N-CSR 1 form022.htm ANNUAL REPORT form022
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
 
 
FORM N-CSR 
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT 
INVESTMENT COMPANIES 
 
Investment Company Act file number 811-4764 
 
DREYFUS PREMIER MUNICIPAL BOND FUND 
(Exact name of Registrant as specified in charter) 
 
 
c/o The Dreyfus Corporation 
200 Park Avenue 
New York, New York 10166 
(Address of principal executive offices) (Zip code) 
 
Mark N. Jacobs, Esq. 
200 Park Avenue 
New York, New York 10166 
(Name and address of agent for service) 
 
Registrant's telephone number, including area code: (212) 922-6000 

Date of fiscal year end:    4/30 
Date of reporting period:    4/30/07 

        FORM N-CSR 
Item 1.    Reports to Stockholders.     

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

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

    Contents 
 
    THE FUND 
2    A Letter from the CEO 
3    Discussion of Fund Performance 
6    Fund Performance 
8    Understanding Your Fund’s Expenses 
8    Comparing Your Fund’s Expenses 
    With Those of Other Funds 
9    Statement of Investments 
23    Statement of Assets and Liabilities 
24    Statement of Operations 
25    Statement of Changes in Net Assets 
27    Financial Highlights 
31    Notes to Financial Statements 
40    Report of Independent Registered 
    Public Accounting Firm 
41    Important Tax Information 
42    Proxy Results 
43    Board Members Information 
46    Officers of the Fund 
 
    FOR MORE INFORMATION 
    Back Cover 

The Fund

Dreyfus Premier 
Municipal Bond Fund 

A LETTER FROM THE CEO

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Premier Municipal Bond Fund, covering the 12-month period from May 1, 2006, through April 30, 2007.

The U.S. economy moderated throughout the reporting period as cooling housing markets took their toll on consumer and business spending.Yet, labor markets remained quite strong, and key measures of inflation stayed stubbornly above the Federal Reserve’s stated “comfort zone.” Dreyfus’ chief economist believes that these seemingly conflicting signals may be the result of a lag between the current downturn in housing activity and its likely dampening effect on housing-related employment. In his view, inflationary pressures may moderate over the coming months in an environment of modestly higher unemployment rates and sub-par economic growth.

The likely implications of this economic outlook include a long pause in Fed policy before an eventual easing of short-term interest rates, a modest drop in 10-year Treasury bond yields, decelerating corporate earnings, high levels of mergers-and-acquisitions activity and a probable continuation of the ongoing shift in investor sentiment toward higher quality stocks.We expect these developments to produce both challenges and opportunities in the municipal fixed-income markets, and your financial advisor can help determine the appropriate tax-advantaged and asset allocation strategy for you.

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

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 12-month period ended April 30, 2007, the fund achieved total returns of 5.94% for Class A shares, 5.48% for Class B shares, 5.16% for Class C shares and 6.00% for Class Z shares.1 The Lehman Brothers Municipal Bond Index (the “Index”), the fund’s benchmark, achieved a total return of 5.78% 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 5.23% for the reporting period.3

Municipal bonds fared relatively well during the reporting period in an environment of moderate economic growth and stabilizing short-term interest rates.The fund participated fully in the market’s strength, with its Class A and Class Z shares producing higher returns than its benchmark and Lipper category average, primarily due to the fund’s emphasis on income-oriented securities, including municipal bonds issued on behalf of corporations.

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.

T h e F u n d 3

DISCUSSION OF FUND PERFORMANCE (continued)

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 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?

When the reporting period began, the U.S. economy was growing robustly, energy prices were rising to record levels and the Federal Reserve Board (the “Fed”) continued to raise short-term interest rates in an effort to forestall an acceleration of inflation. However, conditions changed significantly over the summer and fall of 2006, when weakness in the housing and automobile sectors began to weigh on U.S. economic growth, falling energy prices alleviated inflation concerns and the Fed refrained from further rate hikes for the remainder of the reporting period. As investors’ inflation fears waned, municipal bonds rallied. The market also benefited from supply-and-demand influences, including robust demand for long-term municipal bonds from non-traditional investors such as hedge funds and highly leveraged institutional accounts.

While turmoil in overseas equity markets and the U.S. sub-prime mortgage sector led to a bout of heightened market volatility in late February and early March 2007, bond prices subsequently rebounded, erasing previous losses by the end of the reporting period.As a result, the majority of the benchmark’s and fund’s returns were derived from current income.

4

The fund benefited in this environment from its holdings of income-oriented bonds, including seasoned, core holdings that were acquired when yields were higher than the yields available today. The fund received especially strong income contributions from lower-rated holdings, such as bonds issued on behalf of airlines and the states’ settlement of litigation with U.S. tobacco companies. The fund’s returns also were supported by a modestly long average duration, which enabled the fund to participate more fully in higher income toward the longer end of the market’s maturity range.

What is the fund’s current strategy?

Recent U.S. economic data has been mixed, with signs of greater economic weakness emerging at the same time that inflation has remained stubbornly above the Fed’s “comfort zone.” As a result, it seems to us that the Fed is unlikely to raise or reduce short-term interest rates any time soon.We therefore expect to maintain the fund’s modestly long average duration and its focus on income-oriented securities until we see signs that the Fed is ready to change its policy stance.

June 1, 2007

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. 

T h e F u n d 5

FUND PERFORMANCE

† Source: Lipper Inc. 
Past performance is not predictive of future performance. 
The above graph compares a $10,000 investment made in Class A, Class B and Class C shares of Dreyfus Premier 
Municipal Bond Fund on 4/30/97 to a $10,000 investment made in the Lehman Brothers Municipal Bond Index (the 
“Index”) on that date.All dividends and capital gain distributions are reinvested. Performance for Class Z shares will vary 
from the performance of Class A, Class B and Class C shares shown above due to differences in charges and expenses. 
The fund invests primarily in municipal securities and its performance shown in the line graph takes into account the 
maximum initial sales charge on Class A shares and all other applicable fees and expenses for Class A, Class B and 
Class C shares.The Index, unlike the fund, is an unmanaged total return performance benchmark for the long-term, 
investment-grade, tax-exempt bond market, calculated by using municipal bonds selected to be representative of the 
municipal market overall.The Index does not take into account charges, fees and other expenses which can contribute to 
the Index potentially outperforming or underperforming the fund. Further information relating to fund performance, 
including expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and 
elsewhere in this report. 

6

Average Annual Total Returns as of 4/30/07             
 
    Inception                From 
    Date    1 Year    5 Years    10 Years    Inception 
Class Z shares 10/13/04    6.00%    —    —    4.61% 
Class A shares                 
with maximum sales charge (4.5%)    1.16%    3.89%    4.08%     
without sales charge    5.94%    4.85%    4.55%     
Class B shares                 
with applicable redemption charge †    1.48%    3.99%    4.25%     
without redemption    5.48%    4.33%    4.25%     
Class C shares                 
with applicable redemption charge ††    4.16%    4.08%    3.79%     
without redemption    5.16%    4.08%    3.79%     
 
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 
Performance for Class B shares assumes the conversion of Class B shares to Class A shares at the end of the sixth year 
following the date of purchase.                 
†    The maximum contingent deferred sales charge for Class B shares is 4%. After six years Class B shares convert to 
    Class A shares.                 
††    The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the 
    date of purchase.                 

T h e F u n d 7

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 November 1, 2006 to April 30, 2007. 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 April 30, 2007         
    Class A    Class B    Class C    Class Z 
Expenses paid per $1,000 †    $ 5.84    $ 8.43    $ 9.52    $ 5.60 
Ending value (after expenses)    $1,014.60    $1,012.70    $1,010.80    $1,014.80 

C O M P A R I N G Y O U R    F U N D ’ S E X P E N S E S 
W I T H T H O S E O F    O T H E R F U N D S ( U n a u d i t e d ) 

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 April 30, 2007 
    Class A    Class B    Class C    Class Z 
Expenses paid per $1,000 †    $ 5.86    $ 8.45    $ 9.54    $ 5.61 
Ending value (after expenses)    $1,018.99    $1,016.41    $1,015.32    $1,019.24 
 
† Expenses are equal to the fund’s annualized expense ratio of 1.17% for Class A, 1.69% for Class B, 1.91% for 
Class C and 1.12% for Class Z Shares; multiplied by the average account value over the period, multiplied by 
181/365 (to reflect the one-half year period).             

8

STATEMENT    OF    INVESTMENTS 
April 30, 2007         

Long-Term Municipal    Coupon    Maturity    Principal     
Investments—104.6%    Rate (%)    Date    Amount ($)    Value ($) 
Alabama—1.3%                 
Jefferson County,                 
Sewer Revenue (Capital                 
Improvement Warrants)                 
(Insured; FGIC)    5.13    2/1/09    4,000,000 a    4,136,280 
University of Alabama,                 
HR (Insured; MBIA)    5.75    9/1/10    3,000,000 a    3,219,210 
Arizona—.7%                 
Arizona Health Facilities                 
Authority, Health Care                 
Facilities Revenue (The                 
Beatitudes Campus Project)    5.20    10/1/37    4,000,000    4,034,200 
Arkansas—.8%                 
Lake Hamilton School District                 
Number 005, GO Limited Tax                 
Capital Improvement                 
(Insured; AMBAC)    5.50    4/1/29    4,600,000    4,667,758 
California—12.0%                 
California,                 
GO    5.63    5/1/10    2,530,000 a    2,696,929 
California,                 
GO (Various Purpose)    5.25    11/1/27    5,000,000    5,356,250 
California Department of Water                 
Resources, Power Supply Revenue    6.00    5/1/12    6,000,000 a    6,705,540 
California Educational Facilities                 
Authority, Revenue (University                 
of Southern California)    5.00    10/1/33    5,000,000    5,218,200 
California Health Facilities                 
Financing Authority, Revenue                 
(Sutter Health)    5.25    11/15/46    11,300,000    11,945,004 
California Pollution Control                 
Financing Authority, PCR    5.90    6/1/14    12,710,000 b,c    14,393,694 
Golden State Tobacco                 
Securitization Corporation,                 
Tobacco Settlement                 
Asset-Backed Bonds    7.88    6/1/13    2,170,000 a    2,648,333 
Golden State Tobacco                 
Securitization Corporation,                 
Tobacco Settlement                 
Asset-Backed Bonds    7.90    6/1/13    1,920,000 a    2,345,587 

T h e F u n d 9

STATEMENT OF INVESTMENTS (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
California (continued)                 
Golden State Tobacco                 
Securitization Corporation,                 
Tobacco Settlement                 
Asset-Backed Bonds    5.75    6/1/47    10,840,000    11,605,954 
Lincoln, Community Facilities                 
District Number 2003-1,                 
Special Tax Bonds (Lincoln                 
Crossing Project)    6.00    9/1/34    3,185,000    3,314,884 
Port of Oakland,                 
Revenue (Insured; FGIC)    5.50    11/1/20    4,085,000    4,371,440 
Colorado—5.4%                 
Broomfield City and County,                 
COP (Open Space, Park and                 
Recreation Facilities Lease                 
Purchase Agreement)                 
(Insured; AMBAC)    5.50    12/1/20    1,000,000    1,057,660 
Colorado Educational and Cultural                 
Facilities Authority, LR                 
(Community Colleges of                 
Colorado System Headquarters                 
Project) (Insured; AMBAC)    5.50    12/1/21    1,100,000    1,180,619 
Colorado Housing Finance Authority                 
(Single Family Program)                 
(Collateralized; FHA)    7.15    10/1/30    55,000    55,818 
Colorado Housing Finance Authority                 
(Single Family Program)                 
(Collateralized; FHA)    6.60    8/1/32    3,010,000    3,171,998 
Denver City and County,                 
Airport Revenue (Insured; AMBAC)    6.00    11/15/17    5,000,000    5,324,550 
E-470 Public Highway Authority,                 
Revenue (Insured; MBIA)    5.75    9/1/10    5,500,000 a    5,941,485 
Northwest Parkway Public Highway                 
Authority, Revenue    7.13    6/15/41    8,250,000    8,876,340 
Northwest Parkway Public Highway                 
Authority, Revenue                 
(Insured; AMBAC)    0.00    6/15/27    6,125,000    1,945,606 
University of Colorado Hospital                 
Authority, Revenue    5.25    11/15/39    3,810,000    3,955,733 
Connecticut—5.1%                 
Connecticut    5.75    6/15/11    8,000,000 b,c    8,483,080 

10

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Connecticut (continued)                 
Connecticut    5.50    12/15/15    7,400,000 b,c    8,337,765 
Connecticut Health and Educational                 
Facilities Authority, Revenue                 
(University of Hartford Issue)                 
(Insured; Radian)    5.63    7/1/26    4,345,000    4,707,981 
Mashantucket Western Pequot Tribe,             
Special Revenue    5.75    9/1/27    8,000,000 b    8,185,600 
Florida—1.4%                 
Highlands County Health Facilities                 
Authority, HR (Adventist                 
Health System/Sunbelt                 
Obligated Group)    6.00    11/15/11    2,500,000 a    2,753,425 
Highlands County Health Facilities                 
Authority, HR (Adventist                 
Health System/Sunbelt                 
Obligated Group)    5.25    11/15/36    5,000,000    5,240,750 
Georgia—1.7%                 
College Park Business and                 
Industrial Development                 
Authority, Revenue (Civic                 
Center Project) (Insured; AMBAC)    5.75    9/1/10    4,250,000 a    4,593,952 
Georgia    5.25    7/1/10    5,000,000 a    5,237,900 
Illinois—4.3%                 
Carol Stream,                 
First Mortgage Revenue                 
(Windsor Park Manor Project)    6.50    12/1/07    400,000    405,268 
Chicago,                 
SFMR (Collateralized: FHLMC,                 
FNMA and GNMA)    6.45    9/1/29    1,785,000    1,800,922 
Chicago,                 
SFMR (Collateralized: FHLMC,                 
FNMA and GNMA)    5.50    12/1/42    5,000,000    5,483,200 
Chicago O’Hare International                 
Airport, Special Facilities                 
Revenue (American                 
Airlines Inc. Project)    8.20    12/1/24    4,000,000    4,052,000 
Illinois Development Finance                 
Authority, Revenue (Community                 
Rehabilitation Providers                 
Facilities Acquisition Program)    8.75    3/1/10    87,000    87,739 

T h e F u n d 11

STATEMENT OF INVESTMENTS (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Illinois (continued)                 
Illinois Development Finance                 
Authority, Revenue (Community                 
Rehabilitation Providers                 
Facilities Acquisition Program)    8.25    8/1/12    216,484    186,826 
Illinois Educational Facilities                 
Authority, Revenue                 
(Northwestern University)    5.00    12/1/38    7,500,000    7,830,900 
Metropolitan Pier and Exposition                 
Authority, Dedicated State Tax                 
Revenue (McCormick Place                 
Expansion Project) (Insured; MBIA)    5.50    6/15/23    5,000,000    5,387,400 
Kansas—1.4%                 
Sedgwick and Shawnee Counties,                 
SFMR (Mortgage-Backed                 
Securities Program)                 
(Collateralized: FNMA and GNMA)    5.55    6/1/38    2,790,000    2,993,670 
Wichita,                 
HR (Via Christi Health System, Inc.)    6.25    11/15/19    2,000,000    2,184,880 
Wichita,                 
HR (Via Christi Health System, Inc.)    6.25    11/15/20    3,000,000    3,277,320 
Kentucky—2.3%                 
Mount Sterling,                 
LR (Kentucky League of Cities                 
Funding Trust Program)    6.10    3/1/18    5,500,000    6,405,520 
Pendleton County,                 
Multi-County LR (Kentucky                 
Association of Counties                 
Leasing Trust Program)    6.40    3/1/19    6,000,000    6,987,000 
Louisiana—.5%                 
Louisiana Housing Finance Agency,                 
SFMR (Home Ownership Program)                 
(Collateralized: FNMA and GNMA)    6.40    12/1/30    1,720,000    1,746,144 
Saint James Parish,                 
SWDR (Freeport-McMoRan                 
Partnership Project)    7.70    10/1/22    1,000,000    1,024,250 
Maryland—.4%                 
Maryland Energy Financing                 
Administration, SWDR                 
(Wheelabrator Water Technologies                 
Baltimore LLC Projects)    6.45    12/1/16    2,100,000    2,145,444 

12

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Massachusetts—1.9%                 
Massachusetts Development Finance             
Agency, Revenue (Simmons                 
College Issue) (Insured; XLCA)    5.25    10/1/26    4,860,000    5,460,793 
Massachusetts Industrial                 
Finance Agency, Water                 
Treatment Revenue                 
(Massachusetts American                 
Hingham Project)    6.95    12/1/35    2,450,000    2,483,859 
Route 3 North Transportation                 
Improvement Association, LR                 
(Insured; MBIA)    5.75    6/15/17    3,000,000    3,178,860 
Michigan—6.5%                 
Dearborn Economic Development                 
Corporation, HR (Oakwood                 
Obligated Group)                 
(Insured; FGIC)    5.88    11/15/25    4,950,000    5,006,430 
Detroit School District,                 
School Building and Site                 
Improvement Bonds (GO—                 
Unlimited Tax) (Insured; FGIC)    5.00    5/1/28    5,000,000    5,200,900 
Michigan Building Authority,                 
Revenue (Residual Certificates)    5.50    10/15/17    10,000,000 b,c    10,705,800 
Michigan Strategic Fund,                 
SWDR (Genesee Power                 
Station Project)    7.50    1/1/21    7,725,000    7,725,232 
Pontiac Tax Increment Finance                 
Authority, Tax Increment                 
Revenue (Development Area                 
Number 3)    6.25    6/1/22    3,250,000    3,480,490 
Romulus Economic Development                 
Corporation, Limited Obligation                 
EDR (Romulus HIR Limited                 
Partnership Project) (Insured;                 
ITT Lyndon Property                 
Insurance Company)    7.00    11/1/15    5,000,000    6,019,350 
Minnesota—1.0%                 
Chaska,                 
Electric Revenue    6.00    10/1/10    2,000,000 a    2,147,400 
Minnesota Housing Finance Agency,             
Single Family Mortgage    5.95    1/1/17    475,000    479,251 

T h e F u n d 13

STATEMENT OF INVESTMENTS (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Minnesota (continued)                 
Saint Paul Housing and                 
Redevelopment Authority,                 
Hospital Facility Revenue                 
(HealthEast Project)    6.00    11/15/35    3,000,000    3,312,570 
Mississippi—.3%                 
Mississippi Home Corporation,                 
SFMR (Collateralized; GNMA)    6.95    12/1/31    1,970,000    1,994,704 
Missouri—3.0%                 
Missouri Development Finance                 
Board, Infrastructure                 
Facilities Revenue (Branson                 
Landing Project)    5.38    12/1/27    2,470,000    2,585,547 
Missouri Development Finance                 
Board, Infrastructure                 
Facilities Revenue (Branson                 
Landing Project)    5.00    6/1/35    2,500,000    2,583,850 
Missouri Health and Educational                 
Facilities Authority, Health                 
Facilities Revenue (Saint                 
Anthony’s Medical Center)    6.13    12/1/10    4,000,000 a    4,350,160 
Missouri Housing Development                 
Commission, SFMR                 
(Homeownership Loan Program)                 
(Collateralized: FHLMC, FNMA                 
and GNMA)    5.00    9/1/37    2,500,000    2,547,225 
Missouri Housing Development                 
Commission, SFMR                 
(Homeownership Loan Program)                 
(Collateralized: FNMA and GNMA)    6.30    9/1/25    105,000    105,999 
Saint Louis,                 
Parking Revenue (Insured; MBIA)    5.00    12/15/31    5,000,000    5,287,400 
New Jersey—7.5%                 
New Jersey Economic Development                 
Authority, Revenue                 
(Insured; AMBAC)    5.25    6/15/15    4,990,000 b,c    5,291,995 
New Jersey Economic Development                 
Authority, Revenue                 
(Insured; AMBAC)    5.25    6/15/16    4,990,000 b,c    5,291,995 

14

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New Jersey (continued)                 
New Jersey Economic Development             
Authority, Revenue (School                 
Facilities-Construction 2001)                 
(Insured; AMBAC)    5.25    6/15/11    10,000 a    10,605 
New Jersey Economic Development             
Authority, Revenue (School                 
Facilities-Construction 2001)                 
(Insured; AMBAC)    5.25    6/15/11    10,000 a    10,605 
New Jersey Turnpike Authority,                 
Turnpike Revenue                 
(Insured; MBIA)    5.50    1/1/10    6,000,000 a    6,278,820 
New Jersey Turnpike Authority,                 
Turnpike Revenue                 
(Insured; MBIA)    6.00    1/1/11    12,700,000 b,c    13,704,253 
Tobacco Settlement Financing                 
Corporation of New Jersey,                 
Tobacco Settlement                 
Asset-Backed Bonds    7.00    6/1/13    5,135,000 a    6,036,911 
Tobacco Settlement Financing                 
Corporation of New Jersey,                 
Tobacco Settlement                 
Asset-Backed Bonds    0.00    6/1/41    18,500,000    2,833,090 
Tobacco Settlement Financing                 
Corporation of New Jersey,                 
Tobacco Settlement                 
Asset-Backed Bonds    5.00    6/1/41    5,000,000    4,930,500 
New Mexico—1.2%                 
Farmington,                 
PCR (Public Service Company of             
New Mexico San Juan Project)    6.38    4/1/22    1,430,000    1,461,431 
Jicarilla Apache Nation,                 
Revenue    5.50    9/1/23    5,000,000    5,395,000 
New York—6.9%                 
New York City Industrial                 
Development Agency, Special                 
Facility Revenue (American                 
Airlines, Inc. John F. Kennedy                 
International Airport Project)    7.13    8/1/11    9,000,000    9,506,070 

T h e F u n d 15

S TAT E M E N T O F I N V E S T M E N T S (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
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    3,724,380 
New York City Municipal Water                 
Finance Authority, Water and                 
Sewer System Revenue    6.00    6/15/10    3,085,000 a    3,327,049 
New York Liberty Development                 
Corporation, Revenue (Goldman                 
Sachs Headquarters Issue)    5.25    10/1/35    11,500,000    13,188,775 
New York State Dormitory                 
Authority, Revenue (New York                 
University) (Insured; MBIA)    6.00    7/1/17    3,500,000    4,131,295 
New York State Dormitory                 
Authority, Revenue (Rochester                 
Institute of Technology)                 
(Insured; AMBAC)    5.25    7/1/24    3,345,000    3,570,520 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational Facilities)    7.50    5/15/13    2,500,000    2,978,750 
North Carolina—2.2%                 
North Carolina Eastern Municipal                 
Power Agency, Power System                 
Revenue    7.00    1/1/13    3,500,000    3,866,065 
North Carolina Eastern Municipal                 
Power Agency, Power System                 
Revenue (Insured; ACA)    6.75    1/1/26    5,000,000    5,382,900 
North Carolina Medical Care                 
Commission, Revenue (North                 
Carolina Housing Foundation, Inc.)             
(Insured; ACA)    6.45    8/15/20    1,000,000    1,085,800 
North Carolina Medical Care                 
Commission, Revenue (North                 
Carolina Housing Foundation, Inc.)             
(Insured; ACA)    6.63    8/15/30    2,565,000    2,784,821 
Ohio—6.7%                 
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    3,307,530 

16

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Ohio (continued)                 
Columbus City School District,                 
School Facilities Construction                 
and Improvement (Insured; FSA)    5.00    12/1/14    5,000,000 a    5,408,150 
Columbus City School District,                 
School Facilities Construction                 
and Improvement (Insured; FSA)    4.25    12/1/32    5,330,000    5,179,854 
Cuyahoga County,                 
Hospital Facilities Revenue                 
(UHHS/CSAHS-Cuyahoga, Inc. and                 
CSAHS/UHHS-Canton, Inc. Project)    7.50    1/1/30    7,000,000    7,672,910 
Cuyahoga County,                 
Hospital Improvement Revenue                 
(The Metrohealth Systems Project)    6.15    2/15/09    3,115,000 a    3,275,921 
Hamilton County,                 
Sales Tax Refunding and                 
Improvement Bonds                 
(Insured; AMBAC)    0.00    12/1/25    14,865,000    6,644,060 
Ohio Water Development Authority,                 
PCR (The Cleveland Electric                 
Illuminating Company Project)                 
(Insured; ACA)    6.10    8/1/20    7,300,000    7,475,492 
Oklahoma—2.0%                 
McGee Creek Authority,                 
Water Revenue (Insured; MBIA)    6.00    1/1/13    8,025,000    8,539,563 
Oklahoma Development Finance                 
Authority, Student Housing                 
Revenue (Seminole State                 
College Project)    5.13    9/1/36    3,000,000    3,101,010 
Oregon—.6%                 
Portland,                 
Sewer System Revenue                 
(Insured; FGIC)    5.75    8/1/10    3,500,000 a    3,722,390 
Pennsylvania—1.7%                 
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    4,516,025 
Lehman Municipal Trust Receipts                 
(Pennsylvania Economic                 
Development Financing Authority)    6.00    6/1/31    5,000,000 b,c    5,194,375 

T h e F u n d 17

STATEMENT OF INVESTMENTS (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
South Carolina—3.6%                 
Greenville County School District,                 
Installment Purchase Revenue                 
(Building Equity Sooner                 
for Tomorrow)    5.50    12/1/12    10,900,000 a,b,c    11,938,607 
Greenville Hospital System,                 
Hospital Facilities Revenue                 
(Insured; AMBAC)    5.50    5/1/26    4,385,000    4,675,199 
Securing Assets for Education,                 
Installment Purchase Revenue                 
(Berkeley County School                 
District Project)    5.13    12/1/30    4,000,000    4,243,960 
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    8,940,853 
Memphis Center City Revenue                 
Finance Corporation, Sports                 
Facility Revenue (Memphis                 
Redbirds Baseball                 
Foundation Project)    6.50    9/1/28    8,000,000    8,012,240 
Shelby County Health, Educational             
and Housing Facility Board,                 
MFHR (Cameron at Kirby Parkway             
and Stonegate Apartments)    7.25    7/1/23    2,685,000 d    731,367 
Texas—4.8%                 
Alliance Airport Authority Inc.,                 
Special Facilities Revenue                 
(American Airlines, Inc. Project)    5.25    12/1/29    3,000,000    2,919,390 
Austin Convention Enterprises                 
Inc., Convention Center Hotel                 
First Tier Revenue    6.70    1/1/11    5,000,000 a    5,501,850 
Cities of Dallas and Fort Worth,                 
Dallas/Fort Worth                 
International Airport,                 
Facility Improvement                 
Corporation Revenue                 
(American Airlines, Inc.)    7.25    11/1/30    4,505,000    4,510,811 

18

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Texas (continued)                 
Cities of Dallas and Fort Worth,                 
Dallas/Fort Worth                 
International Airport,                 
Facility Improvement                 
Corporation Revenue                 
(American Airlines, Inc.)    6.38    5/1/35    4,785,000    4,956,973 
Cities of Dallas and Fort Worth,                 
Dallas/Fort Worth                 
International Airport, Joint                 
Revenue (Insured; FSA)    5.50    11/1/21    3,000,000    3,249,180 
Texas Turnpike Authority,                 
Central Texas Turnpike System                 
Revenue (Insured; AMBAC)    5.75    8/15/38    3,500,000    3,801,455 
Wichita Falls,                 
Water and Sewer Revenue                 
(Insured; AMBAC)    5.38    8/1/11    3,000,000 a    3,195,270 
Washington—2.2%                 
Washington Public Power Supply                 
System, Revenue (Nuclear                 
Project Number 3) (Insured; MBIA)    7.13    7/1/16    10,425,000    12,972,453 
West Virginia—.9%                 
West Virginia,                 
GO State Road (Insured; MBIA)    5.75    6/1/10    2,500,000 a    2,671,550 
West Virginia Hospital Finance                 
Authority, HR (Charleston Area                 
Medical Center, Inc.)    6.00    9/1/10    2,440,000 a    2,624,513 
Wisconsin—4.5%                 
Badger Tobacco Asset                 
Securitization Corporation,                 
Tobacco Settlement                 
Asset-Backed Bonds    6.13    6/1/27    4,745,000    5,086,925 
Badger Tobacco Asset                 
Securitization Corporation,                 
Tobacco Settlement                 
Asset-Backed Bonds    7.00    6/1/28    13,350,000    15,023,155 
Wisconsin Health and Educational                 
Facilities Authority, Revenue                 
(Aurora Health Care, Inc.)    6.40    4/15/33    5,500,000    6,097,960 

T h e F u n d 19

STATEMENT OF INVESTMENTS (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
Wyoming—.5%                 
Wyoming Student Loan Corporation,                 
Student Loan Revenue    6.25    6/1/29    2,500,000    2,637,275 
U.S. Related—6.3%                 
Children’s Trust Fund of Puerto                 
Rico, Tobacco Settlement                 
Asset-Backed Bonds    0.00    5/15/50    10,400,000    731,120 
Children’s Trust Fund of Puerto                 
Rico, Tobacco Settlement                 
Asset-Backed Bonds    0.00    5/15/55    10,000,000    373,900 
Puerto Rico Commonwealth                 
(Insured; MBIA)    5.65    7/1/15    4,000,000    4,459,680 
Puerto Rico Commonwealth,                 
Public Improvement                 
(Insured; MBIA)    5.25    7/1/13    6,000,000    6,510,180 
Puerto Rico Electric Power                 
Authority, Power Revenue                 
(Insured; MBIA)    5.00    7/1/32    5,500,000    5,786,990 
Puerto Rico Highways and                 
Transportation Authority,                 
Highway Revenue (Insured; FSA)    5.25    7/1/36    10,000,000    11,708,900 
Puerto Rico Highways and                 
Transportation Authority,                 
Transportation Revenue                 
(Insured; AMBAC)    5.25    7/1/38    6,000,000    7,083,180 
 
Total Investments (cost $582,507,530)            104.6%    611,637,674 
 
Liabilities, Less Cash and Receivables            (4.6%)    (26,882,911) 
 
Net Assets            100.0%    584,754,763 
 
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 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 April 30, 2007, these securities 
amounted to $91,527,164 or 15.7% of net assets.             
c Collateral for floating rate borrowings.                 
d Non-income producing security; interest payments in default.         

20

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 

T h e F u n d 21

STATEMENT OF INVESTMENTS (continued)

Summary of Combined Ratings (Unaudited)     
 
Fitch    or Moody’s    or    Standard & Poor’s    Value (%) † 
AAA    Aaa        AAA    44.8 
AA    Aa        AA    13.6 
A        A        A    12.6 
BBB    Baa        BBB    15.7 
BB    Ba        BB    .1 
B        B        B    3.8 
CCC    Caa        CCC    2.9 
Not Rated e    Not Rated e        Not Rated e    6.5 
                    100.0 
 
†    Based on total investments.             
e    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.             

22

STATEMENT    OF    ASSETS    AND    LIABILITIES 
April 30, 2007                 

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments    582,507,530    611,637,674 
Cash        451,213 
Receivable for investment securities sold        21,366,128 
Interest receivable        10,317,164 
Receivable for shares of Beneficial Interest subscribed        55,982 
Prepaid expenses        29,570 
        643,857,731 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(c)        427,023 
Payable for floating rate notes issued        38,345,000 
Payable for investment securities purchased        19,392,201 
Interest and related expenses payable        507,866 
Payable for shares of Beneficial Interest redeemed        324,708 
Accrued expenses        106,170 
        59,102,968 
Net Assets ($)        584,754,763 
Composition of Net Assets ($):         
Paid-in capital        617,476,690 
Accumulated net realized gain (loss) on investments        (61,852,070) 
Accumulated net unrealized appreciation         
(depreciation) on investments        29,130,143 
Net Assets ($)        584,754,763 

Net Asset Value Per Share             
    Class A    Class B    Class C    Class Z 
Net Assets ($)    256,046,853    11,799,091    10,274,421    306,634,398 
Shares outstanding    19,542,639    900,098    782,998    23,402,494 
Net Asset Value                 
Per Share ($)    13.10    13.11    13.12    13.10 
 
See notes to financial statements.             

T h e F u n d 23

STATEMENT OF OPERATIONS 
Year Ended April 30, 2007 

Investment Income ($):     
Interest Income    32,652,645 
Expenses:     
Management fee—Note 3(a)    3,276,242 
Shareholder servicing costs—Note 3(c)    1,689,278 
Interest and related expenses    1,462,457 
Distribution fees—Note 3(b)    143,464 
Custodian fees    79,090 
Registration fees    64,342 
Professional fees    63,039 
Prospectus and shareholder’s reports    47,019 
Trustees’ fees and expenses—Note 3(d)    8,243 
Loan commitment fees—Note 2    2,256 
Miscellaneous    45,783 
Total Expenses    6,881,213 
Less—reduction in custody fees     
due to earnings credits—Note 1(b)    (20,550) 
Net Expenses    6,860,663 
Investment Income—Net    25,791,982 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments and options transactions    7,287,689 
Net realized gain (loss) on financial futures    (20,913) 
Net Realized Gain (Loss)    7,266,776 
Net unrealized appreciation (depreciation) on investments    1,640,847 
Net Realized and Unrealized Gain (Loss) on Investments    8,907,623 
Net Increase in Net Assets Resulting from Operations    34,699,605 
 
See notes to financial statements.     

24

STATEMENT OF CHANGES IN NET ASSETS

        Year Ended April 30, 
    2007    2006 
Operations ($):         
Investment income—net    25,791,982    28,683,719 
Net realized gain (loss) on investments    7,266,776    2,226,941a 
Net unrealized appreciation         
(depreciation) on investments    1,640,847    (12,303,853)a 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    34,699,605    18,606,807 
Dividends to Shareholders from ($):         
Investment income—net:         
Class A shares    (11,054,595)    (12,089,440) 
Class B shares    (531,263)    (734,708) 
Class C shares    (351,765)    (353,775) 
Class Z shares    (13,825,064)    (15,473,039) 
Total Dividends    (25,762,687)    (28,650,962) 
Beneficial Interest Transactions ($):         
Net proceeds from shares sold:         
Class A shares    21,260,275    14,638,352 
Class B shares    881,966    1,822,106 
Class C shares    2,298,854    749,467 
Class Z shares    7,004,372    10,500,961 
Dividends reinvested:         
Class A shares    7,239,461    7,656,702 
Class B shares    324,589    412,672 
Class C shares    212,639    208,831 
Class Z shares    9,424,451    10,364,641 
Cost of shares redeemed:         
Class A shares    (34,765,023)    (39,175,744) 
Class B shares    (6,100,476)    (6,684,478) 
Class C shares    (1,502,168)    (846,094) 
Class Z shares    (39,085,135)    (41,143,018) 
Increase (Decrease) in Net Assets from         
Beneficial Interest Transactions    (32,806,195)    (41,495,602) 
Total Increase (Decrease) in Net Assets    (23,869,277)    (51,539,757) 
Net Assets ($):         
Beginning of Period    608,624,040    660,163,797 
End of Period    584,754,763    608,624,040 

T h e F u n d 25

STATEMENT OF CHANGES IN NET ASSETS (continued)

            Year Ended April 30, 
        2007    2006 
Capital Share Transactions:         
Class A b         
Shares sold    1,627,875    1,122,340 
Shares issued for dividends reinvested    553,508    586,081 
Shares redeemed    (2,664,815)    (2,996,844) 
Net Increase (Decrease) in Shares Outstanding    (483,432)    (1,288,423) 
Class B b         
Shares sold    67,550    139,569 
Shares issued for dividends reinvested    24,821    31,562 
Shares redeemed    (467,003)    (511,145) 
Net Increase (Decrease) in Shares Outstanding    (374,632)    (340,014) 
Class C         
Shares sold    176,250    57,163 
Shares issued for dividends reinvested    16,232    15,964 
Shares redeemed    (115,037)    (64,601) 
Net Increase (Decrease) in Shares Outstanding    77,445    8,526 
Class Z         
Shares sold    535,049    803,576 
Shares issued for dividends reinvested    720,799    793,459 
Shares redeemed    (2,993,455)    (3,150,800) 
Net Increase (Decrease) in Shares Outstanding    (1,737,607)    (1,553,765) 
 
a    These numbers have been restated. See Note 5.         
b    During the period ended April 30, 2007, 189,232 Class B shares representing $2,475,494 were automatically 
    converted to 189,270 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.         

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.

            Year Ended April 30,     
Class A Shares    2007    2006    2005    2004    2003 
Per Share Data ($):                     
Net asset value, beginning of period    12.91    13.12    12.81    13.04    12.99 
Investment Operations:                     
Investment income—net a    .57    .59    .59    .60    .65 
Net realized and unrealized                     
gain (loss) on investments    .18    (.21)    .31    (.24)    .04 
Total from Investment Operations    .75    .38    .90    .36    .69 
Distributions:                     
Dividends from investment income—net    (.56)    (.59)    (.59)    (.59)    (.64) 
Net asset value, end of period    13.10    12.91    13.12    12.81    13.04 
Total Return (%) b    5.94    2.93    7.18    2.80    5.45 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.16    1.09c    1.03c    1.00c    1.04c 
Ratio of net expenses                     
to average net assets    1.16    1.09c    1.02c    1.00c    1.04c 
Ratio of net investment income                     
to average net assets    4.33    4.51    4.54    4.57    4.95 
Portfolio Turnover Rate    68.06    48.31    48.30    91.43    92.94 
Net Assets, end of period ($ x 1,000)    256,047    258,504    279,612    293,083    321,936 
 
a    Based on average shares outstanding at each month end.                 
b    Exclusive of sales charge.                     
c    Ratio of total expenses to average net assets and ratio of net expenses to average net assets for prior 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.                     
See notes to financial statements.                     

T h e F u n d 27

FINANCIAL HIGHLIGHTS (continued)

            Year Ended April 30,     
Class B Shares    2007    2006    2005    2004    2003 
Per Share Data ($):                     
Net asset value, beginning of period    12.91    13.12    12.82    13.05    12.99 
Investment Operations:                     
Investment income—net a    .49    .52    .52    .53    .58 
Net realized and unrealized                     
gain (loss) on investments    .21    (.21)    .31    (.23)    .06 
Total from Investment Operations    .70    .31    .83    .30    .64 
Distributions:                     
Dividends from investment income—net    (.50)    (.52)    (.53)    (.53)    (.58) 
Net asset value, end of period    13.11    12.91    13.12    12.82    13.05 
Total Return (%) b    5.48    2.40    6.64    2.20    5.00 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.67    1.61c    1.54c    1.51c    1.54c 
Ratio of net expenses                     
to average net assets    1.67    1.61c    1.54c    1.51c    1.54c 
Ratio of net investment income                     
to average net assets    3.81    3.99    4.02    4.06    4.44 
Portfolio Turnover Rate    68.06    48.31    48.30    91.43    92.94 
Net Assets, end of period ($ x 1,000)    11,799    16,462    21,192    29,471    43,022 
 
a    Based on average shares outstanding at each month end.                 
b    Exclusive of sales charge.                     
c    Ratio of total expenses to average net assets and ratio of net expenses to average net assets for prior 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.                     
See notes to financial statements.                     

28

            Year Ended April 30,     
Class C Shares    2007    2006    2005    2004    2003 
Per Share Data ($):                     
Net asset value, beginning of period    12.93    13.14    12.83    13.06    13.01 
Investment Operations:                     
Investment income—net a    .47    .49    .49    .50    .55 
Net realized and unrealized                     
gain (loss) on investments    .19    (.21)    .32    (.23)    .05 
Total from Investment Operations    .66    .28    .81    .27    .60 
Distributions:                     
Dividends from investment income—net    (.47)    (.49)    (.50)    (.50)    (.55) 
Net asset value, end of period    13.12    12.93    13.14    12.83    13.06 
Total Return (%) b    5.16    2.18    6.40    2.06    4.67 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    1.89    1.82c    1.76c    1.73c    1.77c 
Ratio of net expenses                     
to average net assets    1.89    1.82c    1.76c    1.73c    1.77c 
Ratio of net investment income                     
to average net assets    3.58    3.78    3.81    3.84    4.18 
Portfolio Turnover Rate    68.06    48.31    48.30    91.43    92.94 
Net Assets, end of period ($ x 1,000)    10,274    9,121    9,158    11,261    13,330 
 
a    Based on average shares outstanding at each month end.                 
b    Exclusive of sales charge.                     
c    Ratio of total expenses to average net assets and ratio of net expenses to average net assets for prior 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.                     
See notes to financial statements.                     

T h e F u n d 29

FINANCIAL HIGHLIGHTS (continued)

            Year Ended April 30, 
Class Z Shares    2007    2006    2005 a 
Per Share Data ($):             
Net asset value, beginning of period    12.91    13.12    13.09 
Investment Operations:             
Investment income—net b    .57    .60    .32 
Net realized and unrealized             
gain (loss) on investments    .19    (.21)    .03 
Total from Investment Operations    .76    .39    .35 
Distributions:             
Dividends from investment income—net    (.57)    (.60)    (.32) 
Net asset value, end of period    13.10    12.91    13.12 
Total Return (%) c    6.00    2.99    2.71d 
Ratios/Supplemental Data (%):             
Ratio of total expenses to average net assets    1.10    1.03e    .98e,f 
Ratio of net expenses to average net assets    1.10    1.03e    .96e,f 
Ratio of net investment income             
to average net assets    4.38    4.57    4.49f 
Portfolio Turnover Rate    68.06    48.31    48.30 
Net Assets, end of period ($ x 1,000)    306,634    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 prior 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.             

30

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

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

On May 24, 2007, the shareholders of Mellon Financial and The Bank of New York Company, Inc. approved the proposed merger of the two companies.The new company will be called The Bank of New York Mellon Corporation. As part of this transaction, Dreyfus would become a wholly-owned subsidiary of The Bank of New York Mellon Corporation.The transaction is subject to certain regulatory approvals, as well as other customary conditions to closing. Subject to such approvals and the satisfaction of the other conditions, Mellon Financial and The Bank of New York Company, Inc. expect the transaction to be completed in the third quarter of 2007.

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.The fund no longer offers Class B shares, except in connection with dividend reinvestment and permitted exchanges of Class B shares. Class C shares are subject to a

T h e F u n d 31

NOTES TO FINANCIAL STATEMENTS (continued)

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

The fund accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.

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,

32

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 Financial Accounting Standards Board (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 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 carry-

T h e F u n d 33

NOTES TO FINANCIAL STATEMENTS (continued)

overs, 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 FASB released FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain 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 portfolio’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 statements of the fund.

At April 30,2007,the components of accumulated earnings on a tax basis were as follows: undistributed tax exempt income $263,462, accumulated capital losses $61,253,295 and unrealized appreciation $28,531,368.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to April 30, 2007. 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, $16,442,235 of the carryover expires in fiscal 2008, $9,553,959 expires in fiscal 2009, $17,083,173

34

expires in fiscal 2010, $10,384,676 expires in fiscal 2011 and $7,789,252 expires in fiscal 2012.

The tax character of distributions paid to shareholders during the fiscal periods ended April 30, 2007 and April 30, 2006 was as follows: tax exempt income $25,762,687 and $28,650,962, respectively.

During the period ended April 30, 2007, as a result of permanent book to tax differences, primarily due to the tax treatment for amortization adjustments, the fund decreased accumulated undistributed investment income-net by $29,295 increased accumulated net realized gain (loss) on investments by $10,647 and increased paid-in capital by $18,648. Net assets were not affected by this reclassification.

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 April 30, 2007, the fund did not borrow under the Facility.

NOTE 3—Management Fee and Other Transactions With 
Affiliates: 

(a) Pursuant to a management agreement with the Manager, the management fee is computed at the annual rate of .55% of the value of the fund’s average daily net assets and is payable monthly.

During the period ended April 30, 2007, the Distributor retained $8,663 and $655 from commissions earned on sales of the fund’s Class A and Class Z shares, respectively, and $22,071 and $423 from contingent deferred sales charges on redemptions of the fund’s Class B and Class C shares, respectively.

T h e F u n d 35

NOTES TO FINANCIAL STATEMENTS(continued)

(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 April 30, 2007, Class B and Class C shares were charged $69,718 and $73,746, 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 April 30, 2007, Class A, Class B, Class C and Class Z shares were charged $639,665, $34,859, $24,582 and $632,076 respectively, pursuant to the Shareholder Services Plan.

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended April 30, 2007, the fund was charged $242,161 pursuant to the transfer agency agreement.

During the period ended April 30, 2007, the fund was charged $4,089 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 $264,455, Rule 12b-1 distribution plan fees $11,212, shareholder services plan fees $107,589, transfer agency per account fees $40,360 and chief compliance officer fees $3,407.

36

(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 April 30, 2007, amounted to $425,537,094 and $458,826,496, respectively.

The fund may purchase floating rate notes. A floating rate note is a Municipal Bond or other debt obligation (generally held pursuant to a custodial arrangement) having a relatively long maturity and bearing interest at a fixed rate substantially higher than prevailing short-term tax exempt rates, that has been coupled with the agreement of a third party, such as a bank, broker-dealer or other financial institution, pursuant to which such institution grants the security holders the option, at periodic intervals, to tender their securities to the institution and receive the face value thereof. As consideration for providing the option, the financial institution receives periodic fees equal to the difference between the obligation’s fixed coupon rate and the rate, as determined by a remarketing or similar agent at or near the commencement of such period, that would cause the securities, coupled with the tender option, to trade at par on the date of such determination.Thus, after payment of this fee, the security holder effectively holds a demand obligation that bears interest at the prevailing short-term tax exempt rate.

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

T h e F u n d 37

NOTES TO FINANCIAL STATEMENTS (continued)

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 and is subject to change.At April 30, 2007, there were no financial futures contracts outstanding.

At April 30, 2007, the cost of investments for federal income tax purposes was $544,761,306; accordingly, accumulated net unrealized appreciation on investments was $28,531,368, consisting of $31,112,927 gross unrealized appreciation and $2,581,559 gross unrealized depreciation.

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:

Ratio of Total Expenses    2006    2005    2004    2003 
Class A shares:                 
As previously reported    .91%    .93%    .93%    .94% 
As restated    1.09%    1.03%    1.00%    1.04% 
Class B shares:                 
As previously reported    1.43%    1.44%    1.44%    1.44% 
As restated    1.61%    1.54%    1.51%    1.54% 
Class C shares:                 
As previously reported    1.64%    1.66%    1.66%    1.67% 
As restated    1.82%    1.76%    1.73%    1.77% 
Class Z shares:                 
As previously reported    .85%    .88%         
As restated    1.03%    .98%         

38

Ratio of Net Expenses    2006    2005    2004    2003 
Class A shares:                 
As previously reported    .91%    .92%    .93%    .94% 
As restated    1.09%    1.02%    1.00%    1.04% 
Class B shares:                 
As previously reported    1.43%    1.44%    1.44%    1.44% 
As restated    1.61%    1.54%    1.51%    1.54% 
Class C shares:                 
As previously reported    1.64%    1.66%    1.66%    1.67% 
As restated    1.82%    1.76%    1.73%    1.77% 
Class Z shares:                 
As previously reported    .85%    .86%         
As restated    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 changes in net assets were also restated as follows:

    2006     
    As Previously    2006 
    Reported    As Restated 
Statement of Changes in Net Assets ($):     
Net realized gain (loss) on investments    2,666,391    2,226,941 
Net unrealized appreciation         
(depreciation) on investments    (12,743,303)    (12,303,853) 

T h e F u n d 39

REPORT OF INDEPENDENT REGISTERED 
PUBLIC ACCOUNTING FIRM 

Shareholders and Board of Trustees 
Dreyfus Premier Municipal Bond Fund 

We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Dreyfus Premier Municipal Bond Fund, as of April 30, 2007, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and financial highlights for each of the years indicated therein.These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting.Accordingly, we express no such opinion.An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned April 30, 2007 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Dreyfus Premier Municipal Bond Fund at April 30, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the indicated years, in conformity with U.S. generally accepted accounting principles.

New York, New York 
June 14, 2007 

40

IMPORTANT TAX INFORMATION (Unaudited)

In accordance with federal tax law, the fund hereby designates all the dividends paid from investment income-net during its fiscal year ended April 30, 2007 as “exempt-interest dividends” (not generally subject to regular federal income tax).

As required by federal tax law rules, shareholders will receive notification of their portion of the fund’s taxable ordinary dividends (if any) and capital gains distributions (if any) paid for the 2007 calendar year on Form 1099-DIV and their portion of the fund’s tax-exempt dividends paid for 2007 calendar year on Form 1099-INT, both which will be mailed by January 31, 2008.

T h e F u n d 41

PROXY RESULTS (Unaudited)

The fund held a special meeting of shareholders on November 30, 2006.The proposal considered at the meeting, and the results, are as follows:

        Shares 
    Votes For    Authority Withheld 
To elect additional Board Members:         
David W. Burke †    25,387,876    818,464 
Joseph S. DiMartino †    25,365,342    840,999 
Diane Dunst †    25,343,988    862,352 
Jay I. Meltzer †    25,361,990    844,350 
Daniel Rose †    25,332,440    873,900 
Warren B. Rudman †    25,358,916    847,424 
Sander Vanocur †    25,338,691    867,649 
 
† Each new Board member’s term commenced on January 1, 2007.     
Although Joseph S. DiMartino has served as a Board member of the fund since 1995, he previously had not stood 
for election by fund shareholders. In addition, Clifford L. Alexander, Jr., Peggy C. Davis, Ernest Kafka and Nathan 
Leventhal continue as Board members of the fund.     

42

BOARD MEMBERS INFORMATION (Unaudited)

Joseph S. DiMartino (63) 
Chairman of the Board (1995) 

Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• The Muscular Dystrophy Association, Director 
• Century Business Services, Inc., a provider of outsourcing functions for small and medium size 
companies, Director 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director 
• Sunair Services Corporation, a provider of certain outdoor-related services to homes and 
businesses, Director 

No. of Portfolios for which Board Member Serves: 172

———————

Clifford L. Alexander, Jr. (73) 
Board Member (1986) 

Principal Occupation During Past 5 Years: 
• President of Alexander & Associates, Inc., a management consulting firm ( January 1981-present) 
• Chairman of the Board of Moody’s Corporation (October 2000-October 2003) 
Other Board Memberships and Affiliations: 
• Mutual of America Life Insurance Company, Director 

No. of Portfolios for which Board Member Serves: 59

———————

David W. Burke (71) 
Board Member (2007) 

Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• John F. Kennedy Library Foundation, Director 

No. of Portfolios for which Board Member Serves: 94

———————

Peggy C. Davis (64) 
Board Member (1990) 

Principal Occupation During Past 5 Years: 
• Shad Professor of Law, New York University School of Law (1983-present) 
• Writer and teacher in the fields of evidence, constitutional theory, family law, social sciences 
and the law, legal process and professional methodology and training 

No. of Portfolios for which Board Member Serves: 72

T h e F u n d 43

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Diane Dunst (67) 
Board Member (2007) 

Principal Occupation During Past 5 Years: 
• President, Huntting House Antiques 

No. of Portfolios for which Board Member Serves: 29

———————

Ernest Kafka (74) 
Board Member (1986) 

Principal Occupation During Past 5 Years: 
• Physician engaged in private practice specializing in the psychoanalysis of adults and 
adolescents (1962-present) 
• Instructor,The New York Psychoanalytic Institute (1981-present) 
• Associate Clinical Professor of Psychiatry at Cornell Medical School (1987-2002) 

No. of Portfolios for which Board Member Serves: 29

———————

Nathan Leventhal (64) 
Board Member (1989) 

Principal Occupation During Past 5 Years: 
• Commissioner, NYC Planning Commission (March 2007-present) 
• Chairman of the Avery-Fisher Artist Program (November 1997-present) 
Other Board Memberships and Affiliations: 
• Movado Group, Inc., Director 
• Mayor’s Committee on Appointments, Chairman 

No. of Portfolios for which Board Member Serves: 29

———————

Jay I. Meltzer (78) 
Board Member (2007) 

Principal Occupation During Past 5 Years: 
• Physician, Internist and Specialist in Clinical Hypertension 
• Clinical Professor of Medicine at Columbia University & College of Physicians and Surgeons 
• Faculty Associate, Center for Bioethics, Columbia 

No. of Portfolios for which Board Member Serves: 29

44

Daniel Rose (77) 
Board Member (2007) 

Principal Occupation During Past 5 Years: 
• Chairman and Chief Executive Officer of Rose Associates, Inc., a New York based real estate 
development and management firm 
Other Board Memberships and Affiliations: 
• Baltic-American Enterprise Fund,Vice Chairman and Director 
• Harlem Educational Activities Fund, Inc., Chairman 
• Housing Committee of the Real Estate Board of New York, Inc., Director 

No. of Portfolios for which Board Member Serves: 38

———————

Warren B. Rudman (76) 
Board Member (2007) 

Principal Occupation During Past 5 Years: 
• Of Counsel to (from January 1993 to December 31, 2003, Partner in) the law firm Paul, 
Weiss, Rifkind,Wharton & Garrison LLP 
Other Board Memberships and Affiliations: 
• Collins & Aikman Corporation, Director 
• Boston Scientific, Director 

No. of Portfolios for which Board Member Serves: 38

———————

Sander Vanocur (79) 
Board Member (2007) 

Principal Occupation During Past 5 Years: 
• President, Old Owl Communications 

No. of Portfolios for which Board Member Serves: 38

———————

Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.

Saul B. Klaman, Emeritus Board Member

T h e F u n d 45

OFFICERS OF THE FUND (Unaudited)

J. DAVID OFFICER, President since 
December 2006. 

Chief Operating Officer,Vice Chairman and a Director of the Manager, and an officer of 88 investment companies (comprised of 172 portfolios) managed by the Manager. He is 58 years old and has been an employee of the Manager since April 1998.

MARK N. JACOBS, Vice President since 
March 2000. 

Executive Vice President, Secretary and General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 61 years old and has been an employee of the Manager since June 1977.

MICHAEL A. ROSENBERG, Vice President 
and Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel and Assistant Secretary of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President 
and Assistant Secretary since 
August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. She is 51 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 45 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President 
and Assistant Secretary since 
August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. She is 44 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since February 1991.

ROBERT R. MULLERY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 55 years old and has been an employee of the Manager since May 1986.

JEFF PRUSNOFSKY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since October 1990.

46

JAMES WINDELS, Treasurer since 
November 2001. 

Director – Mutual Fund Accounting of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 48 years old and has been an employee of the Manager since April 1985.

ROBERT ROBOL, Assistant Treasurer 
since August 2005. 

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since October 1988.

ROBERT SVAGNA, Assistant Treasurer 
since August 2005. 

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer 
since December 2005. 

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 89 investment companies (comprised of 188 portfolios) managed by the Manager. He is 38 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance 
Officer since October 2004. 

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (89 investment companies, comprised of 188 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon's Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 49 years old and has served in various capacities with the Manager since 1980, including manager of the firm's Fund Accounting Department from 1997 through October 2001.

WILLIAM GERMENIS, Anti-Money 
Laundering Compliance Officer since 
October 2002. 

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 85 investment companies (comprised of 184 portfolios) managed by the Manager. He is 36 years old and has been an employee of the Distributor since October 1998.

T h e F u n d 47

NOTES

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.

© 2007 Dreyfus Service Corporation

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3. Audit Committee Financial Expert.

The Registrant's Board has determined that Joseph S. DiMartino, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Mr. DiMartino is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $37,319 in 2006 and $37,319 in 2007.

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2006 and $0 in 2007.

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

Note: For the second paragraph in each of (b) through (d) of this Item 4, certain of such services were not pre-approved prior to May 6, 2003, when such services were required to be pre-approved. On and after May 6, 2003, 100% of all services provided by the Auditor were pre-approved as required. For comparative purposes, the fees shown assume that all such services were pre-approved, including services that were not pre-approved prior to the compliance date of the pre-approval requirement.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $3,382 in 2006 and $3,038 in 2007. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $620 in 2006 and $658 in 2007. These services consisted of a review of the Registrant’s anti-money laundering program.

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $718,507 in 2006 and $946,380 in 2007.

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates which were not pre-approved (not requiring pre-approval) is compatible with maintaining the Auditor's independence.

Item 5.    Audit Committee of Listed Registrants. 
    Not applicable. [CLOSED-END FUNDS ONLY] 
Item 6.    Schedule of Investments. 
    Not applicable. 
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable. [CLOSED-END FUNDS ONLY] 
Item 8.    Portfolio Managers of Closed-End Management Investment Companies. 
    Not applicable. [CLOSED-END FUNDS ONLY, beginning with reports for periods ended 
    on and after December 31, 2005] 
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) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a)(1)    Code of ethics referred to in Item 2. 
(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:    June 19, 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:    June 19, 2007 
 
By: 
    /s/ James Windels 
    James Windels 
    Treasurer
 
Date:    June 19, 2007 

EXHIBIT INDEX

(a)(1)    Code of ethics referred to in Item 2. 
 
(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)