-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IUGJWTWnADnqcD4BIV/GF5xKlwurIrUVbZ/sCr/Pz01BZ4kQlf4WHXZI7hA44qNw crbLokXaVesAj6eKg6Mfeg== 0000797923-97-000003.txt : 19970624 0000797923-97-000003.hdr.sgml : 19970624 ACCESSION NUMBER: 0000797923-97-000003 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970430 FILED AS OF DATE: 19970623 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DREYFUS PREMIER MUNICIPAL BOND FUND CENTRAL INDEX KEY: 0000797923 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: NY FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04764 FILM NUMBER: 97628117 BUSINESS ADDRESS: STREET 1: 144 GLENN CURTISS BLVD CITY: UNIONDALE STATE: NY ZIP: 11556 BUSINESS PHONE: 2129226805 MAIL ADDRESS: STREET 1: C/O DREYFUS CORP STREET 2: 200 PARK AVENUE, 8TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10166 FORMER COMPANY: FORMER CONFORMED NAME: PREMIER MUNICIPAL BOND FUND DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PREMIER TAX EXEMPT BOND FUND DATE OF NAME CHANGE: 19900916 FORMER COMPANY: FORMER CONFORMED NAME: GARDEN CITY TAX EXEMPT BOND FUND DATE OF NAME CHANGE: 19860910 N-30D 1 ANNUAL REPORT DREYFUS PREMIER MUNICIPAL BOND FUND LETTER TO SHAREHOLDERS Dear Shareholder: We are pleased to report the performance of the Dreyfus Premier Municipal Bond Fund for its fiscal year ended April 30, 1997 as shown in the following table:
TOTAL RETURN* DISTRIBUTION RATE** ________________ ______________________ Class A................................ 8.03% 5.57% Class B................................ 7.49% 5.32% Class C................................ 7.16% 5.09%
ECONOMIC REVIEW The U.S. economy just kept rolling ahead over the reporting period. Inflation remained subdued. The unemployment rate fell to its lowest level in 24 years, and a surge in tax revenues meant good news for the Administration's budget reduction program. Overall, the economic news has been stellar. The economy grew at a robust 5.6% annual rate during the first quarter, the best quarter in nine years. Aided by falling energy prices, and with no sign of shortages of raw materials, inflation remained in check. On the consumer level, the Consumer Price Index (CPI) remained below 3%. Excluding volatile food and energy prices, the CPI is slowing down so far this year, running at an annual rate of 2.5%. Inflation has been further restrained by the strong dollar which has moderated the price of imports and eased potential strains on domestic production capacity. The strong economy has put an increasing number of people to work. This tightening of the labor market has been a key factor in the implementation of monetary policy by the Federal Reserve Board's Open Market Committee (FOMC). The unemployment rate has been less than 5.5% since June 1996, the lowest sustained rate since the late 1980s. The rate fell to 4.9% in April of this year, its lowest level in 24 years. So far, neither strong economic growth nor wage increases have resulted in any price pressure at the consumer level. Through the first quarter (the latest available data), total employment costs (including wages and benefits) rose about the same as inflation. Renewed confidence, spurred by increasing job security and low inflation, has resulted in a surge in consumer spending. In the first quarter of the year, spending rose 6.4%, almost double the rate of the previous year's fourth quarter. The combined six-month performance was the largest increase in consumer spending over the past ten years. Retail sales have spurted in the early part of this year as well; first quarter results were sharply higher than in the last quarter of 1996. Not surprisingly, industrial production has been building momentum over the reporting period. The latest report on capacity utilization indicated the highest level in two years. So far, while the potential exists for production bottlenecks, prices for raw materials and worker wage demands have remained modest. Continued economic growth and the resulting rise in tax revenues have slashed further the Federal budget deficit. Administration officials estimate that this fiscal year's deficit will be about $75 billion, its lowest level in 23 years. Such good news on the deficit could make it easier to negotiate the Administration's bipartisan plan to balance the budget by 2002. While we seem to be enjoying the best of all possible economic worlds, the potential for future inflation is what concerns the Fed. Such concern resulted in the March decision by the FOMC, the policy-making arm of the Federal Reserve, to raise the Federal Funds rate one quarter of a percentage point to 5.50%. (The Federal Funds rate is the rate of interest banks charge each other for overnight loans.) The traditional assumption that strong economic growth and low unemployment will eventually result in rising inflation still drives the Fed's monetary policy initiatives. There is little reason to suspect that the Fed will soon change this policy. MARKET ENVIRONMENT Despite the assumption of a twenty-five basis point rate hike incorporated into most long-term securities in advance of the Federal Reserve meeting on March 25, prices of those securities actually fell an additional twenty-five basis points after the announcement, reaching a 7.17% yield on the thirty-year Treasury bellwether bond on April 17. Due to good inflation data, the market later recovered to the 6.85% level, and then retreated to a 7.00% yield, after the FOMC, at its meeting on May 20, decided to hold short-term rates steady. This action normally would have encouraged higher prices, but has instead generated some price erosion. The volatility in the general fixed income market belies the remarkable stability of the municipal bond market. Since February 15, the thirty-year Treasury bond has corrected by nearly forty basis points. By comparison, municipal bond futures are off only one and three-quarters points and cash securities (the bonds themselves) are flat to off one point. This substantial outperformance by municipals has led to municipal/Treasury yield ratios which are as low as have been seen in over two years. PORTFOLIO OVERVIEW Your portfolio is made up of securities that are indicative of the relative stability of municipals compared to their taxable counterparts. Many new issue purchases and existing holdings are slightly shorter than the traditional maturity range to enable the Fund to maintain a competitive yield while reducing potential volatility should interest rates change. Over the reporting period the Fund was comprised of many securities with 6% or greater coupons for added stability and income, as well as some 5% to 5-1/4% coupon securities for potential price performance. These barbell strategy-oriented securities provide balance and liquidity, and are in especially high demand by retail and institutional investors. This strategy continues to be utilized due to its success over the past year. While there are many strategies at work in the Fund, one of the central themes continues to be emphasizing income. Since August, the Bond Buyer Revenue Bond Index has varied only 15 basis points above or below 5.95%. This narrow range indicator and the expectation of its continuation provide little impetus to make changes to that theme. However, we continue to evaluate the potentially changing financial landscape and stand ready to adjust our positions accordingly. Enclosed please find a copy of the recent portfolio holdings for your review. Very truly yours, [Richard J. Moynihan signature logo] Richard J. Moynihan Director, Municipal Portfolio Management The Dreyfus Corporation May 16, 1997 New York, NY * 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 contingent deferred sales charge imposed on redemptions in the case of Class B and Class C shares. ** Distribution rate per share is based upon dividends per share paid from net investment income during the period, divided by the maximum offering price at the end of the period in the case of Class A shares, or the net asset value per share in the case of Class B and Class C shares, adjusted for capital gain distributions. Some income may be subject to the Federal Alternative Minimum Tax (AMT) for certain shareholders. DREYFUS PREMIER MUNICIPAL BOND FUND APRIL 30, 1997 [Exhibit A] COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS PREMIER MUNICIPAL BOND FUND CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX $21,905 Lehman Brothers Municipal Bond Index* Dollars $21,190 Dreyfus Premier Municipal Bond Fund (Class A Shares) *Source: Lehman Brothers [Exhibit A]
AVERAGE ANNUAL TOTAL RETURNS CLASS A SHARES CLASS B SHARES __________________________________________________________________ __________________________________________________________ % Return Reflecting % Return Applicable Contingent Reflecting % Return Deferred Sales % Return Without Maximum Initial Assuming No Charge Upon PERIOD ENDED 4/30/97 Sales Charge Sales Charge (4.5%) PERIOD ENDED 4/30/97 Redemption Redemption* __________ ________________ __________________ _______________ ____________ _________________ 1 Year 8.03% 3.20% 1 Year 7.49% 3.49% 5 Year 7.22 6.23 From Inception (1/15/93) 5.88 5.49 10 Year 8.29 7.80
CLASS C SHARES __________________________________________________________________ % Return Reflecting Applicable Contingent % Return Deferred Sales Assuming Charge Upon PERIOD ENDED 4/30/97 No Redemption Redemption** _________ _______________ ____________________ 1 Year 7.16% 6.16% From Inception (7/13/95) 4.64 4.64 Past performance is not predictive of future performance. The above graph compares a $10,000 investment made in Class A shares of Dreyfus Premier Municipal Bond Fund on 4/30/87 to a $10,000 investment made in the Lehman Brothers Municipal Bond Index on that date. All dividends and capital gain distributions are reinvested. Performance for Class B and Class C shares will vary from the performance of Class A 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. Unlike the Fund, the Lehman Brothers Municipal Bond Index 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 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. * The maximum contingent deferred sales charge for Class B shares is 4% and is reduced to 0% after six years. **The maximum contingent deferred sales charge for Class C shares is 1% for shares redeemed within one year of the date of purchase.
DREYFUS PREMIER MUNICIPAL BOND FUND STATEMENT OF INVESTMENTS APRIL 30, 1997 Principal Long-Term Municipal Investments_100.0% Amount Value __________ __________ ALABAMA-.4% Mobile Industrial Development Board, SWDR, Refunding (Mobile Energy Services Co. Project) 6.95%, 1/1/2020.................... $ 2,500,000 $ 2,645,175 ARIZONA-.9% Maricopa County Pollution Control Corporation, PCR, Refunding (Public Service Co._New Mexico Project) 6.30%, 12/1/2026................ 5,000,000 4,945,400 CALIFORNIA-2.9% Foothill/Eastern Transportation Corridor Agency, Toll Road Revenue: 6%, 1/1/2034............................................................ 5,000,000 4,880,100 5%, 1/1/2035............................................................ 8,000,000 6,641,040 Sacramento Cogeneration Authority, Cogeneration Project Revenue (Procter & Gamble Project) 6.50%, 7/1/2021.............................. 4,200,000 4,323,858 COLORADO-9.9% Arapahoe County Capital Improvement Trust Fund, Highway Revenue (E-470 Project): Zero Coupon, 8/31/2005.................................................. 2,530,000 1,554,634 Zero Coupon, 8/31/2007.................................................. 4,000,000 2,186,800 7%, 8/31/2026........................................................... 11,000,000 11,777,040 Dawson Ridge, Metropolitan District Number 1, Refunding: Zero Coupon, 10/1/2017 (a).............................................. 9,930,000 2,544,860 Zero Coupon, 10/1/2022.................................................. 47,535,000 8,664,204 Denver City and County, Airport Revenue: 7.25%, 11/15/2023....................................................... 10,000,000 10,757,600 7.50%, 11/15/2023....................................................... 11,775,000 12,995,596 7%, 11/15/2025.......................................................... 4,225,000 4,413,646 CONNECTICUT-.6% Connecticut Development Authority, First Mortgage Gross Revenue (Elim Park Baptist Home, Inc. Project) 9%, 12/1/2020.................... 3,000,000 3,217,140 DELAWARE-.7% Delaware Housing Authority, MFMR 7%, 5/1/2025............................... 3,725,000 3,852,097 FLORIDA-2.9% Florida Ports Financing Commission, Revenue (Transportation Trust Fund) 5.375%, 6/1/2027 (Insured; MBIA)............ 2,500,000 2,337,700 Palm Beach County, Solid Waste IDR: (Okeelanta Power LP Project) 6.85%, 2/15/2021 (b)....................... 6,750,000 5,037,728 (Osceola Power LP) 6.95%, 1/1/2022 (b).................................. 7,500,000 5,566,875 Santa Rosa Bay Bridge Authority, Revenue 6.25%, 7/1/2028.................... 3,000,000 2,977,290 GEORGIA-.7% Georgia Municipal Electric Authority, Power Revenue, Refunding 5.50%, 1/1/2020 (Insured; FGIC)......................................... 4,250,000 4,171,375 ILLINOIS-9.3% Carol Stream, First Mortgage Revenue, Refunding (Windsor Park Manor Project) 6.50%, 12/1/2007........................... 2,000,000 1,979,700 DREYFUS PREMIER MUNICIPAL BOND FUND STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE __________ __________ ILLINOIS (CONTINUED) Chicago O'Hare International Airport, Special Facility Revenue (American Airlines, Inc. Project) 7.875%, 11/1/2025..................... $ 6,000,000 $ 6,461,640 Illinois Development Finance Authority, Revenue (Community Rehabilitation Providers Facility): 8.75%, 3/1/2010 (Prerefunded 3/1/1999) (c)............................ 5,458,000 5,954,351 8.75%, 3/1/2010....................................................... 1,092,000 1,170,493 8.50%, 9/1/2010....................................................... 4,535,000 4,817,213 8.25%, 8/1/2012....................................................... 4,080,000 4,298,076 Illinois Health Facilities Authority, Revenue (Beverly Farm Foundation) 9.125%, 12/15/2015 (Prerefunded 12/15/2000) (c)......................... 2,000,000 2,332,960 Robbins, RRR (Robbins Resource Recovery Partners) 8.375%, 10/15/2016........ 23,500,000 24,468,170 INDIANA-8.2% East Chicago, PCR, Refunding: (Inland Steel Co., Project Number 10) 6.80%, 6/1/2013................... 7,000,000 7,073,430 (Inland Steel Co., Project Number 11) 7.125%, 6/1/2007.................. 3,000,000 3,103,470 Indiana Development Finance Authority: Environmental Improvement Revenue, Refunding (USX Corp. Project): 6.15%, 7/15/2022...................................................... 4,000,000 4,005,840 6.25%, 7/15/2030...................................................... 2,500,000 2,516,225 PCR, Refunding (Inland Steel Co., Project Number 12) 6.85%, 12/1/2012... 4,000,000 4,063,960 Indianapolis Airport Authority, Special Facilities Revenue: (Federal Express Corp. Project) 7.10%, 1/15/2017........................ 7,500,000 8,083,725 (United Airlines, Inc. Project) 6.50%, 11/15/2031....................... 16,250,000 16,519,425 KENTUCKY-1.1% Perry County, SWDR (TJ International Project): 7%, 6/1/2024............................................................ 3,500,000 3,627,855 6.55%, 4/15/2027 (d).................................................... 2,500,000 2,506,275 LOUISIANA-4.0% Louisiana Housing Finance Agency, MFHR, Refunding (LaBelle Projects) 9.75%, 10/1/2020..................................... 4,225,000 4,293,952 Louisiana Public Facilities Authority, Student Loan Revenue 7%, 9/1/2006............................................................ 3,000,000 3,151,110 Parish of West Feliciana, PCR: (Gulf States Utilities_II) 7.70%, 12/1/2014............................. 7,000,000 7,582,890 (Gulf States Utilities_III) 7.70%, 12/1/2014............................ 6,500,000 7,041,255 MARYLAND-.6% Maryland Energy Financing Administration, SWDR (Wheelabrator Water Projects) 6.45%, 12/1/2016.......................... 3,000,000 3,119,760 MASSACHUSETTS-1.3% Massachusetts Industrial Finance Agency, Water Treatment Revenue (American Hingham) 6.95%, 12/1/2035..................................... 2,640,000 2,740,742 DREYFUS PREMIER MUNICIPAL BOND FUND STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE __________ __________ MASSACHUSETTS (CONTINUED) Massachusetts Water Resource Authority 5%, 12/1/2016 (Insured; MBIA)........ $ 5,000,000 $ 4,587,200 MICHIGAN-1.2% Wayne Charter County, Special Airport Facilities Revenue, Refunding (Northwest Airlines, Inc.) 6.75%, 12/1/2015............................. 5,000,000 5,154,050 Wayne County Building Authority 8%, 3/1/2017 (Prerefunded 3/1/2002) (c)..... 1,500,000 1,719,210 NEVADA-2.5% Clark County, IDR (Southwest Gas Corp.) 7.50%, 9/1/2032..................... 13,000,000 13,991,900 NEW JERSEY-7.6% Camden County Pollution Control Financing Authority, Solid Waste RRR 7.50%, 12/1/2010........................................................ 2,000,000 2,040,160 New Jersey Economic Development Authority, First Mortgage Gross Revenue (The Evergreens) 9.25%, 10/1/2022....................................... 15,000,000 16,816,050 New Jersey Sports and Exposition Authority, Revenue, Refunding (Monmouth Park) 8%, 1/1/2025............................................ 4,000,000 4,403,520 New Jersey Transportation Trust Fund Authority, Refunding (Transportation System) 5%, 6/15/2015 (Insured; MBIA)................... 10,000,000 9,316,300 Union County Utilities Authority, Solid Waste Revenue 7.20%, 6/15/2014...... 9,500,000 9,741,965 NEW MEXICO-1.5% Farmington, PCR: Refunding (Public Service Co._San Juan Project) 6.375%, 4/1/2022........ 5,000,000 4,976,800 (Tucson Electric Power Company of San Juan) 6.95%, 10/1/2020............ 3,000,000 3,058,290 NEW YORK-10.4% New York City: 8%, 6/1/2000............................................................ 2,190,000 2,401,488 7.50%, 2/1/2001......................................................... 5,000,000 5,394,850 7.10%, 2/1/2009......................................................... 5,000,000 5,339,300 7%, 2/1/2020............................................................ 10,000,000 10,581,900 6.625%, 2/15/2025....................................................... 7,000,000 7,248,850 New York State Energy Research and Development Authority, Electric Facilities Revenue (Long Island Lighting Co.): 7.15%, 9/1/2019....................................................... 3,650,000 3,869,511 7.15%, 6/1/2020....................................................... 4,000,000 4,240,560 7.15%, 12/1/2020...................................................... 5,000,000 5,300,700 7.15%, 2/1/2022....................................................... 7,500,000 7,951,050 New York State Housing Finance Agency, Service Contract Obligation Revenue 7.30%, 3/15/2021 (Prerefunded 9/15/2001) (c)............................ 5,000,000 5,578,350 NORTH CAROLINA-2.6% North Carolina Eastern Municipal Power Agency, Power System Revenue, Refunding: 7%, 1/1/2013............................................................ 3,500,000 3,836,910 6%, 1/1/2014............................................................ 6,750,000 6,613,650 DREYFUS PREMIER MUNICIPAL BOND FUND STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE __________ __________ NORTH CAROLINA (CONTINUED) North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue, Refunding 5.375%, 1/1/2020 (Insured; AMBAC)............................. $ 4,000,000 $ 3,808,520 OKLAHOMA-1.2% Holdenville Industrial Authority, Correctional Facility Revenue: 6.60%, 7/1/2010......................................................... 2,045,000 2,081,135 6.70%, 7/1/2015......................................................... 4,625,000 4,724,715 PENNSYLVANIA-6.4% Beaver County Industrial Development Authority, PCR, Refunding 7.75%, 7/15/2025 6,000,000 6,543,420 Blair County Hospital Authority, Revenue (Altoona Hospital) 7.118%, 7/1/2013 (Insured; AMBAC) (e)................................... 5,000,000 5,505,900 Delaware County Industrial Development Authority, Revenue, Refunding (Resource Recovery Facility) 6.20%, 7/1/2019............................ 5,000,000 5,028,250 Lancaster County Hospital Authority, Revenue (Health Center_United Church Homes Project) 9.125%, 10/1/2014 (Prerefunded 10/1/1999) (c)............ 1,465,000 1,639,613 Lehigh County General Purpose Authority, Revenue (Wiley House): 8.75%, 11/1/2014........................................................ 2,000,000 2,079,260 9.50%, 11/1/2016........................................................ 3,000,000 3,224,220 Montgomery County Higher Education and Health Authority, First Mortgage Revenue (AHF/Montgomery, Inc. Project) 10.50%, 9/1/2020......................... 3,475,000 3,753,070 Pennsylvania Intergovernmental Cooperative Authority, Special Tax Revenue (Philadelphia Funding Program) 6.80%, 6/15/2022 (Prerefunded 6/15/2002) (c) 2,000,000 2,176,380 Philadelphia, Water and Sewer Revenue 7.35%, 9/1/2004....................... 4,940,000 5,565,355 RHODE ISLAND-.6% Providence, Special Obligation Tax Increment 6.65%, 6/1/2016................ 3,000,000 3,074,220 TEXAS-12.1% Alliance Airport Authority, Special Facilities Revenue: (American Airlines, Inc. Project) 7%, 12/1/2011......................... 10,700,000 11,843,188 (Federal Express Corp. Project) 6.375%, 4/1/2021........................ 5,000,000 5,044,650 Dallas-Fort Worth International Airport Facility, Improvement Revenue: (American Airlines, Inc.) 7.50%, 11/1/2025.............................. 8,000,000 8,508,800 (Delta Airlines, Inc.) 7.125%, 11/1/2026................................ 4,200,000 4,378,668 Gulf Coast Waste Disposal Authority, Revenue (Champion International Corp.) 7.45%, 5/1/2026.......................... 7,000,000 7,517,790 Houston Airport System, Special Facilities Improvement Revenue (Continental Airline Terminal): 6.125%, 7/15/2017 (Guaranteed; Continental Airlines Inc.)............. 2,875,000 2,788,233 6.125%, 7/15/2027 (Guaranteed; Continental Airlines Inc.)............. 6,800,000 6,479,176 Lower Colorado River Authority, PCR (Samsung Austin Semiconductor) 6.375%, 4/1/2027......................... 5,000,000 5,044,550 DREYFUS PREMIER MUNICIPAL BOND FUND STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 PRINCIPAL LONG-TERM MUNICIPAL INVESTMENTS (CONTINUED) AMOUNT VALUE _______________ _______________ TEXAS (CONTINUED) Rio Grande City Consolidated Independent School District, Public Facilities Corp. LR 6.75%, 7/15/2010........................................................ $ 6,000,000 $ 6,162,480 Texas Public Property Finance Corp., Revenue (Mental Health and Retardation Center) 8.20%, 10/1/2012 (Prerefunded 10/1/2002) (c)............................ 8,305,000 9,544,023 UTAH-3.3% Carbon County, SWDR, Refunding: (East Carbon Development Corp.) 9%, 7/1/2012............................ 4,000,000 4,201,760 (Laidlaw Inc./ECDC Project) 7.50%, 2/1/2010............................. 3,300,000 3,631,188 (Sunnyside Cogeneration) 9.25%, 7/1/2018 (f)............................ 15,000,000 10,513,050 VIRGINIA-1.0% Upper Occoquan Sewer Authority, Regional Sewer Revenue 5.15%, 7/1/2020 (Insured; MBIA)......................................... 6,000,000 5,559,840 WEST VIRGINIA-1.3% Upshur County, SWDR (TJ International Project) 7%, 7/15/2025................ 7,000,000 7,277,900 U.S. RELATED-4.8% Puerto Rico Commonwealth: Public Improvement 6.50%, 7/1/2014 (Insured; MBIA)...................... 5,000,000 5,571,200 Refunding: 6.25%, 7/1/2013 (Insured; MBIA)....................................... 3,000,000 3,267,330 6%, 7/1/2014.......................................................... 400,000 403,084 Puerto Rico Commonwealth Aqueduct and Sewer Authority, Revenue, Refunding 6.25%, 7/1/2013......................................................... 8,000,000 8,596,320 Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue 5%, 7/1/2036............................................................ 5,000,000 4,359,300 Puerto Rico Electric Power Authority, Power Revenue 6.25%, 7/1/2017......... 520,000 537,982 Puerto Rico Telephone Authority, Revenue, Refunding 6.48%, 1/25/2007 (Insured; MBIA) (e).................................... 3,950,000 3,964,813 _____________ TOTAL INVESTMENTS (cost $536,562,833)....................................... $554,964,622 ==============
DREYFUS PREMIER MUNICIPAL BOND FUND SUMMARY OF ABBREVIATIONS AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue FGIC Financial Guaranty Insurance Company MFMR Multi-Family Mortgage Revenue IDR Industrial Development Revenue PCR Pollution Control Revenue LR Lease Revenue RRR Resources Recovery Revenue MBIA Municipal Bond Investors Assurance SWDR Solid Waste Disposal Revenue Insurance Corporation
SUMMARY OF COMBINED RATINGS (UNAUDITED) FITCH (G) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE ____ ________ _________________ _____________________ AAA Aaa AAA 13.5% A A A 9.5 BBB Baa BBB 38.7 BB Ba BB 13.7 B B B .6 Not Rated (h) Not Rated (h) Not Rated (h) 24.0 ________ 100.0% =========
NOTES TO STATEMENT OF INVESTMENTS: (a) Wholly held by the custodian in a segregated account as collateral for a delayed-delivery security. (b) Subsequent to April 30, 1997, the owners/developers of the power project filed for protection under the Federal Bankruptcy Code. Although interest payments remain current as of June 5, 1997, this event has resulted in a decline in the market value of this security. (c) 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. (d) Purchased on a delayed-delivery basis. (e) Inverse floater security-the interest rate is subject to change periodically. (f) Non-income producing security; interest payment in default. (g) Fitch currently provides creditworthiness information for a limited number of investments. (h) 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.
DREYFUS PREMIER MUNICIPAL BOND FUND STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997 COST VALUE ______________ ______________ ASSETS: Investments in securities_See Statement of Investments $536,562,833 $554,964,622 Cash....................................... 5,161,309 Interest receivable........................ 10,488,120 Receivable for shares of Beneficial Interest subscribed 565,965 Prepaid expenses........................... 41,413 ______________ 571,221,429 ______________ LIABILITIES: Due to The Dreyfus Corporation and affiliates 261,362 Due to Distributor......................... 160,611 Payable for investment securities purchased 2,513,191 Payable for shares of Beneficial Interest redeemed 373,527 Accrued expenses........................... 50,944 ______________ 3,359,635 ______________ NET ASSETS.................................................................. $567,861,794 =============== REPRESENTED BY: Paid-in capital............................ $551,191,744 Accumulated net realized gain (loss) on investments (1,731,739) Accumulated net unrealized appreciation (depreciation) ......on investments_Note 4 18,401,789 ______________ NET ASSETS.................................................................. $567,861,794 ===============
NET ASSET VALUE PER SHARE ____________________________________ CLASS A CLASS B CLASS C ____________ ____________ ____________ Net Assets............................................... $457,326,987 $109,485,407 $1,049,400 Shares Outstanding.......................................... 32,415,496 7,758,931 74,297 NET ASSET VALUE PER SHARE................................... $14.11 $14.11 $14.12 ====== ======= ======== SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND STATEMENT OF OPERATIONS YEAR ENDED APRIL 30, 1997 INVESTMENT INCOME INCOME Interest Income............................ $39,068,835 EXPENSES: Management fee-Note 3(a).................. $ 3,180,718 Shareholder servicing costs-Note 3(c)...... 1,801,936 Distribution fees-Note 3(b)................ 549,961 Registration fees.......................... 89,776 Professional fees.......................... 75,408 Custodian fees............................. 57,304 Trustees' fees and expenses-Note 3(d)...... 38,109 Prospectus and shareholders' reports....... 27,092 Loan commitment fees-Note 2................ 3,255 Miscellaneous.............................. 31,507 _____________ TOTAL EXPENSES....................... 5,855,066 _______________ INVESTMENT INCOME-NET...................................................... 33,213,769 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4: Net realized gain (loss) on investments.... $ 3,461,461 Net unrealized appreciation (depreciation) on investments 7,755,927 _____________ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 11,217,388 _______________ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $44,431,157 =============== SEE NOTES TO FINANCIAL STATEMENTS. DREYFUS PREMIER MUNICIPAL BOND FUND STATEMENT OF CHANGES IN NET ASSETS YEAR ENDED YEAR ENDED APRIL 30, 1997 APRIL 30, 1996 _________________ __________________ OPERATIONS: Investment income-net.................................................. $ 33,213,769 $ 35,452,066 Net realized gain (loss) on investments................................. 3,461,461 13,702,073 Net unrealized appreciation (depreciation) on investments............... 7,755,927 (13,168,792) _________________ ___________________ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS... 44,431,157 35,985,347 _________________ __________________ DIVIDENDS TO SHAREHOLDERS FROM: Investment income-net: Class A shares........................................................ (27,382,313) (29,748,887) Class B shares........................................................ (5,784,609) (5,700,103) Class C shares........................................................ (46,847) (3,076) Net realized gain on investments: Class A shares........................................................ (246,714) ____ Class B shares........................................................ (57,569) ____ Class C shares........................................................ (447) ____ _________________ __________________ TOTAL DIVIDENDS................................................... (33,518,499) (35,452,066) _________________ __________________ BENEFICIAL INTEREST TRANSACTIONS: Net proceeds from shares sold: Class A shares........................................................ 97,168,956 40,674,840 Class B shares....................................................... 13,717,368 19,195,766 Class C shares..................................................... 1,639,929 359,668 Dividends reinvested: Class A shares........................................................ 15,604,972 17,177,404 Class B shares........................................................ 3,291,903 3,289,792 Class C shares........................................................ 30,755 2,003 Cost of shares redeemed: Class A shares........................................................ (138,425,542) (80,027,504) Class B shares........................................................ (16,411,365) (14,906,844) Class C shares........................................................ (983,046) (10,150) _________________ __________________ INCREASE (DECREASE) IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS (24,366,070) (14,245,025) _________________ __________________ TOTAL INCREASE (DECREASE) IN NET ASSETS......................... (13,453,412) (13,711,744) NET ASSETS: Beginning of Period................................................ 581,315,206 595,026,950 _________________ ___________________ End of Period................................................... $ 567,861,794 $ 581,315,206 ================ ================ SEE NOTES TO FINANCIAL STATEMENTS. DREYFUS PREMIER MUNICIPAL BOND FUND STATEMENT OF CHANGES IN NET ASSETS (CONTINUED) SHARES ___________________________________ YEAR ENDED YEAR ENDED APRIL 30, 1997 APRIL 30, 1996 _________________ _________________ CAPITAL SHARE TRANSACTIONS: CLASS A ________ Shares sold............................................................ 6,879,873 2,877,435 Shares issued for dividends reinvested................................. 1,104,332 1,202,513 Shares redeemed........................................................ (9,791,371) (5,613,780) _________________ _________________ NET INCREASE (DECREASE) IN SHARES OUTSTANDING (1,807,166) (1,533,832) ================= ================== CLASS B ________ Shares sold............................................................ 971,997 1,363,135 Shares issued for dividends reinvested................................. 232,925 230,256 Shares redeemed........................................................ (1,164,445) (1,045,329) _________________ _________________ NET INCREASE (DECREASE) IN SHARES OUTSTANDING 40,477 548,062 ================= ================== CLASS C* _________ Shares sold............................................................ 117,036 25,139 Shares issued for dividends reinvested................................. 2,175 141 Shares redeemed........................................................ (69,481) (713) _________________ _________________ NET INCREASE (DECREASE) IN SHARES OUTSTANDING 49,730 24,567 ================= ================== * From July 13, 1995 (commencement of initial offering) to April 30, 1996. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND FINANCIAL HIGHLIGHTS Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements. CLASS A SHARES _____________________________________________________________ YEAR ENDED APRIL 30, _____________________________________________________________ PER SHARE DATA: 1997 1996 1995 1994 1993 ______ ______ ______ ______ ______ Net asset value, beginning of period......... $13.85 $13.86 $13.81 $14.45 $13.75 ______ ______ ______ ______ ______ INVESTMENT OPERATIONS: Investment income-net....................... .82 .86 .84 .89 .92 Net realized and unrealized gain (loss) on investments............................. .27 (.01) .05 (.59) .91 ______ ______ ______ ______ ______ TOTAL FROM INVESTMENT OPERATIONS............. 1.09 .85 .89 .30 1.83 ______ ______ ______ ______ ______ DISTRIBUTIONS: Dividends from investment income-net......... (.82) (.86) (.84) (.89) (.92) Dividends from net realized gain on investments (.01) -- -- (.05) (.21) ______ ______ ______ ______ ______ TOTAL DISTRIBUTIONS.......................... (.83) (.86) (.84) (.94) (1.13) ______ ______ ______ ______ ______ Net asset value, end of period............... $14.11 $13.85 $13.86 $13.81 $14.45 ======== ======= ======= ====== ======= TOTAL INVESTMENT RETURN*......................... 8.03% 6.08% 6.72% 1.84% 13.76% RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets...... .91% .92% .92% .85% .74% Ratio of net investment income to average net assets.. 5.84% 5.98% 6.16% 6.01% 6.43% Decrease reflected in above expense ratios due to undertakings by the Manager......... -- -- -- .06% .20% Portfolio Turnover Rate...................... 28.17% 36.59% 38.60% 22.15% 30.99% Net Assets, end of period (000's Omitted).... $457,327 $474,044 $495,616 $546,036 $526,606 - ------------------------ * Exclusive of sales load. SEE NOTES TO FINANCIAL STATEMENTS. DREYFUS PREMIER MUNICIPAL BOND FUND FINANCIAL HIGHLIGHTS (CONTINUED) Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements. CLASS B SHARES _____________________________________________________________ YEAR ENDED APRIL 30, _____________________________________________________________ PER SHARE DATA: 1997 1996 1995 1994 1993(1) ______ ______ ______ ______ ______ Net asset value, beginning of period......... $13.85 $13.86 $13.81 $14.45 $14.02 ______ ______ ______ ______ ______ INVESTMENT OPERATIONS: Investment income-net....................... .75 .78 .77 .80 .24 Net realized and unrealized gain (loss) on investments............................. .27 (.01) .05 (.59) .43 ______ ______ ______ ______ ______ TOTAL FROM INVESTMENT OPERATIONS............. 1.02 .77 .82 .21 .67 ______ ______ ______ ______ ______ DISTRIBUTIONS: Dividends from investment income-net......... (.75) (.78) (.77) (.80) (.24) Dividends from net realized gain on investments (.01) -- -- (.05) -- ______ ______ ______ ______ ______ TOTAL DISTRIBUTIONS.......................... (.76) (.78) (.77) (.85) (.24) ______ ______ ______ ______ ______ Net asset value, end of period............... $14.11 $13.85 $13.86 $13.81 $14.45 ====== ======= ======= ======== ======== TOTAL INVESTMENT RETURN(2).................... 7.49% 5.53% 6.15% 1.26% 16.80%(3) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets...... 1.43% 1.43% 1.44% 1.40% 1.15%(3) Ratio of net investment income to average net assets 5.33% 5.46% 5.62% 5.33% 5.13%(3) Decrease reflected in above expense ratios due to undertakings by the Manager...... -- -- -- .05% .10%(3) Portfolio Turnover Rate...................... 28.17% 36.59% 38.60% 22.15% 30.99% Net Assets, end of period (000's Omitted)... $109,485 $106,931 $99,411 $95,643 $19,855 (1) From January 15, 1993 (commencement of initial offering) to April 30, 1993. (2) Exclusive of sales load. (3) Annualized. SEE NOTES TO FINANCIAL STATEMENTS.
DREYFUS PREMIER MUNICIPAL BOND FUND FINANCIAL HIGHLIGHTS (CONTINUED) Contained below is per share operating performance data for a share of Beneficial Interest outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from the Fund's financial statements. CLASS C SHARES ______________________________ YEAR ENDED APRIL 30, ______________________________ PER SHARE DATA: 1997 1996(1) ________ ________ Net asset value, beginning of period.................................... $13.87 $14.28 ________ ________ INVESTMENT OPERATIONS: Investment income-net.................................................. .72 .60 Net realized and unrealized gain (loss) on investments........................................................ .26 (.41) ________ ________ TOTAL FROM INVESTMENT OPERATIONS........................................ .98 .19 ________ ________ DISTRIBUTIONS: Dividends from investment income-net.................................... (.72) (.60) Dividends from net realized gain on investments......................... (.01) __ ________ ________ TOTAL DISTRIBUTIONS..................................................... (.73) (.60) ________ ________ Net asset value, end of period.......................................... $14.12 $13.87 ======== ========= TOTAL INVESTMENT RETURN(2).................................................. 7.16% 1.56%(3) RATIOS/SUPPLEMENTAL DATA: Ratio of expenses to average net assets................................. 1.64% 1.77%(3) Ratio of net investment income to average net assets.................... 5.01% 4.84%(3) Portfolio Turnover Rate................................................. 28.17% 36.59% Net Assets, end of period (000's Omitted)............................... $1,049 $340 (1) From July 13, 1995 (commencement of initial offering) to April 30, 1996. (2) Exclusive of sales load. (3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS. DREYFUS PREMIER MUNICIPAL BOND FUND 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 ("Act") as a diversified open-end management investment company. The Fund's investment objective is to maximize current income exempt from Federal income tax to the extent consistent with the preservation of capital. The Dreyfus Corporation ("Manager") serves as the Fund's investment adviser. The Manager is a direct subsidiary of Mellon Bank, N.A. On January 8, 1997, the Fund's Trustees approved a change of the Fund's name, effective March 31, 1997, from Premier Municipal Bond Fund to Dreyfus Premier Municipal Bond Fund. Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the Fund's shares. The Fund is authorized to issue an unlimited number of $.001 par value shares in each of the following classes of shares: Class A, Class B and Class C. 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") on redemptions made within six years of purchase (five years for shareholders beneficially owning Class B shares on November 30, 1996) and Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of purchase. Other differences between the classes include the services offered to and the expenses borne by each class and certain voting rights. The Fund's financial statements are prepared in accordance with generally accepted accounting principles which may require the use of management estimates and assumptions. Actual results could differ from those estimates. (a) Portfolio valuation: Investments in securities (excluding options and financial futures on municipal and U.S. treasury securities) are valued each business day by an independent pricing service ("Service") approved by the Board of Trustees. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as determined by the Service based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Options and financial futures on municipal and U.S. treasury securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day. Investments not listed on an exchange or the national securities market, or securities for which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. (b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the identified cost basis. Interest income, adjusted for amortization of premiums and original issue discounts on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date. (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 are normally declared and paid annually, but the Fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code. To the extent that net realized capital gain can be offset by capital loss carryovers, it is the policy of the Fund not to distribute such gain. DREYFUS PREMIER MUNICIPAL BOND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) (d) Federal income taxes: It is the policy of the Fund to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Internal Revenue Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all Federal income and excise taxes. The Fund has an unused capital loss carryover of approximately $1,777,000 available for Federal income tax purposes to be applied against future net securities profits, if any, realized subsequent to April 30, 1997. If not applied, the carryover expires in fiscal 2003. NOTE 2-Bank Line of Credit: The Fund participates with other Dreyfus-managed funds in a $600 million redemption credit facility ("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 at rates based on prevailing market rates in effect at the time of borrowings. For the period ended April 30, 1997, the Fund did not borrow under the line of credit. NOTE 3-Management Fee and Other Transactions With Affiliates: (a) Pursuant to a management agreement with the Manager, the management fee is computed at the annual rate of .55 of 1% of the value of the Fund's average daily net assets and is payable monthly. Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, retained $4,270 during the period ended April 30, 1997 from commissions earned on sales of the Fund's shares. (b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the Act, the Fund pays the Distributor for distributing the Fund's Class B and Class C shares at an annual rate of .50 of 1% of the value of the average daily net assets of Class B shares and .75 of 1% of the value of the average daily net assets of Class C shares. During the period ended April 30, 1997, $542,946 was charged to the Fund for the Class B shares and $7,015 was charged to the Fund for the Class C shares. (c) Under the Shareholder Services Plan, the Fund pays the Distributor at an annual rate of .25 of 1% of the value of the average daily net assets of Class A, Class B and Class C shares 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, 1997, $1,171,970, $271,473 and $2,338 were charged to Class A, Class B and Class C shares, respectively, by the Distributor 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. Such compensation amounted to $262,310, during the period ended April 30, 1997. (d) Each trustee who is not an "affiliated person" as defined in the Act receives from the Fund an annual fee of $2,500 and an attendance fee of $250 per meeting. The Chairman of the Board receives an additional 25% of such compensation. DREYFUS PREMIER MUNICIPAL BOND FUND NOTES TO FINANCIAL STATEMENTS (CONTINUED) NOTE 4-Securities Transactions: The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended April 30, 1997, amounted to $159,078,762 and $178,345,435, respectively. At April 30, 1997, accumulated net unrealized appreciation on investments was $18,401,789, consisting of $29,240,490 gross unrealized appreciation and $10,838,701 gross unrealized depreciation. At April 30, 1997, the cost of investments for Federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments). DREYFUS PREMIER MUNICIPAL BOND FUND REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS Shareholders and Board of Trustees Dreyfus Premier Municipal Bond Fund We have audited the accompanying statement of assets and liabilities of Dreyfus Premier Municipal Bond Fund, including the statement of investments, as of April 30, 1997 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 generally accepted auditing standards. 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of April 30, 1997 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. 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, 1997, 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 generally accepted accounting principles. [Ernst & Young signature logo] New York, New York June 5, 1997 DREYFUS PREMIER MUNICIPAL BOND FUND 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, 1997 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 gain distributions (if any) paid for the 1997 calendar year on Form 1099-DIV which will be mailed by January 31, 1998. Dreyfus Premier Municipal Bond Fund 200 Park Avenue New York, NY 10166 Manager The Dreyfus Corporation 200 Park Avenue New York, NY 10166 Custodian The Bank of New York 90 Washington Street New York, NY 10286 Transfer Agent & Dividend Disbursing Agent Dreyfus Transfer, Inc. P.O. Box 9671 Providence, RI 02940 Printed in U.S.A. 022/612AR974 [lion2hres logo] Registration Mark Annual Report Dreyfus Premier Municipal Bond Fund April 30, 1997 EX-99.A 2 GRAPH IN PRESIDENT'S LTR OF ANNUAL REPORT COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN PREMIER MUNICIPAL BOND FUND CLASS A SHARES AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX EXHIBIT A: LEHMAN PREMIER PERIOD BROTHERS MUNICIPAL MUNICIPAL BOND FUND BOND INDEX * (CLASS A SHARES) 4/30/87 10,000 9,553 4/30/88 10,875 9,901 4/30/89 11,846 11,300 4/30/90 12,699 12,005 4/30/91 14,158 13,461 4/30/92 15,504 14,954 4/30/93 17,466 17,012 4/30/94 17,843 17,325 4/30/95 19,030 18,489 4/30/96 20,542 19,614 4/30/97 21,905 21,190 * Source: Lehman Brothers -----END PRIVACY-ENHANCED MESSAGE-----