Trenton District Energy Co. L.P. Project):
6.10%, 12/1/2004.................................................. 3,375,000 3,455,528
6.20%, 12/1/2007.................................................. 2,725,000 2,731,976
Economic Development:
(American Airlines Inc. Project) 7.10%, 11/1/2031..................... 2,855,000 3,004,745
Refunding:
(Manchester Manor Project) 6.70%, 8/1/2022 (Insured; GNMA)........ 2,500,000 2,579,575
(Stolt Terminals Inc. Project) 10.50%, 1/15/2018.................. 9,440,000 10,439,130
(Tevco Inc. Project) 8.125%, 10/1/2009 (LOC; Credit Lyonnais) (d). 2,500,000 2,679,825
First Mortgage (The Evergreens) 9.25%, 10/1/2022........................ 5,000,000 5,414,550
Waste Paper Recycling (Marcal Paper Mills Inc. Project):
6.25%, 2/1/2009....................................................... 6,605,000 6,626,202
8.50%, 2/1/2010....................................................... 5,850,000 6,522,282
Water Facilities:
(American Water Co. Inc. Project) 6.50%, 4/1/2022 (Insured; FGIC)..... 32,800,000 33,955,544
(Elizabeth Water Co. Project):
6.60%, 8/1/2021................................................... 6,010,000 6,238,200
6.70%, 8/1/2021................................................... 3,965,000 4,102,784
New Jersey Educational Facilities Authority, Revenue:
(Seton Hall University Project):
6.85%, 7/1/2019 (Insured; BIGI)....................................... 9,050,000 9,617,254
7%, 7/1/2021.......................................................... 3,500,000 3,652,145
(Trenton State College)
7.125%, 7/1/2009 (Prerefunded 7/1/1999) (Insured; AMBAC) (a).......... 4,000,000 4,362,920
New Jersey Health Care Facilities Financing Authority, Revenue:
(Deborah Heart and Lung Center Issue) 6.30%, 7/1/2023................... 1,500,000 1,494,780
Health System (Franciscan Sisters of the Poor - Health Systems, Inc.,
Saint Mary's Hospital) 5.875%, 7/1/2012 (Insured; MBIA)............... 3,250,000 3,077,522
(Kennedy Memorial Hospital University Medical Center) 6%, 7/1/2020...... 4,115,000 3,892,790
(Kimball Medical Center) 8%, 7/1/2013................................... 13,000,000 13,677,430
(Medical Center of Ocean County) 6.75%, 7/1/2020 (Insured; FSA)......... 1,980,000 2,108,720
(Palisades Medical Center):
7.50%, 7/1/2006....................................................... 2,300,000 2,319,757
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW JERSEY (CONTINUED)
New Jersey Health Care Facilities Financing Authority, Revenue (continued):
(Palisades Medical Center) (continued):
7.60%, 7/1/2021....................................................... $2,350,000 $2,359,729
(Raritan Bay Medical Center) 7.25%, 7/1/2014............................ 13,000,000 13,306,020
(Refunding - Atlantic City Medical Center) 6.80%, 7/1/2011.............. 2,500,000 2,660,800
(Saint Peter's Medical Center)
6%, 7/1/2021 (Prerefunded 7/1/2001) (Insured; MBIA) (a)............... 1,500,000 1,582,350
New Jersey Housing and Mortgage Finance Agency, Revenue:
Multi-Family Housing, Refunding (Presidential Plaza at Newport Project)
7%, 5/1/2030 (Insured; FHA)........................................... 5,000,000 5,211,550
Rental Housing 6.75%, 11/1/2022......................................... 9,310,000 9,508,396
New Jersey Transit Corp., Lease Purchase Agreement, COP (Raymond Plaza East
Inc.)
6.50%, 10/1/2016 (Insured; FSA)......................................... 3,945,000 4,179,728
New Jersey Transportation Trust Fund Authority, Refunding (Transportation
System):
6.50%, 6/15/2011 (Insured: MBIA)........................................ 11,000,000 12,153,240
7%, 6/15/2012 (Insured: MBIA)........................................... 6,000,000 6,937,500
5%, 6/15/2015 (Insured; MBIA)........................................... 15,000,000 13,800,150
New Jersey Turnpike Authority, Turnpike Revenue, Refunding 6.50%, 1/1/2016.. 14,665,000 15,738,625
North Jersey District Water Supply Commission
(Wanaque South Project) 6%, 7/1/2019 (Insured; MBIA).................... 2,000,000 2,064,640
Ocean County Pollution Control Financing Authority, PCR, Refunding
(Ciba Geigy Corp. Project) 6%, 5/1/2020................................. 11,700,000 11,850,930
Passaic County Utilities Authority, Solid Waste System Revenue 7%, 11/15/2007 5,000,000 4,865,650
Port Authority of New York and New Jersey:
(Consolidated Board 73rd Series) 6.75%, 4/15/2026....................... 9,000,000 9,492,390
(Consolidated Board 89th Series) 5.125%, 10/1/2021...................... 10,000,000 9,018,200
(Delta Airlines Inc. Project) 6.95%, 6/1/2008........................... 7,200,000 7,539,120
Special Obligation Revenue (Continental-Eastern LaGuardia Project)
9.125%, 12/1/2015..................................................... 6,500,000 7,225,920
Salem County Improvement Authority, Revenue (County Correctional Facility and
Court House) 7.125%, 5/1/2017 (Prerefunded 5/1/1999) (Insured; AMBAC) (a) 2,000,000 2,176,180
Salem County Industrial Pollution Control Financing Authority, Revenue
Pollution Control (Public Service Electric and Gas Co.)
5.45%, 2/1/2032 (Insured; MBIA)......................................... 5,500,000 5,106,255
Southeast Morris County Municipal Utilities Authority, Water Revenue
6.50%, 1/1/2011 (Insured; FGIC)......................................... 1,475,000 1,551,892
University of Medicine and Dentistry 7.20%, 12/1/2019 (Prerefunded 12/1/1999) (a) 5,710,000 6,268,153
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE
_______ _______
NEW JERSEY (CONTINUED)
West Monmouth Utilities Authority, Revenue, Refunding
5.60%, 2/1/2014 (Insured; AMBAC)........................................ $ 2,190,000 $ 2,155,004
West New York Municipal Utilities Authority, Sewer Revenue, Refunding
7.30%, 12/15/2017 (Prerefunded 12/15/2000) (Insured; FGIC) (a).......... 6,250,000 6,999,188
West Windsor Plainsboro Regional School District:
5.50%, 12/1/2015 (Insured; FGIC)........................................ 2,700,000 2,638,467
5.50%, 12/1/2016 (Insured; FGIC)........................................ 2,700,000 2,636,793
5.50%, 12/1/2017 (Insured; FGIC)........................................ 2,700,000 2,635,173
5.50%, 12/1/2018 (Insured; FGIC)........................................ 2,700,000 2,620,350
5.50%, 12/1/2019 (Insured; FGIC)........................................ 2,700,000 2,608,524
5.50%, 12/1/2020 (Insured; FGIC)........................................ 2,700,000 2,606,715
U.S. RELATED-18.6%
Commonwealth of Puerto Rico:
5.50%, 7/1/2013......................................................... 4,500,000 4,299,075
5.65%, 7/1/2015 (Insured; MBIA)......................................... 2,000,000 2,012,760
7.30%, 7/1/2020 (Prerefunded 7/1/2000) (a).............................. 10,850,000 12,113,591
5.40%, 7/1/2025......................................................... 21,300,000 19,731,681
Public Improvement 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (a)........... 4,400,000 4,934,864
Refunding 5.375%, 7/1/2022 (Insured; MBIA).............................. 6,500,000 6,152,185
Puerto Rico Aqueduct and Sewer Authority, Revenue, Refunding 5%, 7/1/2019... 7,225,000 6,374,834
Puerto Rico Electric Power Authority, Power Revenue, Refunding
5.50%, 7/1/2025......................................................... 6,500,000 6,119,425
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6.42%, 7/1/2007 (b)..................................................... 11,100,000 10,489,500
6.351%, 7/1/2009 (b).................................................... 2,950,000 2,688,188
7.75%, 7/1/2016 (Prerefunded 7/1/2000) (a).............................. 3,460,000 3,919,972
6.625%, Series S, 7/1/2018 (Prerefunded 7/1/2002) (a)................... 9,400,000 10,457,312
6.625%, Series T, 7/1/2018 (Prerefunded 7/1/2002) (a)................... 2,550,000 2,831,173
5%, 7/1/2022............................................................ 2,500,000 2,171,375
5%, 7/1/2036............................................................ 8,000,000 6,861,040
Puerto Rico Public Building Authority, Guaranteed Public Education and Health
Facilities Refunding 5.75%, 7/1/2015
(Guaranteed; Commonwealth of Puerto Rico)............................... 2,500,000 2,442,125
University of Puerto Rico, University Revenues
5.25%, 6/1/2025 (Insured; MBIA)......................................... 5,100,000 4,725,456
___________
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $561,493,666)..................................................... $578,377,011
==============
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) JUNE 30, 1996 (UNAUDITED)
PRINCIPAL
SHORT-TERM MUNICIPAL INVESTMENTS-.8% AMOUNT VALUE
_______ _______
NEW JERSEY:
New Jersey Economic Development Authority, Revenue, VRDN:
Industrial and Economic Development (Merck and Co. Project)
3.55% (LOC; Bankers Trust Co.) (d,e).................................. $ 1,300,000 $ 1,300,000
Pollution Control:
(Hoffman - LaRoche Inc. Project) 3.30% (e)............................ 2,800,000 2,800,000
(Merck and Co. Project) 3.80% (e)..................................... 800,000 800,000
__________
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $4,900,000)....................................................... $ 4,900,000
==============
TOTAL INVESTMENTS-100.0%
(cost $566,393,666)..................................................... $583,277,011
==============
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation GNMA Government National Mortgage Association
BIGI Bond Investors Guaranty Insurance LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
FSA Financial Security Assurance VRDN Variable Rate Demand Notes
</TABLE>
<TABLE>
<CAPTION>
SUMMARY OF COMBINED RATINGS (UNAUDITED)
<S> <C> <C> <C>
FITCH (F) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
_____ _______ __________________ ____________________
AAA Aaa AAA 47.6%
AA Aa AA 8.3
A A A 22.2
BBB Baa BBB 8.5
BB Ba BB 2.9
B B B 1.3
F1 Mig1 SP1 .1
Not Rated (g) Not Rated (g) Not Rated (g) 9.1
________
100.0%
=========
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b) Inverse floater security - the interest is subject to change
periodically.
(c) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At June 30,
1996, this security amounted to $13,713,944 or 2.2% of net assets.
(d) Secured by letter of credit.
(e) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(f) Fitch currently provides creditworthiness information for a limited
number of investments.
(g) Securities which, while not rated by Fitch, Moody's and Standard &
Poor's, have been determined by the Manager to be of comparable quality
to those rated securities in which the Fund may invest.
See independent accountants' review report and notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $566,393,666)-see statement..................................... $583,277,011
Cash.................................................................... 27,361,224
Interest receivable..................................................... 11,630,491
Receivable for shares of Common Stock sold.............................. 3,000,000
Prepaid expenses........................................................ 12,244
____________
625,280,970
LIABILITIES:
Due to The Dreyfus Corporation and affiliates........................... $363,245
Due to Distributor...................................................... 8,438
Accrued expenses........................................................ 78,015 449,698
____________ ____________
NET ASSETS ................................................................ $624,831,272
=============
REPRESENTED BY:
Paid-in capital......................................................... $599,274,666
Accumulated undistributed investment income-net......................... 172,030
Accumulated undistributed net realized gain on investments.............. 8,501,231
Accumulated net unrealized appreciation on investments-Note 3........... 16,883,345
____________
NET ASSETS at value applicable to 48,211,947 shares outstanding
(500 million shares of $.001 par value Common Stock authorized)......... $624,831,272
=============
NET ASSET VALUE, offering and redemption price per share
($624,831,272 / 48,211,947 shares)...................................... $12.96
========
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 19,453,855
EXPENSES:
Management fee-Note 2(a).............................................. $ 1,846,306
Shareholder servicing costs-Note 2(b)................................. 927,275
Custodian fees........................................................ 28,585
Professional fees..................................................... 28,576
Directors' fees and expenses-Note 2(c)................................ 19,462
Prospectus and shareholders' reports-Note 2(b)........................ 14,522
Registration fees..................................................... 1,382
Miscellaneous......................................................... 18,356
__________
TOTAL EXPENSES.................................................. 2,884,464
Less-reduction in management fee
due to undertaking-Note 2(a)...................................... 422,723
__________
NET EXPENSES.................................................... 2,461,741
__________
INVESTMENT INCOME-NET........................................... 16,992,114
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized gain on investments-Note 3................................. $ 6,211,710
Net unrealized (depreciation) on investments............................ (32,463,217)
__________
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS............... (26,251,507)
__________
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (9,259,393)
==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
DECEMBER 31, JUNE 30, 1996
1995 (UNAUDITED)
___________ ________________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 35,059,403 $ 16,992,114
Net realized gain on investments.................................. 4,018,796 6,211,710
Net unrealized appreciation (depreciation) on investments for the period 49,285,419 (32,463,217)
___________ ____________
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS. 88,363,618 (9,259,393)
___________ ____________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................. (34,967,410) (17,006,054)
Net realized gain on investments.................................. (187,311) -
___________ ____________
TOTAL DIVIDENDS................................................. (35,154,721) (17,006,054)
___________ ____________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 345,417,332 302,629,708
Dividends reinvested.............................................. 26,626,785 12,781,310
Cost of shares redeemed........................................... (348,941,494) (318,150,602)
___________ ____________
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 23,102,623 (2,739,584)
___________ ____________
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... 76,311,520 (29,005,031)
NET ASSETS:
Beginning of period............................................... 577,524,783 653,836,303
___________ ____________
End of period (including undistributed investment income-net:
$185,970 in 1995 and $172,030 in 1996).......................... $ 653,836,303 $ 624,831,272
============= ==============
SHARES SHARES
___________ ______________
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 26,279,832 23,126,766
Shares issued for dividends reinvested............................ 2,027,922 974,869
Shares redeemed................................................... (26,516,887) (24,220,992)
___________ _____________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING................... 1,790,867 (119,357)
============= ==============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED
_______________________________________________ JUNE 30, 1996
PER SHARE DATA: 1991 1992 1993 1994 1995 (UNAUDITED)
______ ______ ______ ______ ______ ______________
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $12.47 $13.06 $13.17 $14.03 $12.41 $13.53
______ ______ ______ ______ ______ _______
INVESTMENT OPERATIONS:
Investment income-net................. .81 .80 .79 .78 .74 .36
Net realized and unrealized gain (loss)
on investments...................... .63 .31 .88 (1.61) 1.12 (.57)
______ ______ ______ ______ ______ _______
TOTAL FROM INVESTMENT OPERATIONS.... 1.44 1.11 1.67 (.83) 1.86 (.21)
______ ______ ______ ______ ______ _______
DISTRIBUTIONS:
Dividends from investment income-net.. (.81) (.80) (.79) (.77) (.74) (.36)
Dividends from net realized gain
on investments...................... (.04) (.20) (.02) - (.00)(1) -
Dividends in excess of net realized gain
on investments...................... - - - (.02) - -
______ ______ ______ ______ ______ _______
TOTAL DISTRIBUTIONS................. (.85) (1.00) (.81) (.79) (.74) (.36)
______ ______ ______ ______ ______ _______
Net asset value, end of period........ $13.06 $13.17 $14.03 $12.41 $13.53 $12.96
====== ======= ====== ====== ====== ========
TOTAL INVESTMENT RETURN................... 11.95% 8.77% 12.97% (6.02%) 15.29% (2.97%)(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .75% .73% .72% .77% .80% .80%(2)
Ratio of net investment income to
average net assets.................. 6.36% 6.06% 5.74% 5.94% 5.67% 5.52%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .25% .25% .25% .20% .15% .14%(2)
Portfolio Turnover Rate............... 22.53% 33.58% 6.05% 10.02% 24.37% 15.37%(3)
Net Assets, end of period (000's Omitted) $515,706 $614,529 $725,815 $577,525 $653,836 $624,831
(1) Amount represents less than $.01 per share.
(2) Annualized.
(3) Not annualized.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus New Jersey Municipal Bond Fund, Inc. (the "Fund") is registered
under the Investment Company Act of 1940 ("Act") as a non-diversified
open-end management investment company. The Fund's investment objective is to
provide investors with as high a level of current income exempt from Federal
and New Jersey income taxes as is consistent with the preservation of
capital. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. Premier
Mutual Fund Services, Inc. (the "Distributor") acts as the distributor of the
Fund's shares, which are sold to the public without a sales load.
(A) PORTFOLIO VALUATION: The Fund's investments are valued each business
day by an independent pricing service ("Service") approved by the Fund's
Board of Directors. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.
The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations
held by the Fund.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends from investment income-net on each business day. Such dividends are
paid monthly. Dividends from net realized capital gain are normally declared
and paid annually, but the Fund may make distributions on a more frequent
basis to comply with the distribution requirements of the Internal Revenue
Code. To the extent that net realized capital gain can be offset by capital
loss carryovers, if any, it is the policy of the Fund not to distribute such
gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .60 of 1% of the value
of the Fund's average daily net assets and is
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
payable monthly. The Agreement provides for an expense reimbursement from the
Manager should the Fund's aggregate expenses, exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses, exceed 1-1\2% of the value
of the Fund's average net assets for any full year. However, the Manager has
undertaken from January 1, 1996 through December 31, 1996, to reduce the
management fee paid by, or reimburse such excess expenses of the Fund, to the
extent that the Fund's aggregate annual expenses (exclusive of certain
expenses as described above) exceed an annual rate of .80 of 1% of the value
of the Fund's average daily net assets. The reduction in management fee,
pursuant to the undertaking, amounted to $422,723 during the six months ended
June 30, 1996.
The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.
(B) Under the Service Plan (the "Plan") adopted pursuant to Rule 12b-1
under the Act, the Fund (a) reimburses the Distributor for payments to
certain Service Agents (a securities dealer, financial institution or other
industry professional) for distributing the Fund's shares and servicing
shareholder accounts ("Servicing") and (b) pays the Manager, Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, and any affiliate of
either of them (collectively, "Dreyfus") for advertising and marketing
relating to the Fund and for Servicing at an aggregate annual rate of .25 of
1% of the value of the Fund's average daily net assets. Both the Distributor
and Dreyfus may pay Service Agents a fee in respect of the Fund's shares
owned by shareholders with whom the Service Agent has a Servicing
relationship or for whom the Service Agent is the dealer or holder of record.
Both the Distributor and Dreyfus determine the amounts to be paid to Service
Agents to which they will make payments and the basis on which such payments
are made. The Plan also separately provides for the Fund to bear the costs of
preparing, printing and distributing certain of the Fund's prospectuses and
statements of additional information and costs associated with implementing
and operating the Plan, not to exceed the greater of $100,000 or .005 of 1%
of the Fund's average daily net assets for any full year. During the six
months ended June 30, 1996, $769,730 was charged to the Fund pursuant to the
Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $115,156, during the six months ended June 30, 1996.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the six months ended June 30, 1996,
amounted to $93,255,035 and $112,776,039, respectively.
At June 30, 1996, accumulated net unrealized appreciation on investments
was $16,883,345, consisting of $22,471,049 gross unrealized appreciation and
$5,587,704 gross unrealized depreciation.
At June 30, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see
the Statement of Investments).
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS NEW JERSEY MUNICIPAL BOND FUND, INC.
We have reviewed the accompanying statement of assets and liabilities of
Dreyfus New Jersey Municipal Bond Fund, Inc., including the statement of
investments, as of June 30, 1996, and the related statements of operations
and changes in net assets and financial highlights for the six month period
ended June 30, 1996. These financial statements and financial highlights are
the responsibility of the Fund's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsible for financial
and accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards, which
will be performed for the full year with the objective of expressing an
opinion regarding the financial statements and financial highlights taken as
a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the interim financial statements and financial highlights
referred to above for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the statement of changes in net assets for the year ended
December 31, 1995 and financial highlights for each of the five years in the
period ended December 31, 1995 and in our report dated February 9, 1996, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
[Ernst & Young LLP signature logo]
New York, New York
July 29, 1996
[Dreyfus lion "d" logo]
DREYFUS NEW JERSEY MUNICIPAL
BOND FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 750SA966
[Dreyfus logo]
New Jersey
Municipal
Bond Fund, Inc.
Semi-Annual
Report
June 30, 1996
