N-CSR 1 formncsr022semi.htm SEMI-ANNUAL REPORT formncsr022semi
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549

FORM N-CSR 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT 
INVESTMENT COMPANIES 
Investment Company Act file number: 811-4764 

DREYFUS PREMIER MUNICIPAL BOND FUND 
(Exact name of Registrant as specified in charter) 

c/o The Dreyfus Corporation 
200 Park Avenue 
New York, New York 10166 
(Address of principal executive offices) (Zip code) 
 
Mark N. Jacobs, Esq. 
200 Park Avenue 
New York, New York 10166 
(Name and address of agent for service) 
 
Registrant's telephone number, including area code: (212) 922-6000 

Date of fiscal year end:    04/30 
Date of reporting period:    10/31/04 

        FORM N-CSR 
Item 1.    Reports to Stockholders.     

Dreyfus Premier 
Municipal Bond Fund 

SEMIANNUAL REPORT October 31, 2004

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents
 
    THE FUND 
2    Letter from the Chairman 
3    Discussion of Fund Performance 
6    Understanding Your Fund’s Expenses 
6    Comparing Your Fund’s Expenses 
With Those of Other Funds
7    Statement of Investments 
19    Statement of Assets and Liabilities 
20    Statement of Operations 
21    Statement of Changes in Net Assets 
23    Financial Highlights 
27    Notes to Financial Statements 
FOR MORE INFORMATION
    Back Cover 

Dreyfus Premier 
Municipal Bond Fund 

The    Fund 

LETTER FROM THE CHAIRMAN

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus Premier Municipal Bond Fund, covering the six-month period from May 1, 2004, through October 31, 2004. Inside, you’ll find valuable information about how the fund was managed during the reporting period, including a discussion with the fund’s portfolio managers, James Welch and W. Michael Petty.

The Federal Reserve Board has raised short-term interest rates three times since the beginning of the summer, higher commodity prices suggest that inflationary pressures may be rising over the near term and lower federal tax rates have made tax-advantaged investments somewhat less beneficial for many investors. Nonetheless, the municipal bond market is on its way to posting another successful year. In our view, investor demand for municipal bonds has remained strong due to concerns that record energy prices and persistent geopolitical tensions may be eroding the rate of U.S. economic growth.

In uncertain markets such as these, the tax-exempt investments that are right for you depend on your current needs, future goals, tolerance for risk and the composition of your current portfolio. As always, your financial advisor may be in the best position to recommend the specific market sectors that will satisfy most effectively your tax-exempt income and capital preservation needs.

Thank you for your continued confidence and support.

2

DISCUSSION OF FUND PERFORMANCE

James Welch and W. Michael Petty, Portfolio Managers

How did Dreyfus Premier Municipal Bond Fund perform relative to its benchmark?

For the six-month period ended October 31, 2004, the fund achieved total returns of 5.00% for Class A shares, 4.73% for Class B shares and 4.61% for Class C shares.1 The Lehman Brothers Municipal Bond Index, the fund’s benchmark, achieved a total return of 4.79% for the same period.2 In addition, the fund is reported in the Lipper General Municipal Debt Funds category. Over the reporting period, the average total return for all funds reported in the category was 4.25% .3

On October 13, 2004, Dreyfus Premier Municipal Bond Fund began to offer Class Z shares generally only to shareholders who received Class Z shares in exchange for shares of General Municipal Bond Fund, Inc. — which transferred all of its assets into the fund at the close of business on October 13, 2004. Since its inception through October 31,2004, the fund achieved a total return of 0.60% for Class Z shares.4 On October 14, 2004, W. Michael Petty and James Welch became co-portfolio managers of the fund.

Despite heightened market volatility and higher short-term interest rates, longer-term municipal bonds generally gained value over the reporting period in a market environment characterized by sluggish economic growth and low inflation.The fund’s returns were roughly in line with its benchmark and higher than the Lipper category average, primarily because of the fund’s relatively long average duration — a measure of sensitivity to changing interest rates — which enabled it to participate more fully in market rallies.

What is the fund’s investment approach?

The fund seeks to maximize current income exempt from federal income tax to the extent consistent with the preservation of capital.To pursue its goal, the fund normally invests substantially all of its assets in municipal bonds that provide income exempt from federal income tax. The fund invests at least 70% of its assets in investment-grade municipal

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

bonds or the unrated equivalent as determined by Dreyfus.The fund may invest up to 30% of its assets in municipal bonds rated below investment grade or the unrated equivalent as determined by Dreyfus. Under normal market conditions, the dollar-weighted average maturity of the fund’s portfolio is expected to exceed 10 years.

We may buy and sell bonds based on credit quality, market outlook and yield potential. In selecting municipal bonds for investment, the portfolio manager may assess the current interest-rate environment and a municipal bond’s potential volatility in different rate environ-ments.We focus on bonds with the potential to offer attractive current income, typically looking for bonds that can provide consistently attractive current yields or that are trading at competitive market prices. A portion of the fund’s assets may be allocated to “discount” bonds, which are bonds that sell at a price below their face value, or to “premium” bonds, which are bonds that sell at a price above their face value. The fund’s allocation either to discount bonds or to premium bonds will change along with our changing views of the current interest-rate and market environments. We may also look to select bonds that are most likely to obtain attractive prices when sold.

What other factors influenced the fund’s performance?

In the weeks just before the beginning of the reporting period, stronger-than-expected labor statistics and surging oil and gas prices had rekindled investors’ inflation concerns, and municipal bond prices had declined sharply. As inflationary pressures mounted, investors began to revise forward their expectations of the timing of eventual interest-rate hikes from the Federal Reserve Board (the “Fed”). Indeed, between late June and September, the Fed implemented three separate increases of short-term interest rates, driving the overnight federal funds from 1% to 1.75% .

During the summer of 2004, the U.S. economy hit a “soft patch,” and investors’ inflation concerns began to wane. Monthly job statistics failed to match their springtime gains, and higher energy prices threatened to erode the rate of economic growth. As a result, longer-term municipal bonds rallied, erasing their previous losses.At the same time, yields of shorter-term securities rose to reflect higher interest rates,

4

causing yield differences between shorter-term and longer-term bonds to narrow significantly.

In this environment, the fund benefited from its modest emphasis on bonds in the 20-year range and its lighter-than-average exposure to short-term securities. Because of this “yield curve” positioning, the fund was able to participate more fully in the market’s summertime rally.

When making new purchases, we generally focused on investment-grade, premium-priced bonds with strong liquidity characteristics. Because yield differences between higher-quality (such as AA-rated) and lower-quality (such as BBB-rated) bonds also were relatively narrow during the reporting period, it made little sense to us to assume the risks of lower-rated securities.

What is the fund’s current strategy?

We have continued to maintain the fund’s relatively conservative investment posture.Although we expect the Fed to continue to raise short-term interest rates, several factors currently appear to be constraining the rate of U.S. economic growth, and inflation appears to be under control. At the same time, however, we have attempted to manage risks by maintaining our focus on high-quality, premium-priced bonds, which historically have held more of their value during market declines.

November 15, 2004
1    Total return includes reinvestment of dividends and any capital gains paid, and does not take into 
    consideration the maximum initial sales charge in the case of Class A shares or the applicable 
    contingent deferred sales charges imposed on redemptions in the case of Class B and Class C 
    shares. Had these charges been reflected, returns would have been lower. Past performance is no 
    guarantee of future results. Share price, yield and investment return fluctuate such that upon 
    redemption, fund shares may be worth more or less than their original cost. Income may be subject 
    to state and local taxes, and some income may be subject to the federal alternative minimum tax 
    (AMT) for certain investors. Capital gains, if any, are fully taxable. 
2    SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital 
    gain distributions.The Lehman Brothers Municipal Bond Index is a widely accepted, unmanaged 
    total return performance benchmark for the long-term, investment-grade, tax-exempt bond market. 
    Index returns do not reflect fees and expenses associated with operating a mutual fund. 
3    Source: Lipper Inc. 
4    Class Z is not subject to any initial or deferred sales charge. Return figure provided reflects the 
    absorption of fund expenses by The Dreyfus Corporation pursuant to an agreement in effect 
    through April 30, 2006, at which time it may be extended, modified or terminated. Had these 
    expenses not been absorbed, the fund’s return would have been lower. 
 
    The Fund 5 

U N D E R S TA N D I N G YO U R F U N D ’ S E X P E N S E S ( U n a u d i t e d )

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Premier Municipal Bond Fund from May 1, 2004 to October 31, 2004. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment                 
assuming actual returns for the six months ended October 31, 2004†         
    Class A    Class B    Class C        Class Z 
Expenses paid per $1,000 ††    $ 4.81    $ 7.53    $ 8.61    $    .43 
Ending value (after expenses)    $1,050.00    $1,047.30    $1,046.10    $1,006.00 
 
COMPARING YOUR FUND’S EXPENSES             
WITH THOSE OF OTHER FUNDS (Unaudited)             

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment assuming a hypothetical 5% annualized return for the six months ended October 31, 2004†

    Class A    Class B    Class C    Class Z 
Expenses paid per $1,000 ††    $ 4.74    $ 7.43    $ 8.49    $ .42 
Ending value (after expenses)    $1,020.52    $1017.85    $1,016.79    $1,002.04 

†    For Class A, Class B and Class C shares and from October 14, 2004 (commencement of initial offering) to 
    October 31, 2004 for Class Z shares. 
††    Expenses are equal to the fund’s annualized expense ratio of .93% for Class A, 1.46% for Class B, 1.67% for 
    Class C and .86% for Class Z; multiplied by the average account value over the period, multiplied by 18/365 for 
    Class Z and 184/365 for Class A, Class B and Class C (to reflect actual days since inception for Class Z shares 
    and one-half year period for Class A, Class B and Class C shares). 

6
STATEMENT OF INVESTMENTS
October 31, 2004 (Unaudited)
    Principal     
Long-Term Municipal Investments—95.9%    Amount ($)    Value ($) 
Alabama—2.0%         
Jefferson County, Sewer Revenue         
(Capital Improvement Warrants):         
5.25%, 2/1/2023 (Insured; FGIC)         
(Prerefunded 8/1/2012)    2,055,000 a    2,344,940 
5.125%, 2/1/2039 (Insured; FGIC)         
(Prerefunded 2/1/2009)    4,000,000 a    4,434,080 
5%, 2/1/2042 (Insured; FGIC)         
(Prerefunded 8/1/2012)    3,030,000 a    3,405,811 
University of Alabama, HR         
5.75%, 9/1/2020 (Insured; MBIA)    3,000,000    3,384,810 
Arizona—.4%         
Arizona School Facilities Board, Revenue         
(State School Improvement) 5.25%, 7/1/2020    2,500,000    2,766,150 
Arkansas—.7%         
Lake Hamilton, School District Number 005         
(Capital Improvement) 5.50%, 4/1/2029         
(Insured; AMBAC)    4,600,000    4,917,906 
California—9.9%         
California:         
5.625%, 5/1/2018    5,550,000    6,247,080 
5.625%, 5/1/2020    5,715,000    6,426,346 
California Department of Water Resources,         
Power Supply Revenue:         
6%, 5/1/2015    6,000,000    7,024,080 
5.375%, 5/1/2018 (Insured; AMBAC)    5,280,000    5,856,576 
California Economic Recovery 5%, 7/1/2017    5,000,000    5,364,150 
California Pollution Control Financing Authority, PCR         
9.783%, 6/1/2014    6,355,000 b,c    8,742,510 
California Public Works Board, LR         
(Dept. of Corrections—Corcoran II)         
5.50%, 1/1/2017 (Insured; AMBAC)    5,000,000    5,298,400 
Foothill/Eastern Transportation Corridor Agency,         
Toll Road Revenue         
6%, 1/1/2034 (Prerefunded 1/1/2007)    5,000,000 a    5,429,050 
Golden State Tobacco Securitization Corp.,         
Tobacco Settlement Revenue (Asset Backed)         
7.90%, 6/1/2042    1,500,000    1,621,575 
Lincoln, Special Tax         
(Community Facilities District Number 2003-1)         
6%, 9/1/2034    3,500,000    3,590,825 
 
 
 
    The Fund    7 

S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

    Principal         
Long-Term Municipal Investments (continued)    Amount ($)    Value ($) 
California (continued)             
Los Angeles Unified School District             
5.25%, 7/1/2020 (Insured; FSA)    4,000,000        4,389,240 
Port Oakland, Revenue             
5.50%, 11/1/2020 (Insured; FGIC)    4,085,000        4,490,926 
San Diego Unified School District, Election of 1998             
5.50%, 7/1/2023 (Insured; MBIA)    3,205,000        3,756,292 
Colorado—8.2%             
Arapahoe County Capital Improvement Trust Fund,             
Highway Revenue (E-470 Project):             
Zero Coupon, 8/31/2005    2,530,000        2,492,657 
Zero Coupon, 8/31/2007 (Prerefunded 8/31/2005)    4,000,000    a    3,516,880 
7%, 8/31/2026 (Prerefunded 8/31/2005)    11,000,000    a    11,800,030 
Broomfield City and County, COP             
(Open Space Park and Recreation Facilities)             
5.50%, 12/1/2020 (Insured; AMBAC)    1,000,000        1,119,840 
Colorado Educational and Cultural Facilities Authority,             
LR (Community Colleges of Colorado)             
5.50%, 12/1/2021 (Insured; AMBAC)    1,100,000        1,238,644 
Colorado Housing Finance Authority,             
7.15%, 10/1/2030 (Insured; FHA)    130,000        132,411 
Denver City and County, Airport Revenue:             
6%, 11/15/2017 (Insured; AMBAC)    5,000,000        5,586,400 
7.50%, 11/15/2023 (Insured; MBIA)    9,715,000        9,941,262 
E-470 Public Highway Authority, Revenue             
5.75%, 9/1/2035 (Insured; MBIA)    5,500,000        6,179,140 
Lakewood, MFHR (Insured Mortgage Loan)             
6.70%, 10/1/2036 (Insured; FHA)    5,000,000        5,159,450 
Northwest Parkway Public Highway Authority, Revenue:             
Zero Coupon, 6/15/2027 (Insured; AMBAC)    6,125,000        1,738,336 
7.125%, 6/15/2041    6,750,000        7,198,808 
Connecticut—4.0%             
Connecticut:             
9.542%, 6/15/2011    4,000,000    b,c    5,162,360 
9.042%, 12/15/2015    3,700,000    b,c    5,027,893 
Connecticut Health and Educational Facilities Authority,             
Revenue:             
(Saint Francis Hospital & Medical Center)             
5.50%, 7/1/2017             
(Insured; Radianassurance)    4,040,000        4,460,928 
(University of Hartford) 5.625%, 7/1/2026             
(Insured; Radianassurance)    4,345,000        4,686,821 
 
 
8             

    Principal     
Long-Term Municipal Investments (continued)    Amount ($)    Value ($) 
Connecticut (continued)         
Mashantucket Western Pequot Tribe,         
Special Revenue         
5.75%, 9/1/2027    8,000,000 c    8,249,280 
District of Columbia—1.0%         
Washington Convention Center Authority,         
Dedicated Tax Revenue (Senior Lien)         
5%, 10/1/2021 (Insured; AMBAC)    6,500,000    6,910,735 
Florida—.9%         
Highlands County Health Facilities Authority, Revenue         
(Adventist/Sunbelt) 6%, 11/15/2031    2,500,000    2,688,375 
Jacksonville Electric Authority, Revenue         
5.50%, 10/1/2030    3,385,000    3,474,669 
Georgia—2.5%         
Atlanta and Fulton County Recreation Authority,         
Revenue (Downtown Arena Public Improvement)         
5.375%, 12/1/2026 (Insured; MBIA)    2,180,000    2,338,071 
College Park Business and Industrial Development         
Authority, Revenue (Civic Center)         
5.75%, 9/1/2026 (Insured; AMBAC)    4,250,000    4,784,607 
Georgia 5.25%, 7/1/2017    5,000,000    5,559,150 
Milledgeville-Baldwin County Development Authority,         
Revenue (Georgia College and         
State University Foundation)         
5.50%, 9/1/2024    4,490,000    4,711,537 
Illinois—2.7%         
Carol Stream, First Mortgage Revenue         
(Windsor Park Manor) 6.50%, 12/1/2007    1,445,000    1,538,115 
Illinois Development Finance Authority, Revenue         
(Community Rehabilitation Providers Facility):         
8.75%, 3/1/2010    107,000    107,775 
8.25%, 8/1/2012    1,365,000    1,275,333 
Illinois Educational Facilities Authority, Revenues         
(University of Chicago)         
5.125%, 7/1/2038 (Insured; MBIA)    5,000,000    5,107,650 
Illinois Health Facilities Authority, Revenue         
(Residential Centers Inc.) 8.50%, 8/15/2016    4,660,000    4,665,452 
Metropolitan Pier and Exposition Authority,         
Dedicated State Tax Revenue         
(McCormick Place Expansion)         
5.50%, 6/15/2023 (Insured; MBIA)    5,000,000    5,493,050 
 
 
    The Fund    9 

S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

    Principal     
Long-Term Municipal Investments (continued)    Amount ($)    Value ($) 
Kansas—2.4%         
Kansas Department of Transportation,         
Highway Revenue         
5%, 3/1/2022    5,000,000    5,332,000 
Wichita, HR (Via Christi Health System, Inc.):         
6.25%, 11/15/2019    2,000,000    2,248,980 
6.25%, 11/15/2020    3,000,000    3,363,780 
Wyandotte County Kansas City         
Unified Government, Utility Systems Revenue         
5.65%, 9/1/2022 (Insured; AMBAC)    5,000,000    5,837,800 
Kentucky—2.1%         
Mount Sterling, LR         
(Kentucky League of Cities Funding)         
6.10%, 3/1/2018    5,500,000    6,628,160 
Pendleton County, Multi-County LR         
(Kentucky Association of Counties         
Leasing Trust Program)         
6.40%, 3/1/2019    6,000,000    7,409,940 
Louisiana—.2%         
Saint James Parish, SWDR         
(Freeport-McMoran Partnership)         
7.70%, 10/1/2022    1,000,000    1,001,650 
Maryland—.3%         
Maryland Energy Financing Administration, SWDR         
(Wheelabrator Water) 6.45%, 12/1/2016    2,100,000    2,213,106 
Massachusetts—3.4%         
Massachusetts Health and Educational         
Facilities Authority, Revenue:         
(Harvard Pilgrim Health)         
5%, 7/1/2014 (Insured; FSA)    4,500,000    4,732,695 
(Harvard University) 5.75%, 1/15/2012    4,075,000    4,762,086 
Massachusetts Industrial Finance Agency, Revenue:         
Health Care Facility         
(Metro Health Foundation, Inc.)         
6.75%, 12/1/2027    8,000,000    7,762,160 
Water Treatment (American Hingham)         
6.95%, 12/1/2035    2,640,000    2,817,487 
Route 3 North Transportation         
Improvement Association, LR         
5.75%, 6/15/2017 (Insured; MBIA)    3,000,000    3,398,430 

10
    Principal         
Long-Term Municipal Investments (continued)    Amount ($)    Value ($) 
Michigan—7.1%             
Dearborn Economic Development Corp., HR             
(Oakwood Obligation Group)             
5.875%, 11/15/2025 (Insured; FGIC)    4,950,000        5,209,331 
Dickinson County Healthcare Systems, HR             
5.80%, 11/1/2024 (Insured; ACA)    1,930,000        2,034,857 
Michigan Building Authority, Revenue             
(Residual Certificates) 8.98%, 10/15/2017    5,000,000    b,c    6,245,700 
Michigan Hospital Finance Authority:             
HR (Genesys Health Systems):             
8.10%, 10/1/2013 (Prerefunded 10/1/2005)    2,000,000    a    2,152,920 
8.125%, 10/1/2021 (Prerefunded 10/1/2005)    4,910,000    a    5,286,499 
7.50%, 10/1/2027 (Prerefunded 10/1/2005)    8,000,000    a    8,413,920 
Revenue 8.772%, 11/15/2007    3,225,000    b,c    3,765,059 
Michigan Strategic Fund, SWDR             
(Genesee Power Station)             
7.50%, 1/1/2021    6,900,000        6,085,248 
Pontiac Tax Increment Finance Authority,             
Tax Increment Revenue             
(Development Area Number 3)             
6.25%, 6/1/2022    3,250,000        3,270,150 
Romulus Economic Development Corp., EDR             
(HIR Limited Partnership)             
7%, 11/1/2015             
(Insured; ITT Lyndon Property Co. Inc.)    5,000,000        6,368,500 
Minnesota—.6%             
Chaska, Electric Revenue 6%, 10/1/2025    2,000,000        2,159,220 
Minnesota Housing Finance Agency,             
Single Family Mortgage             
5.95%, 1/1/2017    935,000        983,218 
Northfield, HR 6%, 11/1/2026    1,000,000        1,054,680 
Missouri—1.4%             
Missouri Development Finance Board,             
Infrastructure Facilities Revenue (Branson)             
5.375%, 12/1/2027    2,470,000        2,548,299 
Missouri Health and Educational Facilities Authority,             
Health Facilities Revenue             
(Saint Anthony’s Medical Center)             
6.125%, 12/1/2019    4,000,000        4,343,120 

The Fund 11

S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

    Principal         
Long-Term Municipal Investments (continued)    Amount ($)    Value ($) 
Missouri (continued)             
Missouri Housing Development Commission, SFMR             
(Homeown Loan) 6.30%, 9/1/2025             
(Collateralized; FNMA & GNMA)    255,000        269,306 
Saint Louis Industrial Development Authority, Revenue             
(Saint Louis Convention) 7.20%, 12/15/2028    2,885,000        2,326,176 
New Jersey—4.2%             
Hudson County, COP (Correctional Facility)             
5%, 12/1/2021 (Insured; MBIA)    6,000,000        6,478,440 
New Jersey Economic Development Authority, Revenue:             
8.532%, 6/1/2015    2,495,000    b,c    3,026,011 
8.532%, 6/15/2016    2,495,000    b,c    3,026,011 
(School Facilities—Construction 2001):             
5.25%, 6/15/2015 (Insured; AMBAC)    10,000        11,064 
5.25%, 6/15/2016 (Insured; AMBAC)    10,000        11,064 
Special Facility (Continental Airlines Inc.)             
7%, 11/15/2030    2,000,000        1,583,800 
New Jersey Turnpike Authority, Turnpike Revenue:             
10.013%, 1/1/2011 (Insured; MBIA)    6,350,000    b,c    8,431,086 
5.50%, 1/1/2030 (Insured; MBIA)    6,000,000        6,512,640 
New Mexico—1.6%             
Farmington, PCR             
(Public Service Co.—San Juan) 6.375%, 4/1/2022    1,430,000        1,528,098 
Jicarilla Apache Nation, Revenue 5.50%, 9/1/2023    5,000,000        5,342,350 
New Mexico Finance Authority,             
State Transportation Revenue             
5.25%, 6/15/2020 (Insured; MBIA)    4,000,000        4,411,240 
New York—7.2%             
New York City 5.50%, 3/15/2015    3,500,000        3,868,865 
New York City Municipal Water Finance Authority,             
Water & Sewer Systems Revenue             
6%, 6/15/2033 (Prerefunded 6/15/2010)    3,085,000    a    3,625,492 
New York State Dormitory Authority, Revenues:             
(City University Systems) 5.50%, 7/1/2018    5,175,000        5,652,239 
(New York University) 6%, 7/1/2017 (Insured; MBIA)    3,500,000        4,298,280 
(Rochester Institute of Technology)             
5.25%, 7/1/2024 (Insured; AMBAC)    3,345,000        3,578,782 
(State University Educational Facilities)             
7.50%, 5/15/2013    2,500,000        3,221,200 
Sales Tax Asset Receivable Corp.:             
5.25%, 10/15/2019 (Insured; MBIA)    5,000,000    d    5,594,300 
5%, 10/15/2032 (Insured; AMBAC)    4,875,000    d    5,047,088 
 
 
12             

    Principal         
Long-Term Municipal Investments (continued)    Amount ($)    Value ($) 
New York (continued)             
Tobacco Settlement Financing Corp.,             
Revenue (Asset Backed)             
5.25%, 6/1/2021 (Insured; AMBAC)    3,000,000        3,239,640 
Triborough Bridge and Tunnel Authority,             
General Purpose Revenues             
5.50%, 1/1/2017 (Insured; MBIA)    10,000,000        11,589,800 
North Carolina—2.0%             
North Carolina Eastern Municipal Power Agency,             
Power Systems Revenue:             
7%, 1/1/2013    3,500,000        4,161,325 
6.75%, 1/1/2026 (Insured; ACA)    5,000,000        5,574,100 
North Carolina Medical Care Commission, Revenue             
(Housing Foundation Inc.):             
6.45%, 8/15/2020 (Insured; ACA)    1,000,000        1,112,780 
6.625%, 8/15/2030 (Insured; ACA)    2,565,000        2,806,649 
Ohio—5.3%             
Cincinnati, Water Systems Revenue:             
5%, 12/1/2020    2,420,000        2,594,772 
5%, 12/1/2021    3,825,000        4,032,047 
Cleveland-Cuyahoga County Port Authority, Revenue             
(Special Assessment/Tax Increment)             
7.35%, 12/1/2031    3,000,000        3,182,190 
Cuyahoga County:             
Hospital Facilities Revenue             
(UHHS/CSAHS Cuyahoga Inc. &             
CSAHS/UHHS Canton Inc.)             
7.50%, 1/1/2030    7,000,000        7,759,220 
HR (Metrohealth Systems) 6.15%, 2/15/2029    3,115,000        3,250,689 
Hamilton County, Sales Tax             
Zero Coupon, 12/1/2025 (Insured; AMBAC)    14,865,000        5,289,710 
Mahoning County, Hospital Facilities Revenue             
(Forum Health Obligation Group) 6%, 11/15/2032    2,500,000        2,647,575 
Ohio Water Development Authority,             
Pollution Control Facilities Revenue             
(Cleveland Electric)             
6.10%, 8/1/2020 (Insured; ACA)    7,300,000        7,714,421 
Oklahoma—2.1%             
Holdenville Industrial Authority,             
Correctional Facility Revenue:             
6.60%, 7/1/2010 (Prerefunded 7/1/2006)    2,045,000    a    2,242,199 
6.70%, 7/1/2015 (Prerefunded 7/1/2006)    4,625,000    a    5,078,574 

The Fund 13

S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

    Principal     
Long-Term Municipal Investments (continued)    Amount ($)    Value ($) 
Oklahoma (continued)         
McGee Creek Authority, Water Revenue         
6%, 1/1/2013 (Insured; MBIA)    6,025,000    7,122,394 
Oregon—.6%         
Portland, Sewer Systems Revenue         
5.75%, 8/1/2019 (Insured; FGIC)    3,500,000    3,978,380 
Pennsylvania—3.3%         
Allegheny County Sanitation Authority,         
Sewer Revenue 5.375%, 12/1/2024 (Insured; MBIA)    13,700,000    14,939,302 
Butler County Industrial Development Authority,         
Health Care Facilities Revenue         
(Saint John Care Center)         
5.85%, 4/20/2036 (Collateralized; GNMA)    4,210,000    4,478,598 
Montgomery County Higher Education and         
Health Authority, Revenue         
(First Mortgage—AHF/Montgomery, Inc.)         
10.50%, 9/1/2020    3,145,000    3,168,304 
Rhode Island—.7%         
Providence, Special Tax Increment Obligation         
6.65%, 6/1/2016    4,500,000    4,553,145 
Rhode Island Housing and Mortgage Finance Corp.         
(Homeownership Opportunity)         
7.55%, 10/1/2022    355,000    355,419 
South Carolina—3.7%         
Greenville County School District,         
Installment Purchase Revenue         
(Building Equity Sooner Tomorrow):         
5.875%, 12/1/2016    6,000,000    6,818,700 
5.50%, 12/1/2028    12,900,000    13,635,687 
Greenville Hospital System,         
Hospital Facilities Revenue         
5.50%, 5/1/2026 (Insured; AMBAC)    4,385,000    4,780,527 
Tennessee—1.5%         
Memphis Center Revenue Finance Corp.,         
Sports Facility Revenue (Memphis Redbirds)         
6.50%, 9/1/2028    8,000,000    8,064,880 
Shelby County Health Educational and Housing         
Facilities Board, MFHR (Cameron)         
7.25%, 7/1/2023    2,755,000    2,374,287 

14
    Principal     
Long-Term Municipal Investments (continued)    Amount ($)    Value ($) 
Texas—4.0%         
Alliance Airport Authority,         
Special Facilities Revenue         
(Federal Express Corp.) 6.375%, 4/1/2021    5,040,000    5,291,849 
Austin Convention Enterprises Inc.,         
Hotel Revenue (Convention Center):         
6.70%, 1/1/2028    5,000,000    5,323,400 
5.75%, 1/1/2032    3,105,000    3,153,965 
Dallas-Fort Worth International Airport,         
Joint Revenue 5.50%, 11/1/2021         
(Insured; FSA)    3,000,000    3,255,960 
Sabine River Authority, PCR         
(TXU Energy Company LLC)         
6.15%, 8/1/2022    2,995,000    3,251,522 
Texas Turnpike Authority,         
Central Texas Turnpike System Revenue         
5.75%, 8/15/2038 (Insured; AMBAC)    3,500,000    3,920,875 
Wichita Falls, Water and Sewer Revenue         
5.375%, 8/1/2024 (Insured; AMBAC)    3,000,000    3,262,230 
Utah—1.2%         
Carbon County, SWDR         
(Sunnyside Cogeneration-A)         
7.10%, 8/15/2023    8,649,000    8,478,355 
Virginia—.3%         
West Point Industrial Development Authority,         
SWDR (Chesapeake Corp.)         
6.375%, 3/1/2019    2,000,000    2,000,460 
Washington—2.3%         
Tobacco Settlement Authority,         
Tobacco Settlement Revenue (Asset Backed)         
6.625%, 6/1/2032    2,000,000    1,926,440 
Washington Public Power Supply System, Revenue         
(Nuclear Project Number 3)         
7.125%, 7/1/2016 (Insured; MBIA)    10,425,000    13,644,552 
West Virginia—1.4%         
Upshur County, SWDR (TJ International)         
7%, 7/15/2025    3,500,000    3,661,875 
West Virginia, State Road         
5.75%, 6/1/2025 (Insured; MBIA)    2,500,000    2,807,875 

The Fund 15

S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

    Principal         
Long-Term Municipal Investments (continued)    Amount ($)    Value ($) 
West Virginia (continued)             
West Virginia Hospital Finance Authority, HR             
(Charleston Area Medical Center)             
6%, 9/1/2012 (Prerefunded 9/1/2010)    2,440,000    a    2,832,425 
Wisconsin—2.5%             
Badger Tobacco Asset Securitization Corp.,             
Tobacco Settlement Revenue             
7%, 6/1/2028    13,000,000        13,063,310 
Wisconsin Health and Educational Facilities Authority,             
Revenue (Aurora Health Care)             
6.40%, 4/15/2033    4,000,000        4,262,280 
Wyoming—.4%             
Wyoming Student Loan Corp., Student Loan Revenue             
6.25%, 6/1/2029    2,500,000        2,676,050 
U.S. Related—1.8%             
Commonwealth of Puerto Rico:             
5.65%, 7/1/2015 (Insured; MBIA)    4,000,000        4,739,800 
Public Improvement 5.25%, 7/1/2013             
(Insured; MBIA)    6,000,000        6,883,140 
Puerto Rico Public Finance Corp.             
6%, 8/1/2026 (Insured; AGC)    580,000        703,053 
Total Long-Term Municipal Investments             
(cost $613,763,416)            658,793,663 
 
Short-Term Municipal Investments—3.7%             
California—.7%             
California Pollution Control Financing Authority,             
PCR, VRDN (Pacific Gas & Electric)             
1.72% (LOC; Bank One)    5,000,000    e    5,000,000 
Connecticut—.1%             
Connecticut Health and Educational Facilities Authority,             
Revenue, VRDN (Quinnipac University) 1.73%             
(Insured; Radianassurance)    500,000    e    500,000 
Florida—.7%             
Broward County Health Facilities Authority,             
Revenue, VRDN (John Knox Village)             
1.83% (Insured; Radianassurance)    2,500,000    e    2,500,000 

16
    Principal         
Short-Term Municipal Investments (continued)    Amount ($)    Value ($) 
Florida (continued)             
Collier County Health Facilities Authority,             
Revenue, VRDN (Cleveland Clinic Health)             
1.74% (LOC; JP Morgan Chase Bank)    2,000,000    e    2,000,000 
Dade County Industrial Development Authority,             
PCR, VRDN (Florida Power and Light Co.) 1.79%    400,000    e    400,000 
Pennsylvania—.3%             
Philadelphia Hospitals and Higher Education             
Facilities Authority, Revenue, VRDN             
(Children’s Hospital) 1.74%    1,300,000    e    1,300,000 
Schuylkill County Industrial Development Authority,             
RRR, VRDN (Northeastern Power Co.)             
1.75% (LOC; Dexia Credit Locale de France)    1,000,000    e    1,000,000 
Tennessee—1.9%             
Metropolitan Government Nashville and             
Davidson County, Health and Education             
Facilities Board, Revenue, VRDN             
(Vanderbilt University) 1.72%    12,900,000    e    12,900,000 
Total Short-Term Municipal Investments             
(cost $25,600,000)            25,600,000 
 
Total Investments (cost $639,363,416)    99.6%        684,393,663 
Cash and Receivables (Net)    .4%        2,507,679 
Net Assets    100.0%        686,901,342 

The Fund 17

S T A T E M E N T O F I N V E S T M E N T S ( U n a u d i t e d ) (continued)

Summary of Abbreviations         
 
ACA    American Capital Access    HR    Hospital Revenue 
AGC    ACE Guaranty Corporation    LOC    Letter of Credit 
AMBAC    American Municipal Bond    LR    Lease Revenue 
        Assurance Corporation    MBIA    Municipal Bond Investors 
COP    Certificate of Participation        Assurance Insurance 
EDR    Economic Development Revenue    Corporation 
FGIC    Financial Guaranty Insurance    MFHR    Multi-Family Housing Revenue 
        Company    PCR    Pollution Control Revenue 
FHA    Federal Housing Administration    RRR    Resources Recovery Revenue 
FNMA    Federal National Mortgage    SFMR    Single Family Mortgage Revenue 
        Association    SWDR    Solid Waste Disposal Revenue 
FSA    Financial Security Assurance    VRDN    Variable Rate Demand Notes 
GNMA    Government National Mortgage         
        Association         
 
 
 
Summary of Combined Ratings (Unaudited)     
 
Fitch    or Moody’s or    Standard & Poor’s    Value (%)† 
AAA    AAA    AAA    49.1 
AA    Aa    AA    14.8 
A        A    A    11.3 
BBB    Baa    BBB    10.9 
BB    Ba    BB    1.3 
B        B    B    .6 
F-1    MIG1/ P1    SP1/A1    3.6 
Not Rated f    Not Rated f    Not Rated f    8.4 
                100.0 
 
†    Based on total 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 rate is subject to change periodically.     
c    Securities 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.These securities have been 
    determined to be liquid by the Board of Trustees. At October 31, 2004, these securities amounted to $51,675,909 
    or 7.5% of net assets.         
d    Purchased on a delayed delivery basis.         
e    Securities payable on demand.Variable interest rate—subject to periodic change. 
f    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 notes to financial statements.         
 
18             

STATEMENT OF ASSETS AND LIABILITIES

October 31, 2004 (Unaudited)

            Cost    Value 
Assets ($):                 
Investments in securities—See Statement of Investments    639,363,416    684,393,663 
Cash                350,765 
Interest receivable                11,667,890 
Receivable for investment securities purchased            3,530,886 
Receivable for shares of Beneficial Interest subscribed        149,626 
Prepaid expenses                33,173 
                700,126,003 
Liabilities ($):                 
Due to The Dreyfus Corporation and affiliates—Note 3(c)        468,004 
Payable for investment securities purchased            12,183,539 
Payable for shares of Beneficial Interest redeemed            400,426 
Accrued expenses                172,692 
                13,224,661 
Net Assets ($)                686,901,342 
Composition of Net Assets ($):                 
Paid-in capital                681,492,008 
Accumulated undistributed investment income-net            9,496 
Accumulated net realized gain (loss) on investments        (39,630,409) 
Accumulated net unrealized appreciation             
(depreciation) on investments                45,030,247 
Net Assets ($)                686,901,342 
 
 
Net Asset Value Per Share                 
    Class A    Class B    Class C    Class Z 
Net Assets ($)    289,939,182    24,792,880    10,433,310    361,735,970 
Shares outstanding    22,067,458    1,886,238    792,886    27,530,028 
Net Asset Value Per Share ($)    13.14    13.14    13.16    13.14 

See notes to financial statements.

The Fund 19

STATEMENT OF OPERATIONS
Six Months Ended October 31, 2004 (Unaudited)
Investment Income ($):     
Interest Income    10,110,586 
Expenses:     
Management fee—Note 3(a)    1,005,011 
Shareholder servicing costs—Note 3(c)    587,621 
Distribution fees—Note 3(b)    106,369 
Registration fees    40,775 
Custodian fees    24,104 
Professional fees    11,661 
Prospectus and shareholders’ reports    8,941 
Trustees’ fees and expenses—Note 3(d)    6,631 
Loan commitment fees—Note 2    1,042 
Miscellaneous    10,158 
Total Expenses    1,802,313 
Less—reduction in custody fees due to     
earnings credits—Note 1(b)    (2,801) 
Net Expenses    1,799,512 
Investment Income—Net    8,311,074 
Realized and Unrealized Gain (Loss) on Investments-Note 4 ($): 
Net realized gain (loss) on investments and option transactions    1,126,285 
Net unrealized appreciation (depreciation) on investments    8,471,985 
Net Realized and Unrealized Gain (Loss) on Investments    9,598,270 
Net Increase in Net Assets Resulting from Operations    17,909,344 

See notes to financial statements.
20

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    October 31, 2004    Year Ended 
    (Unaudited) a    April 30, 2004 
Operations ($):         
Investment income-net    8,311,074    16,261,005 
Net realized gain (loss) on investments    1,126,285    (4,489,664) 
Net unrealized appreciation         
(depreciation) on investments    8,471,985    (1,575,929) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    17,909,344    10,195,412 
Dividends to Shareholders from ($):         
Investment income-net:         
Class A shares    (6,809,612)    (14,256,130) 
Class B shares    (555,207)    (1,447,639) 
Class C shares    (205,839)    (460,325) 
Class Z shares    (802,154)     
Total Dividends    (8,372,812)    (16,164,094) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Class A shares    10,080,047    35,607,537 
Class B shares    419,922    3,753,629 
Class C shares    673,013    2,247,684 
Class Z shares    2,456,185    — 
Net assets received in connection         
with reorganization—Note 1:    360,805,920    — 
Dividends reinvested:         
Class A shares    4,182,148    8,431,974 
Class B shares    310,681    778,442 
Class C shares    123,725    269,128 
Class Z shares    532,827    — 
Cost of shares redeemed:         
Class A shares    (24,677,180)    (67,691,212) 
Class B shares    (6,049,889)    (17,546,005) 
Class C shares    (1,873,749)    (4,354,852) 
Class Z shares    (3,433,975)    — 
Increase (Decrease) in Net Assets         
from Beneficial Interest Transactions    343,549,675    (38,503,675) 
Total Increase (Decrease) in Net Assets    353,086,207    (44,472,357) 
Net Assets ($):         
Beginning of Period    333,815,135    378,287,492 
End of Period    686,901,342    333,815,135 
Undistributed investment income—net    9,496    66,772 
 
        The Fund 21 

STATEMENT OF CHANGES IN NET ASSETS (continued)
    Six Months Ended     
    October 31, 2004    Year Ended 
    (Unaudited) a    April 30, 2004 
Capital Share Transactions:         
Class A b         
Shares sold    785,903    15,370,781 
Shares issued for dividends reinvested    323,608    703,863 
Shares redeemed    (1,918,101)    (19,248,196) 
Net Increase (Decrease) in Shares Outstanding    (808,590)    (3,173,552) 
Class B b         
Shares sold    32,454    937,925 
Shares issued for dividends reinvested    24,054    76,169 
Shares redeemed    (469,892)    (1,034,265) 
Net Increase (Decrease) in Shares Outstanding    (413,384)    (20,171) 
Class C         
Shares sold    52,445    587,173 
Shares issued for dividends reinvested    9,559    24,498 
Shares redeemed    (146,748)    (325,120) 
Net Increase (Decrease) in Shares Outstanding    (84,744)    286,551 
Class Z         
Shares sold    186,923    — 
Shares issued in connection         
with reorganization—Note 1    27,563,477    — 
Shares issued for dividends reinvested    40,550    — 
Shares redeemed    (260,922)    — 
Net Increase (Decrease) in Shares Outstanding    27,530,028    — 

a    Effective October 14, 2004 (commencement of initial offering) to October 31, 2004, for Class Z shares. 
b    During the period ended October 31, 2004, 206,173 Class B shares representing $2,660,757 were automatically 
    converted to 206,242 Class A shares and during the period ended April 30, 2004, 413,589 Class B shares 
    representing $5,398,765 were automatically converted to 413,719 Class A shares. 
See notes to financial statements. 

22
FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated.All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

a As required, effective May 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide 
for Investment Companies and began accreting discount or amortizing premium on a scientific basis for debt securities 
on a daily basis.The effect of this change for the period ended April 30, 2002 was to increase net investment income 
per share and decrease net realized and unrealized gain (loss) on investments per share by less than $.01 and increase 
the ratio of net investment income to average net assets from 5.19% to 5.20%. Per share data and ratios/supplemental 
data for periods prior to May 1, 2001 have not been restated to reflect this change in presentation. 
b Based on average shares outstanding at each month end. 
c Exclusive of sales charge. 
d Not annualized. 
e Annualized. 

See notes to financial statements.

The Fund 23

FINANCIAL HIGHLIGHTS (continued)
a    As required, effective May 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide 
    for Investment Companies and began accreting discount or amortizing premium on a scientific basis for debt securities 
    on a daily basis.The effect of this change for the period ended April 30, 2002 was to increase net investment income 
    per share and decrease net realized and unrealized gain (loss) on investments per share by less than $.01 and increase 
    the ratio of net investment income to average net assets from 4.68% to 4.69%. Per share data and ratios/supplemental 
    data for periods prior to May 1, 2001 have not been restated to reflect this change in presentation. 
b    Based on average shares outstanding at each month end. 
c    Exclusive of sales charge. 
d    Not annualized. 
e    Annualized. 
See notes to financial statements. 
24     

a As required, effective May 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide 
for Investment Companies and began accreting discount or amortizing premium on a scientific basis for debt securities 
on a daily basis.The effect of this change for the period ended April 30, 2002 was to increase net investment income 
per share and decrease net realized and unrealized gain (loss) on investments per share by less than $.01 and increase 
the ratio of net investment income to average net assets from 4.42% to 4.45%. Per share data and ratios/supplemental 
data for periods prior to May 1, 2001 have not been restated to reflect this change in presentation. 
b Based on average shares outstanding at each month end. 
c Exclusive of sales charge. 
d Not annualized. 
e Annualized. 

See notes to financial statements.

The Fund 25

FINANCIAL HIGHLIGHTS (continued)
        Six Months Ended 
        October 31, 2004 
Class Z Shares    (Unaudited) a 
Per Share Data ($):     
Net asset value, beginning of period    13.09 
Investment Operations:     
Investment income—net    .03b 
Net realized and unrealized gain     
(loss) on investments    .05 
Total from Investment Operations    .08 
Distributions:     
Dividends from investment income—net    (.03) 
Dividends from net realized gain on investments    — 
Total Distributions    (.03) 
Net asset value, end of period    13.14 
Total Return (%) c    .60d 
Ratios/Supplemental Data (%):     
Ratio of total expenses to average net assets    .86e 
Ratio of net expenses to average net assets    .86e 
Ratio of net investment income to average net assets    4.50e 
Portfolio Turnover Rate    33.91d 
Net Assets, end of period ($ x 1,000)    361,736 
 
a    From October 14, 2004 (commencement of initial offering) to October 31, 2004. 
b    Based on average shares outstanding at month end.     
c    Exclusive of sales charge.     
d    Not annualized.     
e    Annualized.     
See notes to financial statements.     

26

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus Premier Municipal Bond Fund (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a diversified open-end management investment company. The fund’s investment objective is to maximize current income exempt from federal income tax to the extent consistent with the preservation of capi-tal.The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser.The Manager is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).

On April 6, 2004, the fund’s Board of Trustees approved the addition of Class Z shares, which became effective on October 13, 2004.

As of the close of business on October 13, 2004, pursuant to an Agreement and Plan of Reorganization previously approved by the fund’s Board of Trustees, all of the assets, subject to the liabilities, of General Municipal Bond Fund, Inc. were transferred to the fund. Shareholders of General Municipal Bond Fund, Inc. received Class Z shares of the fund, in an amount equal to the aggregate net asset value of their investment in General Municipal Bond Fund, Inc. at the time of the exchange.The net asset value of the fund’s Class Z shares at the close of business on October 13, 2004, after the reorganization, was $13.09 per share, and a total of 27,563,477 Class Z shares representing net assets of $360,805,920 (including $24,179,912 net unrealized appreciation on investments) were issued to General Municipal Bond Fund, Inc. shareholders in the exchange.The exchange was a tax-free event to shareholders.

Dreyfus Service Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares.The fund is authorized to issue an unlimited number of $.001 par value shares of Beneficial Interest in each of the following classes of shares: Class A, Class B, Class C and Class Z. Class A shares are subject to a sales charge imposed at the time of purchase. Class B shares are subject to a contingent deferred sales charge (“CDSC”) imposed on Class B share redemptions made within six years of purchase and automatically con-

The Fund 27

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

vert to Class A shares after six years. Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Class Z shares are sold at net asset value per share generally only to shareholders who received Class Z shares in exchange for their shares of General Municipal Bond Fund, Inc. as a result of the reorganization of such fund. Class Z shares generally are not available for new accounts. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the Board of Trustees. 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. Options and financial futures on municipal and U.S.Treasury securities are valued at the last

28

sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day.

(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 accretion of discount and amortization of premium, 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 has an arrangement with the custodian bank whereby the fund receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

(c) Dividends to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gain, if any, 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 of 1986, as amended (the “Code”).To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gain. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(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 Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

The Fund 29

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The fund has an unused capital loss carryover of $39,071,105 available for federal income taxes to be applied against future net securities profits, if any, realized subsequent to April 30, 2004. If not applied, $11,182,708 of the carryover expires in fiscal 2008, $9,553,959 expires in fiscal 2009, $4,754,947 expires in fiscal 2010, $5,790,239 expires in fiscal 2011 and $7,789,252 expires in fiscal 2012.

The tax character of distributions paid to shareholders during the fiscal year ended April 30, 2004 was as follows: tax exempt income $16,164,094. The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Line of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings. During the period ended October 31, 2004, the fund did not borrow under the Facility.

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement with the Manager, the management fee is computed at the annual rate of .55 of 1% of the value of the fund’s average daily net assets and is payable monthly.The Manager has contractually agreed to waive receipt of its fees and/or assume the fund’s expenses, until at least April 30, 2006, so that, the total annual operating expenses of the fund’s Class Z shares (exclusive of taxes, brokerage commissions, interest, commitment fees on borrowings and extraordinary expenses) do not exceed .87 of 1%.

During the period ended October 31, 2004, the Distributor retained $11,236 from commissions earned on sales of the fund’s Class A shares, and $43,104 and $410 from contingent deferred sales charges on redemptions of the fund’s Class B and Class C shares, respectively.

30

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Class B and Class C shares pay the Distributor for distributing their shares at an annual rate of .50 of 1% of the value of the average daily net assets of Class B shares and .75 of 1% of the value of the average daily net assets of Class C shares. During the period ended October 31, 2004, Class B and Class C shares were charged $67,044 and $39,325, respectively, pursuant to the Plan.

(c) Under the Shareholder Services Plan, Class A, Class B, Class C and Class Z shares pay the Distributor at an annual rate of .25 of 1% of the value of the average daily net assets of Class A, Class B and Class C shares and .20 of 1% of the value of the average daily net assets of Class Z shares, for the provision of certain services.The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts.The Distributor may make payments to Service Agents (a securities dealer, financial institution or other industry professional) in respect of these services. The Distributor determines the amounts to be paid to Service Agents. During the period ended October 31, 2004, Class A, Class B, Class C and Class Z shares were charged $365,509, $33,522, $13,108 and 35,747 respectively, pursuant to the Shareholder Services 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. During the period ended October 31, 2004, the fund was charged $84,424 pursuant to the transfer agency agreement.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: management fees $320,502, Rule 12b-1 distribution plan fees $17,163 and shareholder services plan fees $130,339.

(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

The Fund 31

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended October 31, 2004, amounted to $421,762,246 and $125,461,597, respectively.

At October 31, 2004, accumulated net unrealized appreciation on investments was $45,030,247, consisting of $47,770,222 gross unrealized appreciation and $2,739,975 gross unrealized depreciation.

At October 31, 2004, 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).

NOTE 5—Legal Matters:

Two class actions have been filed against Mellon Financial, Mellon Bank, N.A., Dreyfus, Founders Asset Management LLC and the directors of all or substantially all of the Dreyfus funds, on behalf of a purported class and derivatively on behalf of said funds, alleging violations of the Investment Company Act of 1940, the Investment Advisers Act of 1940, and the common law. The complaints alleged, among other things, (i) that 12b-1 fees and directed brokerage were improperly used to pay brokers to recommend Dreyfus funds over other funds, (ii) that such payments were not disclosed to investors, (iii) that economies of scale and soft-dollar benefits were not passed on to investors, and (iv) that 12b-1 fees charged to certain funds that were closed to new investors were also improper. The complaints sought compensatory and punitive damages, rescission of the advisory contracts and an accounting and restitution of any unlawful fees, as well as an award of attorneys fees and litigation expenses. On April 22, 2004, the actions were consolidated under the caption In re Dreyfus Mutual Funds Fee Litigation, and a consolidated amended complaint was filed on September 13, 2004.While adding new parties and claims under state

32

and federal law, the allegations in the consolidated amended complaint essentially track the allegations in the prior complaints pertaining to 12b-1 fees, directed brokerage, soft dollars and revenue sharing. Dreyfus and the funds believe the allegations to be totally without merit and intend to defend the action vigorously.

Additional lawsuits arising out of these circumstances and presenting similar allegations and requests for relief may be filed against the defendants in the future. Neither Dreyfus nor the Dreyfus funds believe that any of the pending actions will have a material adverse effect on the Dreyfus funds or Dreyfus’ ability to perform its contracts with the Dreyfus funds.

The Fund 33

Telephone Call your financial representative or 1-800-554-4611

Mail    The Dreyfus Premier Family of Funds 
    144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Information regarding how the fund voted proxies relating to portfolio securities for the 12-month period ended June 30, 2004, is available on the SEC’s website at http://www.sec.gov and without charge, upon request, by calling 1-800-645-6561.

© 2004 Dreyfus Service Corporation

Item 2.    Code of Ethics. 
    Not applicable. 
Item 3.    Audit Committee Financial Expert. 
    Not applicable. 
Item 4.    Principal Accountant Fees and Services. 
    Not Applicable. 
Item 5.    Audit Committee of Listed Registrants. 
    Not applicable. 
Item 6.    [Reserved] 
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable. 
Item 8.    Purchases of Equity Securities by Closed-End Management Investment Companies 
    and Affiliated Purchasers. 
    Not applicable. 
Item 9.    Submission of Matters to a Vote of Security Holders. 
    Not applicable. 
Item 10.    Controls and Procedures. 

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant's most recently ended fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

-2-

Item 11.    Exhibits. 

(a)(1)    not applicable 
(a)(2)    Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) 
under the Investment Company Act of 1940. 
(a)(3)    Not applicable. 
(b)    Certification of principal executive and principal financial officers as required by Rule 30a-2(b) 
under the Investment Company Act of 1940. 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

  Dreyfus Premier Municipal Bond Fund
By:    /s/ Stephen E. Canter 
    Stephen E. Canter 
    President 
 
Date:    December 28, 2004 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:    /s/ Stephen E. Canter 
    Stephen E. Canter 
    Chief Executive Officer 
 
Date:    December 28, 2004 
 
By:    /s/ James Windels 
James Windels
    Chief Financial Officer 
 
Date:    December 28, 2004 

EXHIBIT INDEX

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)