<PAGE>
MORGAN STANLEY
GLOBAL OPPORTUNITY BOND FUND, INC.
- --------------------------------------------------------------------------------
DIRECTORS AND OFFICERS
Barton M. Biggs William G. Morton, Jr.
CHAIRMAN OF THE BOARD DIRECTOR
OF DIRECTORS
Michael F. Klein Stefanie V. Chang
PRESIDENT AND DIRECTOR VICE PRESIDENT
Peter J. Chase Harold J. Schaaff, Jr.
DIRECTOR VICE PRESIDENT
John W. Croghan Joseph P. Stadler
DIRECTOR VICE PRESIDENT
David B. Gill Valerie Y. Lewis
DIRECTOR SECRETARY
Graham E. Jones Joanna M. Haigney
DIRECTOR TREASURER
John A. Levin Belinda A. Brady
DIRECTOR ASSISTANT TREASURER
- --------------------------------------------------------------------------------
INVESTMENT ADVISER
Morgan Stanley Asset Management Inc.
1221 Avenue of the Americas
New York, New York 10020
- --------------------------------------------------------------------------------
ADMINISTRATOR
The Chase Manhattan Bank
73 Tremont Street
Boston, Massachusetts 02108
- --------------------------------------------------------------------------------
CUSTODIANS
Morgan Stanley Trust Company
One Pierrepont Plaza
Brooklyn, New York 11201
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, New York 11245
- --------------------------------------------------------------------------------
SHAREHOLDER SERVICING AGENT
American Stock Transfer & Trust Company
40 Wall Street
New York, New York 10005
(800) 278-4353
- --------------------------------------------------------------------------------
LEGAL COUNSEL
Rogers & Wells LLP
200 Park Avenue
New York, New York 10166
- --------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036
- --------------------------------------------------------------------------------
For additional Fund information, including the Fund's net asset value per share
and information regarding the investments comprising the Fund's portfolio,
please call 1-800-221-6726.
- --------------------------------------------------------------------------------
MORGAN STANLEY
GLOBAL OPPORTUNITY
BOND FUND, INC.
- -------------------------------------------------------------------------------
FIRST QUARTER REPORT
MARCH 31, 1998
MORGAN STANLEY ASSET MANAGEMENT INC.
INVESTMENT ADVISER
<PAGE>
LETTER TO SHAREHOLDERS
- -----------
For the three months ended March 31, 1998, the Morgan Stanley Global Opportunity
Bond Fund, Inc. (the "Fund") had a total return, based on net asset value per
share, of 5.68% compared to 4.06% for the Fund's benchmark (described below).
For the one year ended March 31, 1998, the Fund had a total return, based on net
asset value per share, of 20.45% compared with 15.53% for the benchmark. For the
period since the Fund's commencement of operations on May 27, 1994 through March
31, 1998, the Fund's total return, based on net asset value per share, was
83.66% compared with 69.10% for the benchmark. The Fund uses as its benchmark,
for the purpose of comparing its performance, a composite comprised of 25% of
the JP Morgan Latin Euro Bond Index, 25% of the JP Morgan Emerging Markets Bond
Plus Index, and 50% of the CS First Boston High Yield Index. Prior to 1997, the
Fund used a composite comprised of 50% of the J.P. Morgan Emerging Markets Bond
Plus Index and 50% of the CS First Boston High Yield Index. However, the Fund's
weighting in these asset classes is not restricted and will, under normal
circumstances, fluctuate depending on market conditions. At March 31, 1998 the
Fund's investment in debt instruments was comprised of 73.1% of emerging markets
debt securities and 26.9% U.S. high yield securities.
During the first quarter of 1998, the Portfolio's outperformance was primarily
due to strong results in emerging market debt and non-U.S. corporates, led by
Korea as well as continued superior performance in the communications sector.
The international backdrop for emerging market debt improved during the first
quarter. Stabilization occurred as the South Koreans agreed on a bank debt
rescheduling and other emerging countries accelerated much needed structural
reforms to avoid the "Asian Flu".
During the quarter we reduced the Fund's exposure to Russia as President
Yeltsin's decision to sack his cabinet increased political uncertainty. We
increased the portfolio's exposure to Brazil, which should benefit from
privatization and direct investment flows.
The emerging market's strong performance year-to-date is a cause for some
concern as we believe that investors may be overly optimistic in their analysis
of the rebound in the Asian economies. Continued economic weakness in Japan,
combined with lower commodity prices and a heavy election may limit spread
tightening.
In the U.S. high yield portion of the Fund's portfolio there were no significant
changes in sector weightings. We continue to see value in the communication
industry as well as selected non-U.S. issuers. We believe the U.S. economic and
financial environment continues to be favorable for the credit quality of high-
yield issuers. Yield spreads remain historically narrow, and we continue to
emphasize above-average credit quality in the portfolio. Additionally, we
intend to maintain interest rate sensitivity which is no longer than that of the
benchmark.
Sincerely,
/s/ Michael F. Klein
Michael F. Klein
PRESIDENT AND DIRECTOR
/s/ Robert E. Angevine
Robert E. Angevine
PORTFOLIO MANAGER
/s/ Paul Ghaffari
Paul Ghaffari
PORTFOLIO MANAGER
April 1998
2
<PAGE>
Morgan Stanley Global Opportunity Bond Fund, Inc.
Investment Summary as of March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HISTORICAL TOTAL RETURN (%)
INFORMATION -----------------------------------------------------------------------
MARKET VALUE (1) NET ASSET VALUE (2) INDEX (3)
--------------------- -------------------- ---------------------
AVERAGE AVERAGE AVERAGE
CUMULATIVE ANNUAL CUMULATIVE ANNUAL CUMULATIVE ANNUAL
---------- ------ ---------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
FISCAL YEAR TO DATE 5.59% -- 5.68% -- 4.06% --
ONE YEAR 16.29 16.28% 20.45 20.45% 15.53 15.53%
SINCE INCEPTION* 75.29 15.71 83.66 17.12 69.10 14.64
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
- --------------------------------------------------------------------------------
RETURNS AND PER SHARE INFORMATION
[GRAPH]
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31: THREE MONTHS
ENDED
MARCH 31,
1994* 1995 1996 1997 1998
------ ------ ------ ------ ------------
<S> <C> <C> <C> <C> <C>
Net Asset Value per Share. . . . . $12.25 $12.99 $14.86 $13.74 $14.21
Market Value per Share . . . . . . $12.50 $12.50 $14.63 $13.13 $13.56
Premium/(Discount) . . . . . . . . 2.0% -3.8% -1.5% -4.4% -4.6%
Income Dividends . . . . . . . . . $ 0.91 $ 1.59 $ 1.49 $ 1.30 $ 0.30
Capital Gains Distributions. . . . -- -- $ 0.50 $ 2.30 --
Fund Total Return (2). . . . . . . -6.42% 20.34% 31.45% 17.38% 5.68%
Index Total Return (3) . . . . . . -0.46% 22.37% 25.36% 12.56% 4.06%
</TABLE>
(1) Assumes dividends and distributions, if any, were reinvested.
(2) Total investment return based on net asset value per share reflects the
effects of changes in net asset value on the performance of the Fund during
each period, and assumes dividends and distributions, if any, were
reinvested. These percentages are not an indication of the performance of a
shareholder's investment in the Fund based on market value due to
differences between the market price of the stock and the net asset value
per share of the Fund.
(3) The Global Opportunity Blended Composite is comprised of 25% of the JP
Morgan Latin Euro Bond Index, 25% of the JP Morgan Emerging Markets Bond
Plus Index, and 50% of the CS First Boston High Yield Index. Prior to 1997,
the Fund used a composite comprised of 50% of the J.P. Morgan Emerging
Markets Bond Plus Index and 50% of the CS First Boston High Yield Index.
However, the Fund's weighting in these asset classes is not restricted and
will, under normal circumstances, fluctuate depending on market conditions.
As of March 31, 1998, the Fund's investment in debt instruments was
comprised of 73.1% emerging markets debt securities and 26.9% U.S. high
yield securities.
* The Fund commenced operations on May 27, 1994.
3
<PAGE>
Morgan Stanley Global Opportunity Bond Fund, Inc.
Portfolio Summary as of March 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
DIVERSIFICATION OF TOTAL INVESTMENTS
[CHART]
<TABLE>
<S> <C>
Debt Securities 95.2%
Equity Securities 0.5%
Short-Term Investments 4.3%
</TABLE>
- --------------------------------------------------------------------------------
COUNTRY WEIGHTINGS
[CHART]
<TABLE>
<S> <C>
Argentina (11.6%)
Brazil (23.2%)
Indonesia (4.1%)
Korea (2.3%)
Mexico (8.5%)
Other (-1.0%)
Philippines (1.6%)
Russia (13.1%)
Turkey (3.9%)
United States (27.5%)
Venezuela (5.2%)
</TABLE>
- --------------------------------------------------------------------------------
TEN LARGEST HOLDINGS
<TABLE>
<CAPTION>
PERCENT OF
NET ASSETS
----------
<S> <C>
1. Federative Republic of Brazil 'C' Bond PIK
8.00% 4/15/14 9.8%
2. Russia Principal Note, PIK 3.249%, 12/15/20 5.7
3. Federative Republic of Brazil Global Bond
10.125%, 5/15/27 4.8
4. Federative Republic of Brazil 'EL-L' Bond
6.688%, 4/15/06 4.4
5. Salomon Brothers Federative Republic of Brazil
Credit Linked Enhanced Note 9.00%, 1/15/99 4.1
6. Ministry of Finance, Series IV
3.00%, 5/14/03 (Russia) 3.3
7. Republic of Argentina Global Bond
11.375%, 1/30/17 3.1
8. United Mexican States 11.50%, 5/15/26 2.9
9. Republic of Venezuela Debt Conversion Bond
'DL' 6.813%, 12/18/07 2.6
10. CIA International Telecom 144A 10.375%,
8/1/04 (Argentina) 2.3
----
43.0%
----
----
</TABLE>
4
<PAGE>
INVESTMENTS (UNAUDITED)
- --------
MARCH 31, 1998
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DEBT INSTRUMENTS (98.7%)
- ------------------------------------------------------------------------------
ARGENTINA (11.6%)
BONDS (11.6%)
Acindar Industries
11.656%, 11/12/98 U.S.$ 600 U.S.$ 609
CIA International Telecom
10.375%, 8/1/04 ARP 1,500 1,376
Republic of Argentina
6.625%, 3/31/05 U.S.$ 998 921
Republic of Argentina
11.75%, 2/12/07 ARP 550 573
Republic of Argentina
Global Bond
11.375%, 1/30/17 U.S.$ 1,600 1,812
9.75%, 9/19/27 1,200 1,190
Republic of Argentina Par
Bond 'L-GP'
5.75%, 3/31/23 550 422
-------------
6,903
-------------
- ------------------------------------------------------------------------------
BRAZIL (19.1%)
BONDS (19.1%)
Federative Republic of Brazil
'C' Bond PIK
8.00%, 4/15/14 6,876 5,789
Federative Republic of Brazil
'EI-L' Bond
6.688%, 4/15/06 2,891 2,611
Federative Republic of Brazil
Global Bond
10.125%, 5/15/27 2,860 2,845
Globopar
10.50%, 12/20/06 80 81
-------------
11,326
-------------
- ------------------------------------------------------------------------------
BULGARIA (1.3%)
BONDS (1.3%)
Republic of Bulgaria Front
Loaded Interest
Reduction Bond
2.25%, 7/28/12 450 301
Republic of Bulgaria Past
Due Interest Bond
6.563%, 7/28/11 600 470
-------------
771
-------------
- ------------------------------------------------------------------------------
ECUADOR (1.4%)
BONDS (1.4%)
Conecel
14.00%, 5/1/02 500 525
The Republic of Ecuador Par Bond
3.50%, 2/28/25 600 330
-------------
855
-------------
- ------------------------------------------------------------------------------
INDONESIA (4.1%)
BONDS (4.1%)
APP International Finance
8.867%, 9/15/99 U.S.$ 400 U.S.$ 340
10.25%, 10/1/00 300 287
Hermes Europe Railtel, B.V.
11.50%, 8/15/07 140 158
Indah Kiat International
Finance Global Bond 'A'
11.375%, 6/15/99 300 282
Pindo Deli Finance (Mauritius )
10.75%, 10/1/07 400 331
Tjiwi Kimia International
Global Bond
13.25%, 8/1/01 1,100 1,010
-------------
2,408
-------------
- ------------------------------------------------------------------------------
IVORY COAST (0.8%)
BONDS (0.8%)
Republic of Ivory Coast
Front Loaded Interest
Reduction Bond
2.00%, 3/29/18 FRF 4,440 269
Republic of Ivory Coast Past
Due Interest Bond
1.90%, 3/29/18 2,945 207
-------------
476
-------------
- ------------------------------------------------------------------------------
JAMAICA (1.6%)
BONDS (1.6%)
Mechala Group Jamaica, LTD. 'B'
12.75%, 12/30/99 U.S.$ 1,000 930
-------------
- ------------------------------------------------------------------------------
KOREA (2.3%)
BONDS (2.3%)
Export-Import Bank of Korea
6.50%, 10/6/99 1,400 1,347
-------------
- ------------------------------------------------------------------------------
MEXICO (8.5%)
BONDS (8.5%)
Empresas ICA Sociedad
Controladora
11.875%, 5/30/01 1,000 1,085
Innova
12.875%, 4/1/07 350 374
National Financiera
17.00%, 2/26/99 ZAR 4,000 798
United Mexican States
11.50%, 5/15/26 U.S.$ 1,400 1,706
United Mexican States
Discount Bond
6.617%, 12/31/19 250 236
United Mexican States
Discount Bond 'D'
6.75%, 12/31/19 300 283
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
MEXICO (CONTINUED)
United Mexican States
Global Bond
9.875%, 1/15/07 U.S.$ 200 U.S.$ 216
11.375%, 9/15/16 300 353
-------------
5,051
-------------
- ------------------------------------------------------------------------------
NIGERIA (0.6%)
BONDS (0.6%)
Central Bank of Nigeria Par Bond
6.25%, 11/15/20 500 366
-------------
- ------------------------------------------------------------------------------
PERU (0.8%)
BONDS (0.8%)
Republic of Peru Front Loaded
Interest Reduction Bond
3.25%, 3/7/17 700 441
-------------
- ------------------------------------------------------------------------------
PHILIPPINES (0.4%)
BONDS (0.4%)
Bangko Sentral Pilipinas
8.60%, 6/15/27 250 228
-------------
- ------------------------------------------------------------------------------
RUSSIA (13.1%)
BONDS (4.8%)
Ministry of Finance, Series IV
3.00%, 5/14/03 2,850 1,982
Ministry of Finance
10.00%, 6/26/07 450 431
Unexim International Finance
9.875%, 8/1/00 500 465
-------------
2,878
-------------
NOTES (8.3%)
Russia Interest Arrears Notes
6.719%, 12/15/15 2,165 1,538
Russia Principal Note, PIK
3.249%, 12/15/20 5,300 3,376
-------------
4,914
-------------
7,792
-------------
- ------------------------------------------------------------------------------
TURKEY (1.4%)
BONDS (1.4%)
Pera Financial Services
9.375%, 10/15/02 900 849
-------------
- ------------------------------------------------------------------------------
UNITED STATES (26.5%)
ASSET - BACKED SECURITIES (2.4%)
Aircraft Lease Portfolio
Securitization LTD.
1996-1 P1D 12.75%, 6/15/06 374 375
CFS 1997-5 'A1'
7.72%, 6/15/05 266 267
DR Securitized Lease Trust
1994-K1 A1 7.60%, 8/15/07 443 436
1993-K1 A1 6.66%, 8/15/10 153 142
First Home Mortgage Acceptance
Corp., 1996-B, Class C
7.929%, 11/1/18 U.S.$ 243 U.S.$ 217
-------------
1,437
-------------
BONDS (23.6%)
Advanced Micro Devices, Inc.
11.00%, 8/1/03 495 530
AES Corp.
8.50%, 11/1/07 165 171
American Mobile Satellite Corp.
12.25%, 4/1/08 -@ 135
American Standard Companies Inc.
7.375%, 2/1/08 195 192
Ameriserve Food Co.
8.875%, 10/15/06 200 206
10.125%, 7/15/07 85 91
Brooks Fiber Properties
0.00%, 3/1/06 200 174
CA FM Lease Trust
8.50%, 7/15/17 243 254
Columbia/HCA Healthcare
6.91%, 6/15/05 450 423
7.00%, 7/1/07 90 84
Comcast Cellular Holdings 'B'
9.50%, 5/1/07 265 281
Criimi Mae Inc.
9.125%, 12/1/02 200 202
CSC Holdings Inc.
7.875%, 12/15/07 100 103
9.875%, 5/15/06 205 224
EES Coke Battery Co., Inc.
9.382%, 4/15/07 100 104
Fox/Liberty Networks LLC
0.00%, 8/15/07 410 279
8.875%, 8/15/07 80 83
Fresenius Medical Care AG
7.875%, 2/1/08 85 85
Globalstar LP
11.375%, 2/15/04 165 173
Grand Casinos
10.125%, 12/1/03 400 436
HMC Acquisition Properties
9.00%, 12/15/07 350 372
IBJ Preferred Capital Company
8.79%, 12/29/49 105 101
Integrated Health Services
9.50%, 9/15/07 500 531
Intermedia Communications
0.00%, 7/15/07 295 222
ISP Holdings, Inc. 'B'
9.00%, 10/15/03 295 310
IXC Communications, Inc.
12.50%, 10/1/05 175 208
IXC Communications, Inc. 'B'
Pik 0.00%, 1/1/01 -@ 5
Jet Equipment Trust
'C1' 11.79%, 6/15/13 175 236
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
UNITED STATES (CONTINUED)
K Mart Funding Corp. 'F'
8.80%, 7/1/10 U.S.$ 100 U.S.$ 103
Lenfest Communications
8.375%, 11/1/05 335 349
Magellan Health Services
9.00%, 2/15/08 95 96
Midland Funding Corp. I 'C-94'
10.33%, 7/23/02 156 170
Midland Funding Corp. II 'A'
11.75%, 7/23/05 80 95
Navistar Financial Corp. 'B'
9.00%, 6/1/02 65 68
(a)Nextel Communications, Inc.
0.00%, 8/15/04 635 611
Nextlink Communications
9.45%, 4/15/08 185 117
Norcal Waste Systems Inc.
13.50%, 11/15/05 250 290
NSM Steel LTD.
12.25%, 2/1/08 150 144
Nuevo Energy Co.
9.50%, 4/15/06 240 256
Outdoor Systems Inc.
8.875%, 6/15/07 410 431
Pharmerica, Inc.
8.375%, 4/1/08 80 80
Qwest Communications International
10.875%, 4/1/07 135 157
RCN Corp.
0.00%, 10/15/07 300 201
Revlon Worldwide Corp.
8.125%, 2/2/06 165 167
Rogers Cablesystems 'B'
10.00%, 3/15/05 425 476
Rogers Communications, Inc.
9.125%, 1/15/06 90 92
RSL Communications, Ltd.
9.125%, 3/1/08 300 303
SB Treasury Co. LLC
9.40%, 12/29/49 100 103
SD Warren Co. 'B'
12.00%, 12/15/04 215 240
Sinclair Broadcast Group
9.00%, 7/15/07 475 495
Smithfield Foods, Inc.
7.625%, 2/15/08 65 65
Snyder Oil Corp.
8.75%, 6/15/07 175 180
Southland Corp.
5.00%, 12/15/03 665 582
Station Casinos Inc.
9.75%, 4/15/07 270 306
TCI Satellite Entertainment
0.00%, 2/15/07 245 176
Teleport Communications
(a) 0.00%, 7/1/07 275 237
Tenet Healthcare Corp.
8.625%, 1/15/07 U.S.$ 405 U.S.$ 422
Vencor Inc.
8.625%, 7/15/07 200 225
WAM!NET, Inc.
0.00%, 3/1/05 200 121
Western Financial Bank
8.875%, 8/1/07 450 434
-------------
14,007
-------------
COLLATERALIZED MORTGAGE OBLIGATION (0.5%)
Long Beach Auto 1997-1, 'B'
14.22%, 10/26/03 291 291
-------------
15,735
-------------
- ------------------------------------------------------------------------------
VENEZUELA (5.2%)
BONDS (5.2%)
Republic of Venezuela Debt
Conversion Bond
9.25%, 9/15/27 1,033 941
Republic of Venezuela Debt
Conversion Bond 'DL'
6.813%, 12/18/07 1,667 1,518
Republic of Venezuela
Global Bond
9.25%, 9/15/27 700 638
-------------
3,097
-------------
- ------------------------------------------------------------------------------
TOTAL DEBT INSTRUMENTS
(Cost U.S. $57,311) 58,575
-------------
- ------------------------------------------------------------------------------
STRUCTURED INVESTMENTS (4.1%)
- ------------------------------------------------------------------------------
BRAZIL (4.1%)
Salomon Brothers Federative
Republic of Brazil Credit
Linked Enhanced Note
9.00%, 1/15/99
(Cost U.S. $2,500) 2,500 2,435
-------------
- ------------------------------------------------------------------------------
NO. OF
WARRANTS
- ------------------------------------------------------------------------------
WARRANTS (0.0%)
- ------------------------------------------------------------------------------
NIGERIA (0.0%)
Central Bank of Nigeria,
Expiring 11/15/20
(Cost U.S. $0) 250 -@
-------------
- ------------------------------------------------------------------------------
SHARES
- ------------------------------------------------------------------------------
PREFERRED STOCK (0.5%)
- ------------------------------------------------------------------------------
UNITED STATES (0.5%)
Time Warner, Inc. Series 'M' 10.25%
(Cost U.S.$311) 280 314
-------------
- ------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
FACE
AMOUNT VALUE
(000) (000)
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (4.2%)
- ------------------------------------------------------------------------------
PHILIPPINES (1.2%)
BONDS
ING Bank ,
Zero Coupon, 8/14/98 U.S.$ 700 U.S.$ 719
-------------
- ------------------------------------------------------------------------------
TURKEY (2.5%)
BILLS
Turkey Treasury Bill,
Zero Coupon, 8/19/98 TRL 263,900,000 799
Zero Coupon, 9/2/98 218,550,000 646
-------------
1,445
-------------
- ------------------------------------------------------------------------------
UNITED STATES (0.5%)
REPURCHASE AGREEMENT
Chase Securities, Inc., 5.60%,
dated 3/31/98, due
4/1/98, to be repurchased
at U.S.$306, collateralized
by U.S.$300, United States
Treasury Notes, 7.00%, due
4/15/99, valued at U.S.$314 U.S.$ 306 306
-------------
- ------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENTS
(Cost U.S.$2,501) 2,470
-------------
- ------------------------------------------------------------------------------
FOREIGN CURRENCY ON DEPOSIT WITH
CUSTODIAN (0.5%)
French Franc FRF 1,433 231
German Mark DEM 106 57
-------------
(Cost U.S. $291) 288
-------------
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS (108.0%)
(Cost U.S.$62,914) 64,082
-------------
- ------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES (-8.0%)
Other Assets U.S.$ 6,781
Liabilities (11,501) U.S.$ (4,720)
----------------- -------------
- ------------------------------------------------------------------------------
NET ASSETS (100%)
Applicable to 4,178,082 issued and
outstanding U.S.$0.01 par value
shares (100,000,000 shares
authorized) U.S.$ 59,362
-------------
- ------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE U.S.$ 14.21
-------------
- ------------------------------------------------------------------------------
</TABLE>
(a)- Step Bond-coupon rate increases in increments to maturity. Rate
disclosed is as of March 31, 1998. Maturity date disclosed is the
ultimate maturity.
@- Amount is less than U.S.$500.
PIK- Payment-in-Kind. Income may be paid in additional securities or cash at
the discretion of the issuer.
8
