N-CSR/A 1 form.htm AMENDED SEMI-ANNUAL REPORT form
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
 
 
FORM N-CSR\A 
 
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:    4/30 
Date of reporting period:    10/31/06 

FORM N-CSR

Item 1. Reports to Stockholders.

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Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.

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

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    Contents 
 
    T H E F U N D 
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 
22    Statement of Assets and Liabilities 
23    Statement of Operations 
24    Statement of Changes in Net Assets 
26    Financial Highlights 
30    Notes to Financial Statements 
39    Information About the Review and Approval 
    of the Fund’s Management Agreement 

F O R M O R E    I N F O R M AT I O N 
Back Cover     

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The Fund

Dreyfus Premier 
Municipal Bond 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, 2006, through October 31, 2006.

Although reports of slower U.S. economic growth and declining housing prices recently have raised economic concerns, we believe that neither a domestic recession nor a major shortfall in global growth is likely.A stubbornly low unemployment rate suggests that labor market conditions remain strong, and stimulative monetary policies over the last several years have left a legacy of ample financial liquidity world-wide.These and other factors should continue to support further economic expansion, but at a slower rate than we saw earlier this year.

The U.S. bond market also appears to be expecting a slower economy, as evidenced by an “inverted yield curve” at the end of October, in which yields of two-year U.S.Treasury securities were lower than the overnight federal funds rate. This anomaly may indicate that short-term interest rates have peaked, and that investors expect the Federal Reserve Board’s next move to be toward lower short-term interest rates.As always, we encourage you to discuss the implications of these and other matters with your financial adviser.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s portfolio managers.

Thank you for your continued confidence and support.

2

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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, 2006, the fund achieved total returns of 4.42% for Class A shares, 4.15% for Class B shares, 4.03% for Class C shares and 4.45% for Class Z shares.1 The Lehman Brothers Municipal Bond Index (the “Index”), the fund’s benchmark, achieved a total return of 4.12% for the same period.2 In addition, the fund is reported in the Lipper General Municipal Debt Funds category, and the average total return for all funds reported in this category was 3.86% for the reporting period.3

Municipal bonds rallied over most of the reporting period as the rate of U.S. economic growth began to moderate and the Federal Reserve Board (the “Fed”) refrained from raising short-term interest rates.The fund produced higher returns than its benchmark and Lipper category average, primarily due to its emphasis on securities toward the longer end of the market’s maturity range.

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 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, we may assess the current interest-rate environment and a municipal

The Fund 3

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DISCUSSION OF FUND PERFORMANCE (continued)

bond’s potential volatility in different rate environments.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?

Although the reporting period began with a bout of heightened market volatility amid temporary inflation and interest-rate concerns, the municipal bond market generally rallied over the summer and early fall as energy prices declined and U.S. housing markets softened, indicating that the U.S. economic expansion had begun to slow. The Fed lent credence to a less robust economic outlook when, after more than two years of steady rate hikes, it held short-term interest rates unchanged at 5.25% at its meetings in August, September and October. As a result, longer-term municipal bond yields declined while short-term yields remained relatively steady, causing yield differences along the market’s maturity range to narrow.

Municipal bond prices also were supported by favorable supply-and-demand factors over the reporting period. Most states and municipalities have received more tax revenue than originally projected, achieving budget surpluses and reducing their need to borrow. Consequently, the supply of newly issued municipal bonds fell compared to the same period one year earlier.Yet, demand remained robust from both individual and institutional investors seeking competitive levels of tax-free income.

The fund benefited from these trends by emphasizing longer-term securities and maintaining an average duration that was modestly longer than industry averages. This positioning enabled the fund to

4

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participate more fully in strength at the longer end of the market’s maturity spectrum. In addition, the fund received strong contributions to performance from lower-rated corporate-backed municipal bonds, including those issued on behalf of airlines. A number of the fund’s holdings were pre-refunded by their issuers during the reporting period, which helped bolster their prices.

What is the fund’s current strategy?

Recent economic data suggest to us that the U.S. economy is slowing with little risk of recession. Consequently, the Fed appears unlikely to adjust short-term interest rates in either direction over the next several months. In addition, yield differences along the market’s maturity range have fallen toward historical lows in the wake of the market rally. Therefore, we recently reduced the fund’s average duration modestly to a position that is roughly in line with industry averages. When making new purchases, we have focused primarily on higher-quality, income-oriented bonds that tend to fare well in slower-growth economic environments.

  November 15, 2006
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. Each share class is subject 
    to a different sales charge and distribution expense structure and will achieve different returns. 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 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. 

The Fund 5

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UNDERSTANDING YOUR FUND’S EXPENSES(Unaudited)

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, 2006 to October 31, 2006. 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, 2006         
    Class A    Class B    Class C    Class Z 
Expenses paid per $1,000 †    $ 5.87    $ 8.49    $ 9.67    $ 5.57 
Ending value (after expenses)    $1,044.20    $1,041.50    $1,040.30    $1,044.50 

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, 2006 
    Class A    Class B    Class C    Class Z 
Expenses paid per $1,000 †    $ 5.80    $ 8.39    $ 9.55    $ 5.50 
Ending value (after expenses)    $1,019.46    $1,016.89    $1,015.73    $1,019.76 
 
† Expenses are equal to the fund’s annualized expense ratio of 1.14% for Class A, 1.65% for Class B, 1.88% 
Class C and 1.08% for Class Z Shares; multiplied by the average account value over the period, multiplied by 
184/365 (to reflect the one-half year period).             

6

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STATEMENT OF INVESTMENTS 
October 31, 2006 (Unaudited) 

Long-Term Municipal    Coupon    Maturity    Principal     
Investments—104.5%    Rate (%)    Date    Amount ($)    Value ($) 
Alabama—2.1%                 
Jefferson County,                 
Limited Obligation                 
School Warrants    5.25    1/1/20    5,000,000    5,381,000 
Jefferson County,                 
Sewer Revenue (Capital                 
Improvement Warrants)                 
(Insured; FGIC)    5.13    2/1/09    4,000,000 a    4,169,600 
University of Alabama,                 
HR (Insured; MBIA)    5.75    9/1/10    3,000,000 a    3,261,210 
Arkansas—.8%                 
Lake Hamilton School District                 
Number 005, GO Limited Tax                 
Capital Improvement                 
(Insured; AMBAC)    5.50    4/1/29    4,600,000    4,715,644 
California—11.8%                 
California,                 
GO    5.63    5/1/10    1,465,000 a    1,583,313 
California,                 
GO    5.63    5/1/10    2,530,000 a    2,729,971 
California,                 
GO (Various Purpose)    5.25    11/1/27    5,000,000    5,364,100 
California,                 
GO (Various Purpose)    5.00    2/1/33    5,000,000    5,233,150 
California Department of Water                 
Resources, Power Supply Revenue    6.00    5/1/12    6,000,000 a    6,798,960 
California Department of Water                 
Resources, Power Supply                 
Revenue (Insured; AMBAC)    5.38    5/1/12    5,280,000 a    5,821,992 
California Educational Facilities                 
Authority, Revenue (University                 
of Southern California)    5.00    10/1/33    5,000,000    5,238,550 
California Pollution Control                 
Financing Authority, PCR    7.36    6/1/14    12,710,000 b,c    14,559,178 
Foothill/Eastern Transportation                 
Corridor Agency, Toll                 
Road Revenue    6.00    1/1/07    5,000,000 a    5,021,100 
Golden State Tobacco                 
Securitization Corp., Tobacco                 
Settlement Asset-Backed Bonds    7.88    6/1/42    2,170,000    2,668,601 

T h e F u n d 7

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STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
California (continued)                 
Golden State Tobacco                 
Securitization Corp., Tobacco                 
Settlement Asset-Backed Bonds    7.90    6/1/42    1,920,000    2,363,923 
Lincoln, Community Facilities                 
District Number 2003-1, Special                 
Tax (Lincoln Crossing Project)    6.00    9/1/34    3,185,000    3,418,174 
Los Angeles Unified School                 
District (Insured; FSA)    5.25    7/1/13    4,000,000 a    4,411,560 
Port of Oakland,                 
Revenue (Insured; FGIC)    5.50    11/1/20    4,085,000    4,425,975 
Colorado—5.3%                 
Broomfield City and County,                 
COP (Open Space, Park and                 
Recreation Facilities Lease                 
Purchase Agreement)                 
(Insured; AMBAC)    5.50    12/1/20    1,000,000    1,068,190 
Colorado Educational and Cultural                 
Facilities Authority, LR                 
(Community Colleges of                 
Colorado System Headquarters                 
Project) (Insured; AMBAC)    5.50    12/1/21    1,100,000    1,192,279 
Colorado Housing Finance Authority                 
(Single Family Program)                 
(Collateralized; FHA)    7.15    10/1/30    70,000    71,149 
Colorado Housing Finance Authority                 
(Single Family Program)                 
(Collateralized; FHA)    6.60    8/1/32    3,290,000    3,446,703 
Denver City and County,                 
Airport Revenue (Insured; AMBAC)    6.00    11/15/17    5,000,000    5,395,550 
E-470 Public Highway Authority,                 
Revenue (Insured; MBIA)    5.75    9/1/10    5,500,000 a    6,026,955 
Northwest Parkway Public Highway                 
Authority, Revenue    7.13    6/15/41    8,250,000    8,672,235 
Northwest Parkway Public Highway                 
Authority, Revenue                 
(Insured; AMBAC)    0.00    6/15/27    6,125,000    1,919,330 
University of Colorado Hospital                 
Authority, Revenue    5.25    11/15/39    3,810,000    4,003,319 

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Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Connecticut—5.7%                 
Connecticut    7.12    6/15/11    8,000,000 b,c    8,580,840 
Connecticut    6.62    12/15/15    7,400,000 b,c    8,432,818 
Connecticut Health and Educational             
Facilities Authority, Revenue                 
(Saint Francis Hospital and                 
Medical Center Issue)                 
(Insured; Radian)    5.50    7/1/17    4,040,000    4,392,652 
Connecticut Health and Educational             
Facilities Authority, Revenue                 
(University of Hartford Issue)             
(Insured; Radian)    5.63    7/1/26    4,345,000    4,737,745 
Mashantucket Western Pequot Tribe,             
Special Revenue    5.75    9/1/27    8,000,000 c    8,210,240 
District of Columbia—1.1%                 
Washington Convention Center                 
Authority, Dedicated Tax                 
Revenue (Senior Lien)                 
(Insured; AMBAC)    5.00    10/1/21    6,500,000    6,713,525 
Florida—1.4%                 
Highlands County Health Facilities             
Authority, HR (Adventist                 
Health System/Sunbelt                 
Obligated Group)    6.00    11/15/11    2,500,000 a    2,790,800 
Highlands County Health Facilities             
Authority, HR (Adventist                 
Health System/Sunbelt                 
Obligated Group)    5.25    11/15/36    5,000,000    5,339,700 
Georgia—2.5%                 
Cobb County Development Authority,             
University Facilities Revenue                 
(Kennesaw State University                 
Foundations Project)                 
(Insured; MBIA)    5.00    7/15/33    5,000,000    5,252,300 
College Park Business and                 
Industrial Development                 
Authority, Revenue (Civic                 
Center Project)                 
(Insured; AMBAC)    5.75    9/1/10    4,250,000 a    4,668,455 

T h e F u n d 9

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STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Georgia (continued)                 
Georgia    5.25    7/1/10    5,000,000 a    5,306,350 
Illinois—5.2%                 
Carol Stream,                 
First Mortgage Revenue                 
(Windsor Park Manor Project)    6.50    12/1/07    770,000    781,227 
Chicago,                 
SFMR (Collateralized: FHLMC,                 
FNMA and GNMA)    6.45    9/1/29    2,195,000    2,242,697 
Chicago,                 
SFMR (Collateralized: FHLMC,                 
FNMA and GNMA)    5.50    12/1/42    5,000,000    5,542,500 
Chicago O’Hare International                 
Airport, Special Facilities                 
Revenue (American                 
Airlines Inc. Project)    8.20    12/1/24    4,000,000    4,124,800 
Illinois Development Finance                 
Authority, Revenue (Community                 
Rehabilitation Providers                 
Facilities Acquisition Program)    8.75    3/1/10    102,000    102,831 
Illinois Development Finance                 
Authority, Revenue (Community                 
Rehabilitation Providers                 
Facilities Acquisition Program)    8.25    8/1/12    216,484    184,202 
Illinois Educational Facilities                 
Authority, Revenue                 
(Northwestern University)    5.00    12/1/38    7,500,000    7,824,375 
Illinois Educational Facilities                 
Authority, Revenue (University                 
of Chicago) (Insured; MBIA)    5.13    7/1/38    5,000,000    5,147,800 
Metropolitan Pier and Exposition                 
Authority, Dedicated State Tax                 
Revenue (McCormick Place                 
Expansion Project) (Insured; MBIA)    5.50    6/15/23    5,000,000    5,437,750 
Indiana—.4%                 
East Chicago,                 
SWDR (USG Corporation Project)    6.38    8/1/29    2,485,000    2,630,074 
Kansas—1.5%                 
Sedgwick and Shawnee Counties,                 
SFMR (Mortgage-Backed                 
Securities Program)                 
(Collateralized: FNMA and GNMA)    5.55    6/1/38    3,000,000    3,260,520 

10

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Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Kansas (continued)                 
Wichita,                 
HR (Via Christi Health System, Inc.)    6.25    11/15/19    2,000,000    2,206,860 
Wichita,                 
HR (Via Christi Health System, Inc.)    6.25    11/15/20    3,000,000    3,310,290 
Kentucky—2.3%                 
Mount Sterling,                 
LR (Kentucky League of Cities                 
Funding Trust Program)    6.10    3/1/18    5,500,000    6,492,640 
Pendleton County,                 
Multi-County LR (Kentucky                 
Association of Counties                 
Leasing Trust Program)    6.40    3/1/19    6,000,000    7,063,980 
Louisiana—.5%                 
Louisiana Housing Finance Agency,                 
SFMR (Home Ownership Program)                 
(Collateralized: FNMA and GNMA)    6.40    12/1/30    1,835,000    1,878,673 
Saint James Parish,                 
SWDR (Freeport-McMoRan                 
Partnership Project)    7.70    10/1/22    1,000,000    1,001,820 
Maryland—.4%                 
Maryland Energy Financing                 
Administration, SWDR                 
(Wheelabrator Water Technologies                 
Baltimore LLC Projects)    6.45    12/1/16    2,100,000    2,145,549 
Massachusetts—.9%                 
Massachusetts Industrial Finance                 
Agency, Water                 
Treatment Revenue                 
(Massachusetts-American                 
Hingham Project)    6.95    12/1/35    2,450,000    2,462,152 
Route 3 North Transportation                 
Improvement Association, LR                 
(Insured; MBIA)    5.75    6/15/17    3,000,000    3,212,340 
Michigan—6.4%                 
Dearborn Economic Development                 
Corp., HR (Oakwood Obligation                 
Group) (Insured; FGIC)    5.88    11/15/25    4,950,000    5,008,162 
Detroit School District,                 
School Building and Site                 
Improvement (Insured; FGIC)    5.00    5/1/28    5,000,000    5,215,350 

The Fund11

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STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Michigan (continued)                 
Michigan Building Authority,                 
Revenue (Residual Certificates)    7.17    10/15/17    10,000,000 b,c    10,791,600 
Michigan Strategic Fund,                 
SWDR (Genesee Power                 
Station Project)    7.50    1/1/21    7,925,000    7,924,604 
Pontiac Tax Increment Finance                 
Authority, Tax Increment                 
Revenue (Development                 
Area Number 3)    6.25    6/1/22    3,250,000    3,515,623 
Romulus Economic Development                 
Corp., Limited Obligation EDR                 
(Romulus HIR Limited                 
Partnership Project) (Insured;                 
ITT Lyndon Property Insurance Co.)    7.00    11/1/15    5,000,000    6,088,450 
Minnesota—1.0%                 
Chaska,                 
Electric Revenue    6.00    10/1/10    2,000,000 a    2,177,260 
Minnesota Housing Finance Agency,                 
Single Family Mortgage    5.95    1/1/17    545,000    546,962 
Saint Paul Housing and                 
Redevelopment Authority,                 
Hospital Facility Revenue                 
(HealthEast Project)    6.00    11/15/35    3,000,000    3,335,100 
Mississippi—.4%                 
Mississippi Home Corp.,                 
SFMR (Collateralized; GNMA)    6.95    12/1/31    2,180,000    2,238,402 
Missouri—2.0%                 
Missouri Development Finance                 
Board, Infrastructure                 
Facilities Revenue (Branson                 
Landing Project)    5.38    12/1/27    2,470,000    2,577,791 
Missouri Development Finance                 
Board, Infrastructure                 
Facilities Revenue (Branson                 
Landing Project)    5.00    6/1/35    2,500,000    2,567,475 
Missouri Health and Educational                 
Facilities Authority, Health                 
Facilities Revenue (Saint                 
Anthony’s Medical Center)    6.13    12/1/10    4,000,000 a    4,409,200 

12

PMB.0022SA1006A 3/30/07 3:25 PM Page 13

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Missouri (continued)                 
Missouri Housing Development                 
Commission, SFMR                 
(Homeownership Loan Program)                 
(Collateralized: FHLMC, FNMA                 
and GNMA)    5.00    9/1/37    2,500,000    2,562,625 
Missouri Housing Development                 
Commission, SFMR                 
(Homeownership Loan Program)                 
(Collateralized: FNMA and GNMA)    6.30    9/1/25    120,000    121,301 
New Jersey—6.7%                 
New Jersey Economic Development                 
Authority, Revenue                 
(Insured; AMBAC)    6.10    6/15/15    4,990,000 b,c    5,351,775 
New Jersey Economic Development                 
Authority, Revenue                 
(Insured; AMBAC)    6.10    6/15/16    4,990,000 b,c    5,351,775 
New Jersey Economic Development                 
Authority, Revenue (School                 
Facilities-Construction 2001)                 
(Insured; AMBAC)    5.25    6/15/11    10,000 a    10,725 
New Jersey Economic Development                 
Authority, Revenue (School                 
Facilities-Construction 2001)                 
(Insured; AMBAC)    5.25    6/15/11    10,000 a    10,725 
New Jersey Turnpike Authority,                 
Turnpike Revenue                 
(Insured; AMBAC)    5.00    1/1/35    3,000,000    3,099,060 
New Jersey Turnpike Authority,                 
Turnpike Revenue (Insured; MBIA)    5.50    1/1/10    6,000,000 a    6,351,840 
New Jersey Turnpike Authority,                 
Turnpike Revenue                 
(Insured; MBIA)    7.60    1/1/11    12,700,000 b,c    13,876,591 
Tobacco Settlement Financing Corp.                 
of New Jersey, Tobacco                 
Settlement Asset-Backed Bonds    7.00    6/1/41    5,135,000    5,946,279 
New Mexico—1.2%                 
Farmington,                 
PCR (Public Service Co. of New                 
Mexico San Juan Project)    6.38    4/1/22    1,430,000    1,474,258 

The Fund13

PMB.0022SA1006A 3/30/07 3:25 PM Page 14

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New Mexico (continued)                 
Jicarilla Apache Nation,                 
Revenue    5.50    9/1/23    5,000,000    5,421,550 
New York—6.4%                 
New York City    5.50    3/15/15    3,500,000    3,780,700 
New York City    5.00    8/1/28    5,000,000    5,298,500 
New York City Industrial                 
Development Agency, Special                 
Facility Revenue (American                 
Airlines, Inc. John F. Kennedy                 
International Airport Project)    7.13    8/1/11    5,000,000    5,428,400 
New York City Industrial                 
Development Agency, Special                 
Facility Revenue (American                 
Airlines, Inc. John F. Kennedy                 
International Airport Project)    8.00    8/1/28    3,000,000    3,700,770 
New York City Municipal Water                 
Finance Authority, Water and                 
Sewer System Revenue    6.00    6/15/10    3,085,000 a    3,371,967 
New York Liberty Development                 
Corp., Revenue (Goldman Sachs             
Headquarters Issue)    5.25    10/1/35    5,000,000    5,822,950 
New York State Dormitory                 
Authority, Revenue (New York                 
University) (Insured; MBIA)    6.00    7/1/17    3,500,000    4,178,370 
New York State Dormitory                 
Authority, Revenue (Rochester                 
Institute of Technology)                 
(Insured; AMBAC)    5.25    7/1/24    3,345,000    3,605,910 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational                 
Facilities)    7.50    5/15/13    2,500,000    3,031,550 
North Carolina—2.2%                 
North Carolina Eastern Municipal                 
Power Agency, Power                 
System Revenue    7.00    1/1/13    3,500,000    3,928,120 
North Carolina Eastern Municipal                 
Power Agency, Power System                 
Revenue (Insured; ACA)    6.75    1/1/26    5,000,000    5,459,050 

14

PMB.0022SA1006A 3/30/07 3:25 PM Page 15

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
North Carolina (continued)                 
North Carolina Medical Care                 
Commission, Revenue (North                 
Carolina Housing Foundation,                 
Inc.) (Insured; ACA)    6.45    8/15/20    1,000,000    1,092,480 
North Carolina Medical Care                 
Commission, Revenue (North                 
Carolina Housing Foundation,                 
Inc.) (Insured; ACA)    6.63    8/15/30    2,565,000    2,796,517 
Ohio—8.3%                 
Cincinnati,                 
Water Systems Revenue    5.00    12/1/20    2,420,000    2,544,654 
Cincinnati,                 
Water Systems Revenue    5.00    12/1/21    3,825,000    4,004,813 
Cleveland-Cuyahoga County Port                 
Authority, Senior Special                 
Assessment/Tax Increment                 
Revenue (University Heights—                 
Public Parking Garage Project)    7.35    12/1/31    3,000,000    3,238,740 
Columbus City School District,                 
School Facilities Construction                 
and Improvement (Insured; FSA)    5.00    12/1/14    5,000,000 a    5,460,650 
Columbus City School District,                 
School Facilities Construction                 
and Improvement (Insured; FSA)    4.25    12/1/32    6,000,000    5,865,540 
Cuyahoga County,                 
Hospital Facilities Revenue                 
(UHHS/CSAHS-Cuyahoga, Inc. and                 
CSAHS/UHHS-Canton, Inc. Project)    7.50    1/1/30    7,000,000    7,782,740 
Cuyahoga County,                 
Hospital Improvement Revenue                 
(The Metrohealth Systems Project)    6.15    2/15/09    3,115,000 a    3,318,316 
Hamilton County,                 
Sales Tax (Insured; AMBAC)    0.00    12/1/25    14,865,000    6,538,965 
Ohio,                 
SWDR (USG Corp. Project)    5.60    8/1/32    3,527,000    3,657,534 
Ohio Water Development Authority,                 
Pollution Control Facilities Revenue             
(Cleveland Electric Illuminating                 
Co. Project) (Insured; ACA)    6.10    8/1/20    7,300,000    7,531,191 

The Fund15

PMB.0022SA1006A 3/30/07 3:25 PM Page 16

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Oklahoma—2.0%                 
McGee Creek Authority,                 
Water Revenue (Insured; MBIA)    6.00    1/1/13    8,025,000    8,657,450 
Oklahoma Development Finance                 
Authority, Student Housing                 
Revenue (Seminole State                 
College Project)    5.13    9/1/36    3,000,000    3,092,130 
Oregon—.6%                 
Portland,                 
Sewer Systems Revenue                 
(Insured; FGIC)    5.75    8/1/10    3,500,000 a    3,769,815 
Pennsylvania—2.2%                 
Butler County Industrial                 
Development Authority, Health                 
Care Facilities Revenue (Saint                 
John Lutheran Care Center                 
Project) (Collateralized; GNMA)    5.85    4/20/36    4,210,000    4,520,740 
Lehman Municipal Trust Receipts                 
(Pennsylvania Economic                 
Development Financing                 
Authority)    7.16    6/1/31    5,000,000 b,c    5,236,125 
Pennslyvania Turnpike Commission,             
Oil Franchise Tax Senior                 
Revenue (Insured; AMBAC)    5.00    12/1/23    3,500,000 d    3,783,430 
South Carolina—3.5%                 
Greenville County School District,                 
Installment Purchase Revenue                 
(Building Equity Sooner for                 
Tomorrow)    7.17    12/1/28    10,900,000 b,c    12,068,862 
Greenville Hospital System,                 
Hospital Facilities Revenue                 
(Insured; AMBAC)    5.50    5/1/26    4,385,000    4,725,802 
Securing Assets for Education,                 
Installment Purchase Revenue                 
(Berkeley County School                 
District Project)    5.13    12/1/30    4,000,000    4,249,040 
Tennessee—3.0%                 
Johnson City Health and                 
Educational Facilities Board,                 
Hospital First Mortgage                 
Revenue (Mountain States                 
Health Alliance)    5.50    7/1/31    8,355,000    8,989,980 

16

PMB.0022SA1006A 3/30/07 3:25 PM Page 17

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Tennessee (continued)                 
Memphis Center City Revenue                 
Finance Corp., Sports Facility                 
Revenue (Memphis Redbirds                 
Baseball Foundation Project)    6.50    9/1/28    8,000,000    7,992,560 
Shelby County Health, Educational                 
and Housing Facility Board,                 
MFHR (Cameron at Kirby Parkway                 
and Stonegate Apartments)    7.25    7/1/23    2,685,000 e    729,783 
Texas—5.8%                 
Alliance Airport Authority Inc.,                 
Special Facilities Revenue                 
(American Airlines, Inc. Project)    7.50    12/1/29    6,100,000    6,222,000 
Austin Convention Enterprises                 
Inc., Convention Center Hotel                 
First Tier Revenue    6.70    1/1/28    5,000,000    5,336,800 
Cities of Dallas and Fort Worth,                 
Dallas/Fort Worth                 
International Airport,                 
Facility Improvement Corp.                 
Revenue (American Airlines, Inc.)    7.25    11/1/30    4,505,000    4,572,575 
Cities of Dallas and Fort Worth,                 
Dallas/Fort Worth                 
International Airport,                 
Facility Improvement Corp.                 
Revenue (American Airlines, Inc.)    6.38    5/1/35    4,625,000    4,746,499 
Cities of Dallas and Fort Worth,                 
Dallas/Fort Worth                 
International Airport, Joint                 
Revenue (Insured; FSA)    5.50    11/1/21    3,000,000    3,275,250 
Sabine River Authority,                 
PCR (TXU Energy Co. LLC Project)    6.15    8/1/22    2,995,000    3,257,003 
Texas Turnpike Authority,                 
Central Texas Turnpike System                 
Revenue (Insured; AMBAC)    5.75    8/15/38    3,500,000    3,853,360 
Wichita Falls,                 
Water and Sewer Revenue                 
(Insured; AMBAC)    5.38    8/1/24    3,000,000    3,207,420 
Washington—2.2%                 
Washington Public Power Supply                 
System, Revenue (Nuclear                 
Project Number 3) (Insured; MBIA)    7.13    7/1/16    10,425,000    13,192,212 

T h e F u n d 17

PMB.0022SA1006A 3/30/07 3:25 PM Page 18

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
West Virginia—.9%                 
West Virginia,                 
GO State Road (Insured; MBIA)    5.75    6/1/10    2,500,000 a    2,706,200 
West Virginia Hospital Finance                 
Authority, HR (Charleston Area                 
Medical Center, Inc.)    6.00    9/1/10    2,440,000 a    2,657,624 
Wisconsin—3.5%                 
Badger Tobacco Asset                 
Securitization Corp., Tobacco                 
Settlement Asset-Backed Bonds    7.00    6/1/28    13,350,000    15,089,905 
Wisconsin Health and Educational                 
Facilities Authority, Revenue                 
(Aurora Health Care, Inc.)    6.40    4/15/33    5,500,000    6,164,345 
Wyoming—.4%                 
Wyoming Student Loan Corp.,                 
Student Loan Revenue    6.25    6/1/29    2,500,000    2,654,450 
U.S. Related—3.9%                 
Children’s Trust Fund of Puerto                 
Rico, Tobacco Settlement                 
Asset-Backed Bonds    0.00    5/15/50    10,400,000    713,128 
Children’s Trust Fund of Puerto                 
Rico, Tobacco Settlement                 
Asset-Backed Bonds    0.00    5/15/55    10,000,000    358,000 
Puerto Rico Commonwealth                 
(Insured; MBIA)    5.65    7/1/15    4,000,000    4,572,000 
Puerto Rico Commonwealth,                 
Public Improvement (Insured; MBIA)    5.25    7/1/13    6,000,000    6,598,620 
Puerto Rico Electric Power                 
Authority, Power Revenue                 
(Insured; MBIA)    5.00    7/1/32    5,500,000    5,803,930 
Puerto Rico Infrastructure                 
Financing Authority, Special                 
Tax Revenue    5.00    7/1/46    5,000,000    5,231,050 
Total Long-Term Municipal Investments             
(cost $589,255,089)                625,881,214 

Option—.0%    Contracts    Value ($) 
Put Option         
December 2006 10 Year Future         
November 2006 @106         
(cost $284,250)    1,000    15,625 

18

PMB.0022SA1006A 3/30/07 3:25 PM Page 19

Short-Term Municipal    Coupon    Maturity    Principal     
Investments—1.3%    Rate (%)    Date    Amount ($)    Value ($) 
Florida—.2%                 
Putnam County Development                 
Authority, PCR, Refunding                 
(Florida Power and Light                 
Company Project)    3.62    11/1/06    1,000,000 f    1,000,000 
Kentucky—.3%                 
Kentucky Public Energy Authority,             
Gas Supply Revenue (Liquidity             
Facility; Societe Generale)    3.65    11/1/06    2,000,000 f    2,000,000 
North Carolina—.8%                 
North Carolina Medical Care                 
Commission, Health Care                 
Facilities First Mortgage                 
Revenue (Carol Woods Project)             
(Insured; Radian and Liquidity             
Facility; Branch Banking and             
Trust Co.)    3.62    11/1/06    5,000,000 f    5,000,000 
Total Short-Term Municipal Investments             
(cost $8,000,000)                8,000,000 
 
Total Investments (cost $597,539,339)        105.8%    633,896,839 
 
Liabilities, Less Cash and Receivables        (5.8%)    (34,761,383) 
 
Net Assets            100.0%    599,135,456 
 
a These securities are prerefunded; the date shown represents the prerefunded date. 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 Collateral for floating rate borrowings.             
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. At October 31, 2006, these securities 
amounted to $92,459,804 or 15.4% of net assets.             
d Purchased on a delayed delivery basis.             
e Non-income producing security; interest payments in default.         
f Securities payable on demand.Variable interest rate—subject to periodic change.     

T h e F u n d 19

PMB.0022SA1006A 3/30/07 3:25 PM Page 20

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Summary of Abbreviations         
 
ACA    American Capital Access    AGC    ACE Guaranty Corporation 
AGIC    Asset Guaranty Insurance    AMBAC    American Municipal Bond 
    Company        Assurance Corporation 
ARRN    Adjustable Rate Receipt Notes    BAN    Bond Anticipation Notes 
BIGI    Bond Investors Guaranty Insurance    BPA    Bond Purchase Agreement 
CGIC    Capital Guaranty Insurance    CIC    Continental Insurance 
    Company        Company 
CIFG    CDC Ixis Financial Guaranty    CMAC    Capital Market Assurance 
            Corporation 
COP    Certificate of Participation    CP    Commercial Paper 
EDR    Economic Development Revenue    EIR    Environmental Improvement 
            Revenue 
FGIC    Financial Guaranty Insurance         
    Company    FHA    Federal Housing Administration 
FHLB    Federal Home Loan Bank    FHLMC    Federal Home Loan Mortgage 
            Corporation 
FNMA    Federal National         
    Mortgage Association    FSA    Financial Security Assurance 
GAN    Grant Anticipation Notes    GIC    Guaranteed Investment Contract 
GNMA    Government National         
    Mortgage Association    GO    General Obligation 
HR    Hospital Revenue    IDB    Industrial Development Board 
IDC    Industrial Development Corporation    IDR    Industrial Development Revenue 
LOC    Letter of Credit    LOR    Limited Obligation Revenue 
LR    Lease Revenue    MBIA    Municipal Bond Investors Assurance 
            Insurance Corporation 
MFHR    Multi-Family Housing Revenue    MFMR    Multi-Family Mortgage Revenue 
PCR    Pollution Control Revenue    PILOT    Payment in Lieu of Taxes 
RAC    Revenue Anticipation Certificates    RAN    Revenue Anticipation Notes 
RAW    Revenue Anticipation Warrants    RRR    Resources Recovery Revenue 
SAAN    State Aid Anticipation Notes    SBPA    Standby Bond Purchase Agreement 
SFHR    Single Family Housing Revenue    SFMR    Single Family Mortgage Revenue 
SONYMA    State of New York Mortgage Agency    SWDR    Solid Waste Disposal Revenue 
TAN    Tax Anticipation Notes    TAW    Tax Anticipation Warrants 
TRAN    Tax and Revenue Anticipation Notes    XLCA    XL Capital Assurance 

20

PMB.0022SA1006A 3/30/07 3:25 PM Page 21

Summary of Combined Ratings (Unaudited)     
 
Fitch    or Moody’s    or    Standard & Poor’s    Value (%) † 
AAA    Aaa        AAA    43.8 
AA    Aa        AA    13.4 
A        A        A    13.6 
BBB    Baa        BBB    16.2 
BB    Ba        BB    .1 
B        B        B    3.0 
CCC    Caa        CCC    3.3 
F1    MIG1/P1        SP1/A1    1.3 
Not Rated g    Not Rated g        Not Rated g    5.3 
                    100.0 
 
†    Based on total 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 notes to financial statements.             

T h e F u n d 21

PMB.0022SA1006A 3/30/07 3:25 PM Page 22

STATEMENT OF ASSETS    AND    LIABILITIES 
October 31, 2006 (Unaudited)         

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments    597,539,339    633,896,839 
Cash        2,127,243 
Interest receivable        10,606,547 
Receivable for investment securities sold        7,765,444 
Receivable for shares of Beneficial Interest subscribed        24,923 
Prepaid expenses        33,312 
        654,454,308 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(c)        447,872 
Payable for floating rate notes issued        38,345,000 
Payable for investment securities purchased        15,639,256 
Interest and related expenses        497,051 
Payable for shares of Beneficial Interest redeemed        349,705 
Accrued expenses        39,968 
        55,318,852 
Net Assets ($)        599,135,456 
Composition of Net Assets ($):         
Paid-in capital        628,018,053 
Accumulated undistributed investment income—net        15,360 
Accumulated net realized gain (loss) on investments        (65,255,457) 
Accumulated net unrealized appreciation         
(depreciation) on investments        36,357,500 
Net Assets ($)        599,135,456 

Net Asset Value Per Share                 
    Class A    Class B    Class C    Class Z 
Net Assets ($)    256,037,237    14,177,396    9,997,094    318,923,729 
Shares outstanding    19,415,620    1,074,596    756,949    24,183,106 
Net Asset Value Per Share ($)    13.19    13.19    13.21    13.19 

See notes to financial statements.

22

PMB.0022SA1006A 3/30/07 3:25 PM Page 23

S TAT E M E N T    O F O P E R AT I O N S 
S i x M o n t h s E n d e d    O c t o b e r 3 1 , 2 0 0 6 ( U n a u d i t e d ) 

Investment Income ($):     
Interest Income    16,604,031 
Expenses:     
Management fee—Note 3(a)    1,665,375 
Shareholder servicing costs—Note 3(c)    865,708 
Interest and related expenses    722,793 
Distribution fees—Note 3(b)    74,451 
Registration fees    32,954 
Custodian fees    29,872 
Professional fees    28,285 
Prospectus and shareholder’s reports    10,870 
Trustees’ fees and expenses—Note 3(d)    4,597 
Loan commitment fees—Note 2    1,649 
Miscellaneous    24,434 
Total Expenses    3,460,988 
Less—reduction in custody fees     
due to earnings credits—Note 1(b)    (24,234) 
Net Expenses    3,436,754 
Investment Income—Net    13,167,277 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and options transactions    3,894,949 
Net realized gain (loss) on financial futures    (20,913) 
Net Realized Gain (Loss)    3,874,036 
Net unrealized appreciation (depreciation) on investments    8,868,204 
Net Realized and Unrealized Gain (Loss) on Investments    12,742,240 
Net Increase in Net Assets Resulting from Operations    25,909,517 

See notes to financial statements.

The Fund23

PMB.0022SA1006A 3/30/07 3:25 PM Page 24

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    October 31, 2006    Year Ended 
    (Unaudited)    April 30, 2006 
Operations ($):         
Investment income—net    13,167,277    28,683,719 
Net realized gain (loss) on investments    3,874,036    2,666,391 
Net unrealized appreciation         
(depreciation) on investments    8,868,204    (12,743,303) 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    25,909,517    18,606,807 
Dividends to Shareholders from ($):         
Investment income—net:         
Class A shares    (5,609,142)    (12,089,440) 
Class B shares    (292,754)    (734,708) 
Class C shares    (173,869)    (353,775) 
Class Z shares    (7,076,152)    (15,473,039) 
Total Dividends    (13,151,917)    (28,650,962) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Class A shares    8,836,580    14,638,352 
Class B shares    629,444    1,822,106 
Class C shares    1,473,190    749,467 
Class Z shares    2,740,327    10,500,961 
Dividends reinvested:         
Class A shares    3,670,484    7,656,702 
Class B shares    180,379    412,672 
Class C shares    107,145    208,831 
Class Z shares    4,819,305    10,364,641 
Cost of shares redeemed:         
Class A shares    (20,423,783)    (39,175,744) 
Class B shares    (3,406,168)    (6,684,478) 
Class C shares    (915,382)    (846,094) 
Class Z shares    (19,957,705)    (41,143,018) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (22,246,184)    (41,495,602) 
Total Increase (Decrease) in Net Assets    (9,488,584)    (51,539,757) 
Net Assets ($):         
Beginning of Period    608,624,040    660,163,797 
End of Period    599,135,456    608,624,040 
Undistributed investment income—net    15,360    — 

24

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    Six Months Ended     
    October 31, 2006    Year Ended 
    (Unaudited)    April 30, 2006 
Capital Share Transactions:         
Class A a         
Shares sold    681,920    1,122,340 
Shares issued for dividends reinvested    281,967    586,081 
Shares redeemed    (1,574,338)    (2,996,844) 
Net Increase (Decrease) in Shares Outstanding    (610,451)    (1,288,423) 
Class B a         
Shares sold    48,399    139,569 
Shares issued for dividends reinvested    13,854    31,562 
Shares redeemed    (262,387)    (511,145) 
Net Increase (Decrease) in Shares Outstanding    (200,134)    (340,014) 
Class C         
Shares sold    113,551    57,163 
Shares issued for dividends reinvested    8,218    15,964 
Shares redeemed    (70,372)    (64,601) 
Net Increase (Decrease) in Shares Outstanding    51,397    8,526 
Class Z         
Shares sold    210,831    803,576 
Shares issued for dividends reinvested    370,405    793,459 
Shares redeemed    (1,538,231)    (3,150,800) 
Net Increase (Decrease) in Shares Outstanding    (956,995)    (1,553,765) 

a    During the period ended October 31, 2006, 94,032 Class B shares representing $1,221,450 were automatically 
    converted to 94,050 Class A shares and during the period ended April 30, 2006, 197,377 Class B shares 
    representing $2,582,554 were automatically converted to 197,435 Class A shares. 
See notes to financial statements. 

The Fund25

PMB.0022SA1006A 3/30/07 3:25 PM Page 26

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.

    Six Months Ended                     
    October 31, 2006        Year Ended April 30,     
Class A Shares    (Unaudited)    2006    2005    2004    2003    2002 
Per Share Data ($):                         
Net asset value,                         
beginning of period    12.91    13.12    12.81    13.04    12.99    13.14 
Investment Operations:                         
Investment income—net a    .28    .59    .59    .60    .65    .68 
Net realized and unrealized                         
gain (loss) on investments    .28    (.21)    .31    (.24)    .04    (.15) 
Total from Investment Operations    .56    .38    .90    .36    .69    .53 
Distributions:                         
Dividends from                         
investment income—net    (.28)    (.59)    (.59)    (.59)    (.64)    (.68) 
Net asset value, end of period    13.19    12.91    13.12    12.81    13.04    12.99 
Total Return (%) b    4.42c    2.93    7.18    2.80    5.45    4.13 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets d    1.15e    1.09    1.03    1.00    1.04    1.11 
Ratio of net expenses                         
to average net assets d    1.14e    1.09    1.02    1.00    1.04    1.11 
Ratio of net investment income                         
to average net assets    4.34e    4.51    4.54    4.57    4.95    5.20 
Portfolio Turnover Rate    36.80c    48.31    48.30    91.43    92.94    49.90 
Net Assets, end of period                         
($ x 1,000)    256,037    258,504    279,612    293,083    321,936    361,701 
 
a    Based on average shares outstanding at each month end.                 
b    Exclusive of sales charge.                         
c    Not Annualized.                         
d    Ratio of total expenses to average net assets and ratio of net expenses to average net assets for all periods have been 
    restated.This restatement has no impact on the fund’s previously reported net assets, net investment income, net asset 
    value or total return. See Note 5.                         
e    Annualized.                         
See notes to financial statements.                         

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    Six Months Ended                     
    October 31, 2006        Year Ended April 30,     
Class B Shares    (Unaudited)    2006    2005    2004    2003    2002 
Per Share Data ($):                         
Net asset value,                         
beginning of period    12.91    13.12    12.82    13.05    12.99    13.14 
Investment Operations:                         
Investment income—net a    .25    .52    .52    .53    .58    .61 
Net realized and unrealized                         
gain (loss) on investments    .28    (.21)    .31    (.23)    .06    (.15) 
Total from Investment Operations    .53    .31    .83    .30    .64    .46 
Distributions:                         
Dividends from                         
investment income—net    (.25)    (.52)    (.53)    (.53)    (.58)    (.61) 
Net asset value, end of period    13.19    12.91    13.12    12.82    13.05    12.99 
Total Return (%) b    4.15c    2.40    6.64    2.20    5.00    3.60 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets d    1.66e    1.61    1.54    1.51    1.54    1.62 
Ratio of net expenses                         
to average net assets d    1.65e    1.61    1.54    1.51    1.54    1.62 
Ratio of net investment income                         
to average net assets    3.84e    3.99    4.02    4.06    4.44    4.69 
Portfolio Turnover Rate    36.80c    48.31    48.30    91.43    92.94    49.90 
Net Assets, end of period                         
($ x 1,000)    14,177    16,462    21,192    29,471    43,022    43,092 
 
a    Based on average shares outstanding at each month end.                 
b    Exclusive of sales charge.                         
c    Not Annualized.                         
d    Ratio of total expenses to average net assets and ratio of net expenses to average net assets for all periods have been 
    restated.This restatement has no impact on the fund’s previously reported net assets, net investment income, net asset 
    value or total return. See Note 5.                         
e    Annualized.                         
See notes to financial statements.                         

T h e F u n d 27

PMB.0022SA1006A 3/30/07 3:25 PM Page 28

F I N A N C I A L H I G H L I G H T S (continued)

Six Months Ended                     
October 31, 2006        Year Ended April 30,     
Class C Shares    (Unaudited)    2006    2005    2004    2003    2002 
Per Share Data ($):                         
Net asset value,                         
beginning of period    12.93    13.14    12.83    13.06    13.01    13.16 
Investment Operations:                         
Investment income—net a    .24    .49    .49    .50    .55    .57 
Net realized and unrealized                         
gain (loss) on investments    .28    (.21)    .32    (.23)    .05    (.14) 
Total from Investment Operations    .52    .28    .81    .27    .60    .43 
Distributions:                         
Dividends from                         
investment income—net    (.24)    (.49)    (.50)    (.50)    (.55)    (.58) 
Net asset value, end of period    13.21    12.93    13.14    12.83    13.06    13.01 
Total Return (%) b    4.03c    2.18    6.40    2.06    4.67    3.35 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                         
to average net assets d    1.89e    1.82    1.76    1.73    1.77    1.85 
Ratio of net expenses                         
to average net assets d    1.88e    1.82    1.76    1.73    1.77    1.85 
Ratio of net investment income                         
to average net assets    3.60e    3.78    3.81    3.84    4.18    4.45 
Portfolio Turnover Rate    36.80c    48.31    48.30    91.43    92.94    49.90 
Net Assets, end of period                         
($ x 1,000)    9,997    9,121    9,158    11,261    13,330    9,544 

a    Based on average shares outstanding at each month end. 
b    Exclusive of sales charge. 
c    Not Annualized. 
d    Ratio of total expenses to average net assets and ratio of net expenses to average net assets for all periods have been 
    restated.This restatement has no impact on the fund’s previously reported net assets, net investment income, net asset 
    value or total return. See Note 5. 
e    Annualized. 
See notes to financial statements. 

28

PMB.0022SA1006A 3/30/07 3:25 PM Page

    Six Months Ended         
    October 31, 2006    Year Ended April 30, 
Class Z Shares    (Unaudited)    2006    2005 a 
Per Share Data ($):             
Net asset value, beginning of period    12.91    13.12    13.09 
Investment Operations:             
Investment income—net b    .29    .60    .32 
Net realized and unrealized             
gain (loss) on investments    .28    (.21)    .03 
Total from Investment Operations    .57    .39    .35 
Distributions:             
Dividends from investment income—net    (.29)    (.60)    (.32) 
Net asset value, end of period    13.19    12.91    13.12 
Total Return (%) c    4.45d    2.99    2.71d 
Ratios/Supplemental Data (%):             
Ratio of total expenses to average net assets e    1.09f    1.03    .98f 
Ratio of net expenses to average net assets e    1.08f    1.03    .96f 
Ratio of net investment income             
to average net assets    4.40f    4.57    4.49f 
Portfolio Turnover Rate    36.80d    48.31    48.30 
Net Assets, end of period ($ x 1,000)    318,924    324,537    350,202 

a    From October 14, 2004 (commencement of initial offering) to April 30, 2005. 
b    Based on aveerage shares outstanding at each month end. 
c    Exclusive of sales charge. 
d    Not Annualized. 
e    Ratio of total expenses to average net assets and ratio of net expenses to average net assets for all periods have been 
    restated.This restatement has no impact on the fund’s previously reported net assets, net investment income, net asset 
    value or total return. See Note 5. 
f    Annualized. 
See notes to financial statements. 

The Fund 29

PMB.0022SA1006A 3/30/07 3:25 PM Page 30

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 capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser. The Manager is a wholly-owned subsidiary of Mellon Bank, N.A, which is a wholly-owned subsidiary of Mellon Financial Corporation (“Mellon Financial”).

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 convert 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.

Effective June 1, 2006, the fund no longer offers Class B shares, except in connection with dividend reinvestment and permitted exchanges of Class B shares.

  30

PMB.0022SA1006A 3/30/07 3:25 PM Page 31

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 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.

On September 20, 2006, the FASB released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements.The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Management does not believe that the

The Fund 31

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

application of this standard will have a material impact on the financial statements of the fund.

(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 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 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.

On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain

32

PMB.0022SA1006A 3/30/07 3:25 PM Page 33

tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority.Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management does not believe that the application of this standard will have a material impact on the financial statement of the fund.

The fund has an unused capital loss carryover of $68,612,712 available for federal income taxes to be applied against future net securities profits, if any, realized subsequent to April 30, 2006.The amount of this loss which can be utilized in subsequent years is subject to an annual limitation due to the fund’s merger with General Municipal Bond Fund, Inc. If not applied, $6,548,088 of the carryover expires in fiscal 2007, $17,253,564 expires in fiscal 2008, $9,553,959 expires in fiscal 2009, $17,083,173 expires in fiscal 2010, $10,384,676 expires in fiscal 2011 and $7,789,252 expires in fiscal 2012.

The tax character of all distributions paid to shareholders during the fiscal year ended April 30, 2006 was as follows: tax exempt income $28,650,962. 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 borrowing. During the period ended October 31, 2006, the fund did not borrow under the Facility.

T h e F u n d 33

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

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 the value of the fund’s average daily net assets and is payable monthly.

During the period ended October 31, 2006, the Distributor retained $4,543 from commissions earned on sales of the fund’s Class A shares, and $14,136 and $160 from contingent deferred sales charges on redemptions of the fund’s Class B and Class C shares, respectively.

(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 the value of the average daily net assets of Class B shares and .75% of the value of the average daily net assets of Class C shares. During the period ended October 31, 2006, Class B and Class C shares were charged $38,215 and $36,236, 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 the value of the average daily net assets of Class A, Class B and Class C shares and .20% 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, 2006, Class A, Class B, Class C and Class Z shares were charged $323,341, $19,107, $12,079 and $321,969, 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 per-

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sonnel and facilities to perform transfer agency services for the fund. During the period ended October 31, 2006, the fund was charged $126,274 pursuant to the transfer agency agreement.

During the period ended October 31, 2006, the fund was charged $2,044 for services performed by the Chief Compliance Officer.

The components of Due to The Dreyfus Corporation and affiliates in the Statement of Assets and Liabilities consist of: management fees $278,873, Rule 12b-1 distribution plan fees $12,385, shareholder services plan fees $113,291, transfer agency per account fees $41,960 and chief compliance officer fees $1,363.

(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.

(e) A .10% redemption fee is charged and retained by the fund on certain Class Z shares redeemed within thirty days of their issuance.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, financial futures and options transactions, during the period ended October 31, 2006, amounted to $217,892,784 and $242,014,404, respectively.

The fund may invest in financial futures contracts in order to gain exposure to or protect against changes in the market.The fund is exposed to market risk as a result of changes in the value of the underlying financial instruments. Investments in financial futures require the fund to “mark to market” on a daily basis, which reflects the change in market value of the contracts at the close of each day’s trading.Accordingly, variation margin payments are received or made to reflect daily unrealized gains and losses. When the contracts are closed, the fund recognizes a realized gain or loss. These investments require initial margin deposits with a broker, which consist of cash or cash equivalents.The amount of these deposits is determined by the exchange or Board of Trade on which the contract is traded

T h e F u n d 35

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NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

and is subject to change. At October 31, 2006, there were no financial futures contracts outstanding.

At October 31, 2006, accumulated net unrealized appreciation on investments was $35,827,360, consisting of $38,219,470 gross unrealized appreciation and $2,392,110 gross unrealized depreciation.

At October 31, 2006, 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—Restatement:

Subsequent to the issuance of the October 31, 2006 financial statements, the fund determined that the transfers of certain tax-exempt municipal bond securities by the fund to special purpose bond trusts in connection with participation in inverse floater structures do not qualify for sale treatment under Statement of Financial Accounting Standard No. 140,Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities, and should have been accounted for as a secured borrowing.

The correction of the above item resulted in the restatement of the ratio of total and net expenses of the financial highlights table as shown below:

Six Months Ended                     
Ratio of October 31, 2006        Year Ended April 30,     
Total Expenses    (Unaudited)    2006    2005    2004    2003    2002 
Class A shares:                         
As previously reported    .90%    .91%    .93%    .93%    .94%    .92% 
As restated    1.15%    1.09%    1.03%    1.00%    1.04%    1.11% 
Class B shares:                         
As previously reported    1.42%    1.43%    1.44%    1.44%    1.44%    1.43% 
As restated    1.66%    1.61%    1.54%    1.51%    1.54%    1.62% 
Class C shares:                         
As previously reported    1.65%    1.64%    1.66%    1.66%    1.67%    1.66% 
As restated    1.89%    1.82%    1.76%    1.73%    1.77%    1.85% 
Class Z shares:                         
As previously reported    .85%    .85%    .88%             
As restated    1.09%    1.03%    .98%             

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Six Months Ended                     
Ratio of October 31, 2006        Year Ended April 30,     
Net Expenses    (Unaudited)    2006    2005    2004    2003    2002 
Class A shares:                         
As previously reported    .91%    .91%    .92%    .93%    .94%    .92% 
As restated    1.14%    1.09%    1.02%    1.00%    1.04%    1.11% 
Class B shares:                         
As previously reported    1.41%    1.43%    1.44%    1.44%    1.44%    1.43% 
As restated    1.65%    1.61%    1.54%    1.51%    1.54%    1.62% 
Class C shares:                         
As previously reported    1.64%    1.64%    1.66%    1.66%    1.67%    1.66% 
As restated    1.88%    1.82%    1.76%    1.73%    1.77%    1.85% 
Class Z shares:                         
As previously reported    .84%    .85%    .86%             
As restated    1.08%    1.03%    .96%             

This restatement has no impact on the fund's previously reported net assets, net investment income, net asset value per share or total return.

In addition, the statement of investments, the statement of assets and liabilities, the statement of operations and the statement of changes in net assets were also restated as follows:

    October 31, 2006     
    As Previously    October 31, 2006 
    Reported    As Restated 
Portfolio of Investments ($):         
Total investments    595,551,839    633,896,839 
Identified cost    559,724,479    597,539,339 
Other assets and liabilities    3,583,617    (34,761,383) 
Statement of Assets and Liabilities ($):     
Total investments in securities, at value    595,551,839    633,896,839 
Identified cost    559,724,479    597,539,339 
Interest Receivable    10,109,496    10,606,547 
Total assets    615,612,257    654,454,308 
Payable for floating rate notes issued    —    38,345,000 
Interest and related expenses payable    —    497,051 
Total liabilities    16,476,801    55,318,852 
Accumulated net realized gain         
(loss) on investments    (64,725,317)    (65,255,457) 
Net unrealized appreciation         
(depreciation) on investments    35,827,360    36,357,500 

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

    October 31, 2006     
    As Previously    October 31, 2006 
    Reported    As Restated 
Statement of Operations ($):         
Investment income—Interest    15,881,238    16,604,031 
Expenses—Interest and related expenses    —    722,793 
Total expenses    2,738,195    3,460,988 
Net expenses    2,713,961    3,436,754 
Net realized gain (loss) on investments         
and option transactions    3,937,194    3,894,949 
Net Realized Gain (Loss)    3,916,281    3,874,036 
Net unrealized appreciation         
(depreciation) on investments    8,825,959    8,868,204 
Statement of Changes in Net Assets ($):     
Net Realized Gain (Loss) on investments    3,916,281    3,874,036 
Net unrealized appreciation         
(depreciation) on investments    8,825,959    8,868,204 

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INFORMATION ABOUT THE REVIEW AND APPROVAL 
OF THE FUND’S MANAGEMENT AGREEMENT (Unaudited) 

At a meeting of the Board of Trustees held on August 2, 2006, the Board considered the re-approval for an annual period (through September 5, 2007) of the fund’s Management Agreement, pursuant to which the Manager provides the fund with investment advisory and administrative services.The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board members received a presentation from representatives of the Manager regarding services provided to the fund and other funds in the Dreyfus fund complex, and discussed the nature, extent, and quality of the services provided to the fund pursuant to its Management Agreement.The Manager’s representatives reviewed the fund’s distribution of accounts and the relationships the Manager has with various intermediaries and the different needs of each. The Manager’s representatives noted the distribution channels for the fund as well as the diversity of distribution among the funds in the Dreyfus fund complex, and the Manager’s corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each distribution channel, including those of the fund. The Board also reviewed the number of shareholder accounts in the fund, as well as the fund’s asset size.

The Board members also considered the Manager’s research and portfolio management capabilities and that the Manager also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements. The Board members also considered the Manager’s extensive administrative, accounting and compliance infrastructure.

Comparative Analysis of the Fund’s Performance, Management Fee and Expense Ratio. The Board members reviewed the performance and placed significant emphasis on comparisons to a group of retail front-end load, general municipal debt funds (the “Performance Group”) and

T h e F u n d 39

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INFORMATION ABOUT THE    REVIEW AND    APPROVAL    OF THE 
FUND’S MANAGEMENT    AGREEMENT    (Unaudited)    (continued) 

to a larger universe of funds, consisting of all retail and institutional general municipal debt funds (the “Performance Universe”), selected and provided by Lipper, Inc., an independent provider of investment company data.The Board was provided with a description of the methodology Lipper used to select the Performance Group and Performance Universe, as well as the Expense Group and Expense Universe (discussed below). The Board members discussed the results of the comparisons. The Board members noted that the fund’s yield performance for the past ten one-year periods ended June 30, 2006 (1997-2006) was higher than the Performance Group and the Performance Universe medians for each reported time period.The Board members then reviewed the fund’s total return performance for various periods ended June 30, 2006 and noted that the fund’s performance was higher than the Performance Group medians for the one-, two- and three-year periods, and lower for the four-, five- and ten-year periods, and higher than the Performance Universe medians for the one-, two-, three- and four-year periods and lower for the five- and ten-year periods.The Board members discussed with representatives of the Manager the reasons for underperformance of the fund’s total return compared to the Lipper medians for the applicable periods, and the Manager’s efforts to improve performance. The Board also received a presentation from the fund’s primary portfolio manager during which he discussed the fund’s investment strategy and the factors that affected the fund’s performance.

The Board members also discussed the fund’s management fee and expense ratio and reviewed the range of management fees and expense ratios as compared to a comparable group of funds (the “Expense Group”) and a broader group of funds (the “Expense Universe”), each selected and provided by Lipper.The Board noted that the fund’s management fee and total expense ratio were higher than the Expense Group and Expense Universe medians.

Representatives of the Manager reviewed with the Board members the fees paid to the Manager or its affiliates by mutual funds managed by the Manager or its affiliates included in the same category as the fund (the “Similar Funds”). The Manager’s representatives explained the

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nature of the Similar Funds and the differences, from the Manager’s perspective, in providing services to the Similar Funds as compared to managing and providing services to the fund.The Manager’s representatives also reviewed the costs associated with distribution through intermediaries.The Board members considered the relevance of the fee information provided for the Similar Funds managed by the Manager or its affiliates to evaluate the appropriateness and reasonableness of the fund’s management fee. The Board acknowledged that differences in fees paid by the Similar Funds seemed to be consistent with the services to be provided. Representatives of the Manager informed the Board members that there were no other accounts managed by the Manager or its affiliates with similar investment objectives, policies and strategies as the fund.

Analysis of Profitability and Economies of Scale. The Manager’s representatives reviewed the dollar amount of expenses allocated and profit received by the Manager and the method used to determine such expenses and profit.The Board members evaluated the profitability analysis in light of the relevant circumstances for the fund, including the decline in fund assets from the prior year, and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders.The Board noted that it appeared that the benefits of any economies of scale also would be appropriately shared with shareholders through increased investment in fund management and administration resources.The Board members also considered potential benefits to the Manager from acting as investment adviser to the fund and noted that there were no soft dollar arrangements in effect with respect to trading the fund’s portfolio.

It was noted that the Board members should consider the Manager’s profitability with respect to the fund as part of their evaluation of whether the fees under the Management Agreement bear a reasonable relationship to the mix of services provided by the Manager, including the nature, extent, and quality of such services and that a discussion of

The Fund 41

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INFORMATION ABOUT THE    REVIEW AND    APPROVAL    OF THE 
FUND ’S MANAGEMENT    AGREEMENT    (Unaudited)    (continued) 

economies of scale is predicated on increasing assets and that, if a fund’s assets had been decreasing, the possibility that the Manager may have realized any economies of scale would be less.The Board members also discussed the profitability percentage determined by appropriate court cases to be reasonable given the services rendered to investment companies. It was noted that the profitability percentage for managing the fund was not unreasonable given the fund’s overall performance and generally superior service levels provided.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to continuation of the fund’s Management Agreement. Based on the discussions and considerations described above, the Board made the following conclusions and determinations.

  • The Board concluded that the nature, extent, and quality of the ser- vices provided by the Manager are adequate and appropriate.
  • The Board was generally satisfied with the fund’s overall perfor- mance and with the Manager’s efforts to improve performance.
  • The Board concluded that the fee paid to the Manager by the fund was reasonable in light of the services provided, comparative perfor- mance and expense and advisory fee information, costs of the services provided, and profits to be realized and benefits derived or to be derived by the Manager from its relationship with the fund.
  • The Board determined that the economies of scale which may accrue to the Manager and its affiliates in connection with the management of the fund had been adequately considered by the Manager in con- nection with the management fee rate charged to the fund and that, to the extent in the future it were to be determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

The Board members considered these conclusions and determinations, along with the information received on a routine and regular basis throughout the year, and, without any one factor being dispositive, the Board determined that re-approval of the fund’s Management Agreement was in the best interests of the fund and its shareholders.

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PMB.0022SA1006A 3/30/07 3:25 PM Page 44

  N O T E S

PMB.0022SA1006A 3/30/07 3:25 PM Page 45

PMB.0022SA1006A 3/30/07 3:25 PM Page 46

For More    Information 
 
Dreyfus Premier    Transfer Agent & 
Municipal Bond Fund    Dividend Disbursing Agent 
200 Park Avenue     
    Dreyfus Transfer, Inc. 
New York, NY 10166     
    200 Park Avenue 
Manager    New York, NY 10166 
The Dreyfus Corporation    Distributor 
200 Park Avenue     
    Dreyfus Service Corporation 
New York, NY 10166     
    200 Park Avenue 
Custodian    New York, NY 10166 
The Bank of New York     
One Wall Street     
New York, NY 10286     

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 1-202-551-8090.

Information regarding how the fund voted proxies relating to portfolio securities for the 12-month period ended June 30, 2006, is available on the SEC’s website at http://www.sec.gov and without charge, upon request, by calling 1-800-645-6561.

© 2006 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. Schedule of Investments.

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers.

Not applicable. [CLOSED-END FUNDS ONLY]

Item 10. Submission of Matters to a Vote of Security Holders.

The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders.

Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.

Item 11. 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) The Registrant has revised its internal control over financial reporting with respect to a change in accounting for investments in certain inverse floater structures. As a consequence of this change, Dreyfus Premier Municipal Bond Fund has restated one or more sections of certain of its historical financial statements to account for these investments as secured borrowings and to report the related income and expense.

Item 12. 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/ J. David Officer 
    J. David Officer 
    President 
 
Date:    April 5, 2007 
 
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/ J. David Officer 
    J. David Officer 
    President 
 
Date:    April 5, 2007 
 
By:    /s/ James Windels 
    James Windels 
    Treasurer 
 
Date:    April 5, 2007 
 
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)