Federated Hermes Global Allocation Fund (SBFIX) N-CSR Certified annual shareholder report (management investment company)

                                  United States
                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form N-CSR
   Certified Shareholder Report of Registered Management Investment Companies




                                      811-1

                      (Investment Company Act File Number)


                       Federated Stock and Bond Fund, Inc.
         _______________________________________________________________

               (Exact Name of Registrant as Specified in Charter)


                            Federated Investors Funds
                              5800 Corporate Drive
                       Pittsburgh, Pennsylvania 15237-7000


                                 (412) 288-1900
                         (Registrant's Telephone Number)


                           John W. McGonigle, Esquire
                            Federated Investors Tower
                               1001 Liberty Avenue
                       Pittsburgh, Pennsylvania 15222-3779
                     (Name and Address of Agent for Service)
                (Notices should be sent to the Agent for Service)






                        Date of Fiscal Year End: 10/31/03


               Date of Reporting Period: Six months ended 4/30/03




Item 1.     Reports to Stockholders

Federated Investors
World-Class Investment Manager

Federated Stock and Bond Fund, Inc.

SEMI-ANNUAL SHAREHOLDER REPORT

April 30, 2003

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

Financial Highlights -- Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended October 31,
	4/30/2003			2002			2001			2000			1999			1998
Net Asset Value, Beginning of Period	$15.61			$17.22			$18.78			$18.71			$19.14			$20.46
Income From Investment Operations:
Net investment income	0.18			0.39			0.48			0.55			0.55			0.65
Net realized and unrealized gain (loss) on investments, foreign currency transactions and futures contracts	0.42			(1.62	)		(1.04	)		0.48			0.45			1.37
TOTAL FROM INVESTMENT OPERATIONS	0.60			(1.23	)		(0.56	)		1.03			1.00			2.02
Less Distributions:
Distributions from net investment income	(0.17	)		(0.38	)		(0.53	)		(0.54	)		(0.53	)		(0.69	)
Distributions from net realized gain on investments, foreign currency transactions and futures contracts	--			--			(0.47	)		(0.42	)		(0.90	)		(2.65	)
TOTAL DISTRIBUTIONS	(0.17	)		(0.38	)		(1.00	)		(0.96	)		(1.43	)		(3.34	)
Net Asset Value, End of Period	$16.04			$15.61			$17.22			$18.78			$18.71			$19.14
Total Return1	3.86	%		(7.32	)%		(3.12	)%		5.79	%		5.35	%		11.09	%
Ratios to Average Net Assets:
Expenses	1.30	%2,3		1.26	%3		1.31	%		1.29	%		1.25	%		1.25	%
Net investment income	2.26	%2		2.32	%		2.64	%		2.98	%		2.85	%		3.30	%
Expense waiver/reimbursement4	0.00	%2,5		0.00	%5		0.00	%5		0.00	%5		0.00	%5		0.07	%
Supplemental Data:
Net assets, end of period (000 omitted)	$197,753		$184,294			$175,854			$177,236			$209,985			$196,149
Portfolio turnover	49	%		54	%		28	%		26	%		46	%		53	%

1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

2 Computed on an annualized basis.

3 The expense ratio is calculated without the reduction for fees paid indirectly for directed brokerage arrangements.

4 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

5 Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Financial Highlights -- Class B Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended October 31,
	4/30/2003			2002			2001			2000			1999			1998
Net Asset Value, Beginning of Period	$15.58			$17.19			$18.75			$18.68			$19.10			$20.45
Income From Investment Operations:
Net investment income	0.12			0.26			0.35			0.41			0.42			0.50
Net realized and unrealized gain (loss) on investments, foreign currency transactions and futures contracts	0.42			(1.62	)		(1.05	)		0.49			0.45			1.37
TOTAL FROM INVESTMENT OPERATIONS	0.54			(1.36	)		(0.70	)		0.90			0.87			1.87
Less Distributions:
Distributions from net investment income	(0.11	)		(0.25	)		(0.39	)		(0.41	)		(0.39	)		(0.57	)
Distributions from net realized gain on investments, foreign currency transactions and futures contracts	--			--			(0.47	)		(0.42	)		(0.90	)		(2.65	)
TOTAL DISTRIBUTIONS	(0.11	)		(0.25	)		(0.86	)		(0.83	)		(1.29	)		(3.22	)
Net Asset Value, End of Period	$16.01			$15.58			$17.19			$18.75			$18.68			$19.10
Total Return1	3.48	%		(8.02	)%		(3.85	)%		5.02	%		4.63	%		10.26	%
Ratios to Average Net Assets:
Expenses	2.05	%2,3		2.01	%3		2.06	%		2.04	%		2.00	%		2.00	%
Net investment income	1.51	%2		1.57	%		1.89	%		2.26	%		2.10	%		2.55	%
Expense waiver/reimbursement4	0.00	%2,5		0.00	%5		0.00	%5		0.00	%5		0.00	%5		0.07	%
Supplemental Data:
Net assets, end of period (000 omitted)	$61,988		$59,165			$60,058			$48,898			$53,154			$26,487
Portfolio turnover	49	%		54	%		28	%		26	%		46	%		53	%

1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

2 Computed on an annualized basis.

3 The expense ratio is calculated without the reduction for fees paid indirectly for directed brokerage arrangements.

4 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

5 Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Financial Highlights -- Class C Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended October 31,
	4/30/2003			2002			2001			2000			1999			1998
Net Asset Value, Beginning of Period	$15.54			$17.15			$18.70			$18.63			$19.07			$20.42
Income From Investment Operations:
Net investment income	0.12			0.26			0.35			0.41			0.42			0.50
Net realized and unrealized gain (loss) on investments, foreign currency transactions and futures contracts	0.42			(1.62	)		(1.04	)		0.49			0.43			1.37
TOTAL FROM INVESTMENT OPERATIONS	0.54			(1.36	)		(0.69	)		0.90			0.85			1.87
Less Distributions:
Distributions from net investment income	(0.11	)		(0.25	)		(0.39	)		(0.41	)		(0.39	)		(0.57	)
Distributions from net realized gain on investments, foreign currency transactions and futures contracts	--			--			(0.47	)		(0.42	)		(0.90	)		(2.65	)
TOTAL DISTRIBUTIONS	(0.11	)		(0.25	)		(0.86	)		(0.83	)		(1.29	)		(3.22	)
Net Asset Value, End of Period	$15.97			$15.54			$17.15			$18.70			$18.63			$19.07
Total Return1	3.49	%		(8.03	)%		(3.81	)%		5.04	%		4.52	%		10.21	%
Ratios to Average Net Assets:
Expenses	2.05	%2,3		2.01	%3		2.06	%		2.04	%		2.00	%		2.00	%
Net investment income	1.51	%2		1.57	%		1.89	%		2.26	%		2.10	%		2.55	%
Expense waiver/reimbursement4	0.00	%2,5		0.00	%5		0.00	%5		0.00	%5		0.00	%5		0.07	%
Supplemental Data:
Net assets, end of period (000 omitted)	$23,686		$22,567			$24,032			$21,909			$20,385			$10,312
Portfolio turnover	49	%		54	%		28	%		26	%		46	%		53	%

1 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

2 Computed on an annualized basis.

3 The expense ratio is calculated without the reduction for fees paid indirectly for directed brokerage arrangements.

4 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

5 Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Financial Highlights -- Class K Shares

(For a Share Outstanding Throughout Each Period)

	Period Ended (unaudited) 4/30/2003	1
Net Asset Value, Beginning of Period	$15.61
Income From Investment Operations:
Net investment income	0.01
Net realized and unrealized gain on investments, foreign currency transactions and futures contracts	0.42
TOTAL FROM INVESTMENT OPERATIONS	0.43
Net Asset Value, End of Period	$16.04
Total Return2	2.75	%
Ratios to Average Net Assets:
Expenses	1.80	%3,4
Net investment income	1.76	%3
Expense waiver/reimbursement5	0.00	%3,6
Supplemental Data:
Net assets, end of period (000 omitted)	$0	7
Portfolio turnover	49	%8

1 Reflects operations for the period from April 8, 2003 (start of performance) to April 30, 2003.

2 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

3 Computed on an annualized basis.

4 The expense ratio is calculated without the reduction for fees paid indirectly for directed brokerage arrangements.

5 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

6 Represents less than 0.01%.

7 Represents less than $1,000.

8 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the six months ended April 30, 2003.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

April 30, 2003 (unaudited)

Shares				Value
			STOCKS--57.2%
			COMMON STOCKS--55.4%
			Consumer Discretionary--5.3%
	93,900	1	AOL Time Warner, Inc.	$	1,284,552
	24,400	1	Clear Channel Communications, Inc.		954,284
	40,500	1	Comcast Corp., Class A		1,292,355
	22,600		Gannett Co., Inc.		1,711,272
	28,800		Home Depot, Inc.		810,144
	28,000	2	Interpublic Group Cos., Inc.		319,200
	16,700		Johnson Controls, Inc.		1,373,408
	5,500	1	Kohl's Corp.		312,400
	19,700		Lowe's Cos., Inc.		864,633
	18,100	2	Nike, Inc., Class B		968,893
	15,500		Omnicom Group, Inc.		959,450
	55,900		Target Corp.		1,869,296
	40,200	1	Viacom, Inc., Class B		1,745,082
	25,900		Walt Disney Co.		483,294
			TOTAL		14,948,263
			Consumer Staples--6.8%
	23,000		Altria Group, Inc.		707,480
	17,300		Anheuser-Busch Cos., Inc.		862,924
	61,700		Coca-Cola Co.		2,492,680
	42,200	1	Costco Wholesale Corp.		1,461,386
	31,200		Gillette Co.		950,040
	107,100	1	Kroger Co.		1,531,530
	13,800		McCormick & Co., Inc.		342,102
	45,700		PepsiCo, Inc.		1,977,896
	26,500		Procter & Gamble Co.		2,381,025
	27,200		UST, Inc.		852,176
	26,600		Walgreen Co.		820,876
	67,400		Wal-Mart Stores, Inc.		3,795,968
	18,900		Wrigley (Wm.), Jr. Co.		1,071,819
			TOTAL		19,247,902
Shares				Value
			STOCKS--continued
			COMMON STOCKS--continued
			Energy--4.3%
	16,900		Anadarko Petroleum Corp.	$	750,360
	21,300		BP Amoco PLC, ADR		820,902
	36,800	2	Baker Hughes, Inc.		1,030,400
	32,800		ChevronTexaco Corp.		2,060,168
	14,900		ConocoPhillips		749,470
	100,500		Exxon Mobil Corp.		3,537,600
	41,600		Royal Dutch Petroleum Co., ADR		1,700,608
	40,700		Schlumberger Ltd.		1,706,551
			TOTAL		12,356,059
			Financials--8.4%
	27,400		American International Group, Inc.		1,587,830
	1,000	1	Arcadia Financial Ltd. - Warrants		10
	11,700		Bank One Corp.		421,785
	31,400		Bank of America Corp.		2,325,170
	64,100		Bank of New York Co., Inc.		1,695,445
	103,700		Citigroup, Inc.		4,070,225
	14,500		Federal Home Loan Mortgage Corp.		839,550
	17,700		Federal National Mortgage Association		1,281,303
	11,700		Fifth Third Bancorp		576,693
	18,500		FleetBoston Financial Corp.		490,620
	2,200		Goldman Sachs Group, Inc.		166,980
	33,300		Lehman Brothers Holdings, Inc.		2,096,901
	41,100		Lincoln National Corp.		1,313,556
	46,100		Marsh & McLennan Cos., Inc.		2,198,048
	12,900		Morgan Stanley		577,275
	3,500		SLM Holding Corp.		392,000
	12,600		Wachovia Corp.		481,446
	40,200		Washington Mutual, Inc.		1,587,900
	33,900		Wells Fargo & Co.		1,636,014
			TOTAL		23,738,751
Shares				Value
			STOCKS--continued
			COMMON STOCKS--continued
			Healthcare--9.9%
	30,000		Abbott Laboratories	$	1,218,900
	20,100	1	Amgen, Inc.		1,232,331
	13,900	1	Anthem, Inc.		954,096
	51,100		Baxter International, Inc.		1,175,300
	25,600	1	Biogen, Inc.		972,544
	39,300		Bristol-Myers Squibb Co.		1,003,722
	13,500		Cardinal Health, Inc.		746,280
	26,600		Guidant Corp.		1,037,134
	48,800		Johnson & Johnson		2,750,368
	35,900		Lilly (Eli) & Co.		2,291,138
	9,200		Medtronic, Inc.		439,208
	46,200		Merck & Co., Inc.		2,687,916
	53,250		Mylan Laboratories, Inc.		1,505,378
	186,600		Pfizer, Inc.		5,737,950
	87,400		Schering Plough Corp.		1,581,940
	28,000	1	St. Jude Medical, Inc.		1,468,880
	27,200		Wyeth		1,184,016
			TOTAL		27,987,101
			Industrials--6.2%
	18,400		3M Co.		2,319,136
	16,800	2	Caterpillar, Inc.		883,680
	22,700		Danaher Corp.		1,565,846
	18,400		Deere & Co.		810,152
	22,000		Eaton Corp.		1,805,540
	143,400		General Electric Co.		4,223,130
	31,100		Lockheed Martin Corp.		1,556,555
	50,700		Raytheon Co.		1,517,451
	36,700		Textron, Inc.		1,082,283
	27,800		Tyco International Ltd.		433,680
	66,100		Waste Management, Inc.		1,435,692
			TOTAL		17,633,145
Shares				Value
			STOCKS--continued
			COMMON STOCKS--continued
			Information Technology--7.8%
	136,200	1	Applied Materials, Inc.	$	1,988,520
	94,600	1	Cisco Systems, Inc.		1,422,784
	53,900	1	Dell Computer Corp.		1,558,249
	132,000	1	EMC Corp. Mass		1,199,880
	23,200		Electronic Data Systems Corp.		421,080
	45,000	1	FIserv, Inc.		1,324,800
	49,500		Hewlett-Packard Co.		806,850
	62,300		Intel Corp.		1,146,320
	27,800		International Business Machines Corp.		2,360,220
	17,600	1	Intuit, Inc.		682,528
	26,100	1	Lexmark International Group, Class A		1,944,711
	173,200		Microsoft Corp.		4,428,724
	51,700		Nokia Oyj, ADR, Class A		856,669
	109,000	1	Oracle Corp.		1,294,920
	34,000	1	SunGuard Data Systems, Inc.		731,000
			TOTAL		22,167,255
			Materials--1.8%
	64,700		Alcoa, Inc.		1,483,571
	57,000		International Paper Co.		2,037,750
	43,800		MeadWestvaco Corp.		1,033,242
	35,300		Monsanto Co.		614,220
			TOTAL		5,168,783
			Telecommunication Services--2.6%
	96	1	AT&T Canada, Inc., Class A		2,579
	5,177	1	AT&T Canada, Inc., Class B		139,727
	47,200		BellSouth Corp.		1,203,128
	92,600		SBC Communications, Inc.		2,163,136
	100,800		Sprint Corp. (FON Group)		1,160,208
	74,400		Verizon Communications		2,781,072
			TOTAL		7,449,850
Shares or Principal Amount				Value
			STOCKS--continued
			COMMON STOCKS--continued
			Utilities--2.3%
	54,800		Cinergy Corp.	$	1,870,872
	11,100		FPL Group, Inc.		675,657
	29,300		FirstEnergy Corp.		988,289
	67,800		NiSource, Inc.		1,281,420
	37,000		Sempra Energy		993,080
	22,900		Southern Co.		666,161
			TOTAL		6,475,479
			TOTAL COMMON STOCKS (IDENTIFIED COST $163,361,015)		157,172,588
			FUTURES CONTRACT COLLATERAL--1.8%
$	5,000,000	3	United States Treasury Bill, 6/26/2003 (identified cost $4,990,472)		4,991,300
			TOTAL STOCKS (IDENTIFIED COST $168,351,487)		162,163,888
			ASSET-BACKED SECURITIES--0.2%
	613,985	4	125 Home Loan Owner Trust 1998-1A B1, 9.26%, 02/15/2029		644,205
	92,013	4	SMFC Trust Asset-Backed Certificates, Series 1997-A 4, 4.425%, 1/28/2025		70,735
			TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $697,860)		714,940
			COLLATERALIZED MORTGAGE OBLIGATION--0.9%
	2,688,632		Federal National Mortgage Association, 1.820%, 9/25/2032 (IDENTIFIED COST $2,686,952)		2,696,429
			CORPORATE BONDS--13.4%
			Basic Ind. - Chemicals--0.1%
	400,000	4	Fertinitro Finance, Company Guarantee, 8.29%, 4/01/2020		155,000
			Basic Ind. - Metals & Mining--0.3%
	500,000		Great Central Mining, 8.875%, 4/01/2008		302,500
	500,000	4	Normandy Finance Ltd., Company Guarantee, 7.5%, 7/15/2005		532,445
			TOTAL		834,945
			Basic Ind. - Paper--0.0%
	150,000		Pope & Talbot, Inc., 8.375%, 6/1/2013		137,250
			Cap. Goods - Diversified Manufacturing--0.2%
	500,000		Kennametal, Inc., 7.2%, 6/15/2012		526,625
			Cap. Goods - Environmental--0.4%
	1,000,000		Waste Management, Inc., Deb., 8.75%, 5/01/2018		1,192,970
			Cap. Goods- Aerospace & Defense--0.6%
	500,000	2	Boeing Capital Corp., 6.5%, 2/15/2012		540,315
	50,000		Lockheed Martin Corp., Note, 8.2%, 12/01/2009		61,826
	500,000		Raytheon Co., Note, 6.3%, 3/15/2005		536,315
	500,000		Raytheon Co., Unsecd. Note, 5.375%, 4/01/2013		517,575
			TOTAL		1,656,031
Principal Amount				Value
			CORPORATE BONDS--continued
			Communications - Media & Cable--0.2%
$	250,000		Comcast Corp., Note, 6.875%, 6/15/2009	$	279,630
	250,000		Cox Communications Inc., Medium Term Note, 6.69%, 9/20/2004		263,692
			TOTAL		543,322
			Communications - Media Noncable--0.9%
	500,000		Clear Channel Communicate, 7.65%, 9/15/2010		588,135
	500,000		News America Holdings, Sr. Deb., 9.25%, 2/1/2013		643,150
	250,000		Reed Elsevier, Inc., 6.75%, 8/01/2011		287,115
	1,000,000		Univision Communications, Inc., 7.85%, 7/15/2011		1,166,260
			TOTAL		2,684,660
			Communications - Telecom Wirelines--0.7%
	200,000		CenturyTel, Inc., 8.375%, 10/15/2010		246,080
	250,000		Citizens Communications Co., Unsecd. Note, 9.25%, 5/15/2011		314,687
	1,100,000		Verizon Global Funding, Note, 7.25%, 12/01/2010		1,287,220
			TOTAL		1,847,987
			Consumer Cyclical - Automotive--0.3%
	250,000		Ford Motor Co., Unsecd. Note, 7.45%, 7/16/2031		224,665
	500,000		General Motors Corp., Note, 7.2%, 1/15/2011		507,810
			TOTAL		732,475
			Consumer Cyclical - Entertainment--0.7%
	750,000		AOL Time Warner, Inc., Note, 6.75%, 4/15/2011		816,390
	1,000,000		International Speedway Co, 7.875%, 10/15/2004		1,069,630
			TOTAL		1,886,020
			Consumer Cyclical - Retailers--0.6%
	500,000		CVS Corp., 5.625%, 3/15/2006		544,200
	1,250,000		Shopko Stores, Sr. Note, 9.25%, 3/15/2022		1,043,750
	200,000		Target Corp., Unsecd. Note, 7.5%, 8/15/2010		240,426
			TOTAL		1,828,376
			Consumer Non - Food/Beverage--0.1%
	300,000		Kellogg Co., 6.6%, 4/01/2011		343,257
			Consumer Products--0.3%
	700,000		Albecca, Inc., Company Guarantee, 10.75%, 8/15/2008		753,375
			Energy - Integrated--0.2%
	250,000		Conoco Funding Co., 7.25%, 10/15/2031		304,045
	250,000		Conoco, Inc., 5.45%, 10/15/2006		272,750
	35,000		Petro-Canada, Inc., Deb., 7%, 11/15/2028		37,072
			TOTAL		613,867
Principal Amount				Value
			CORPORATE BONDS--continued
			Energy - Oil Field Services--0.0%
$	50,000		Noble Drilling Corp., Sr. Note, 7.5%, 3/15/2019	$	56,461
			Finance - Automotive--0.3%
	250,000		Ford Motor Credit Corp., Note, 7.375%, 10/28/2009		255,082
	500,000		General Motors Acceptance, 7.5%, 7/15/2005		537,035
			TOTAL		792,117
			Financial Inst. - Banking--1.2%
	750,000		FirstBank Puerto Rico, Sub. Note, 7.625%, 12/15/2005		792,068
	60,000		HSBC USA, Inc., Sub. Note, 6.625%, 3/01/2009		67,998
	500,000		J.P. Morgan Chase & Co., 5.75%, 1/02/2013		533,145
	200,000		Northern Trust Corp., 4.6%, 2/01/2013		203,452
	491,084	4	Regional Diversified Funding, 9.25%, 3/15/2030		578,733
	1,100,000		US BANK NA, 6.3%, 2/04/2014		1,263,152
			TOTAL		3,438,548
			Financial Inst. - Brokerage--0.6%
	250,000		Goldman Sachs Group, Inc., 6.125%, 2/15/2033		256,162
	550,000		Goldman Sachs Group, Inc., 6.6%, 1/15/2012		620,620
	500,000		Lehman Brothers Holdings, 7.875%, 8/15/2010		600,770
	250,000		Morgan Stanley Group, In, 5.3%, 3/01/2013		258,543
			TOTAL		1,736,095
			Financial Inst. - Finance Noncaptive--0.1%
	30,000		Heller Financial, Inc., Note, 7.375%, 11/01/2009		35,511
	300,000		Household Finance Corp., Unsecd. Note, 5.75%, 1/30/2007		326,817
	55,000		Newcourt Credit Group, In, Company Guarantee, 6.875%, 2/16/2005		58,660
			TOTAL		420,988
			Financial Inst. - Insurance - Life--1.0%
	250,000		Delphi Financial Group, Note, 8.00%, 10/1/2003		254,282
	1,250,000		Delphi Funding, 9.31%, 3/25/2027		998,687
	750,000	4	Life Re Capital Trust I, Company Guarantee, 8.72%, 6/15/2027		832,403
	750,000	4	Union Central Life Ins Co, Note, 8.2%, 11/1/2026		789,900
			TOTAL		2,875,272
			Financial Inst. - Reits--0.5%
	675,000		EOP Operating LP, 7.375%, 11/15/2003		693,522
	45,000		Mack-Cali Realty Corp., Note, 7.25%, 3/15/2009		51,350
	500,000	4	Simon Property Group, In, 6.35%, 8/28/2012		539,460
			TOTAL		1,284,332
			Financial Intermediaries--0.2%
	500,000	4	Fidelity Investments, 4.75%, 3/01/2013		504,765
Principal Amount				Value
			CORPORATE BONDS--continued
			Financial Services--0.0%
$	45,000		Associates Corp. of North America, Sr. Note, 5.5%, 2/15/2004	$	46,505
			Food & Drug Retailers--0.5%
	500,000	2	Albertsons, Inc., 7.5%, 2/15/2011		580,815
	125,000		Meyer (Fred), Inc., Company Guarantee, 7.45%, 3/01/2008		143,676
	750,000		Safeway, Inc., Note, 7.25%, 9/15/2004		799,380
			TOTAL		1,523,871
			Food Products--0.1%
	250,000		General Mills, Inc., 6%, 2/15/2012		275,208
			Healthcare--0.1%
	250,000		HCA - The Healthcare Corp., 6.95%, 5/01/2012		268,675
			Insurance - Multi-line--0.3%
	400,000		AXA-UAP, Sub. Note, 8.6%, 12/15/2030		480,960
	250,000	4	Travelers Property Casualty, 5%, 3/15/2013		252,910
			TOTAL		733,870
			Metal & Mining--0.1%
	250,000		BHP Finance (USA), Inc., 4.8%, 4/15/2013		254,953
			Oil & Gas--0.7%
	250,000		Devon Financing Corp., 6.875%, 9/30/2011		288,315
	500,000		Devon Financing Corp., 7.875%, 9/30/2031		620,140
	1,000,000		Pemex Project Funding Master, Company Guarantee, 9.125%, 10/13/2010		1,202,500
			TOTAL		2,110,955
			State/Provincial--0.2%
	650,000		New South Wales, State of, Local Gov't. Guarantee, 6.5%, 5/01/2006		425,881
			Supranational--0.1%
	300,000		Corp Andina De Fomento, Bond, 7.375%, 1/18/2011		323,505
			Technology Services--0.3%
	250,000		Computer Sciences Corp., 5%, 2/15/2013		254,252
	500,000		International Business Machines Corp., 4.875%, 10/01/2006		538,245
			TOTAL		792,497
			Telecommunications & Cellular--0.1%
	50,000	2	Insight Midwest LP, Sr. Note, 9.75%, 10/01/2009		53,938
	260,000		Tritel PCS, Inc., Sr. Sub. Note, 10.375%, 1/15/2011		307,450
			TOTAL		361,388
			Transportation - Airlines--0.1%
	53,870		Northwest Airlines Pass, Pass Thru Cert., 7.575%, 3/01/2019		51,311
	255,000		Southwest Airlines Co., Deb., 7.375%, 3/1/2027		268,750
			TOTAL		320,061
Principal Amount				Value
			CORPORATE BONDS--continued
			Transportation - Railroads--0.1%
$	200,000		Canadian Pacific RR, 6.25%, 10/15/2011	$	223,768
			Utilities--0.2%
	100,000		CMS Energy Corp., 8.375%, 7/01/2003		99,500
	75,000		Calpine Corp., Note, 7.75%, 4/15/2009		54,375
	250,000		Duke Energy Corp., Note, 6.25%, 1/15/2012		274,820
	25,000	1	NRG Energy, Inc., Bond, 1.00%, 11/01/2003		9,375
			TOTAL		438,070
			Utility - Electric--1.0%
	200,000		Arizona Public Service Co, 6.375%, 10/15/2011		219,200
	250,000		FirstEnergy Corp., 6.45%, 11/15/2011		270,975
	250,000		FirstEnergy Corp., 7.375%, 11/15/2031		275,343
	750,000		Homer City Funding, Sr. Secd. Note, 8.734%, 10/01/2026		751,875
	250,000	4	Israel Electric Corp. Ltd., 7.95%, 5/30/2011		266,590
	500,000		MidAmerican Energy Co., Unsecd. Note, 6.75%, 12/30/2031		568,725
	500,000		Oncor, Inc., Deb., 7%, 9/01/2022		553,075
			TOTAL		2,905,783
			TOTAL CORPORATE BONDS (IDENTIFIED COST $36,364,370)		37,849,728
			GOVERNMENT AGENCIES--1.9%
	1,000,000		Federal Home Loan Mortgage Corp., 3.250%, 11/15/2004		1,028,120
	2,000,000		Federal Home Loan Mortgage Corp., 4.050%, 6/21/2005		2,053,200
	1,500,000		Federal Home Loan Mortgage Corp., 5.750%, 4/15/2008		1,686,915
	500,000		Federal National Mortgage Association, 4.375%, 10/15/2006		533,115
			TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $4,900,080)		5,301,350
			GOVERNMENTS/AGENCIES--1.6%
	700,000		Austria, Government of, Bond, Series 98 1, 5%, 1/15/2008		841,011
	550,000		Canada, Government of, Series WU42, 5%, 9/01/2004		391,677
	750,000		Germany, Government of, Bond, 3.75%, 1/04/2009		850,735
	700,000		Germany, Government of, Bond, 5.25%, 1/04/2011		851,389
	700,000		Germany, Government of, Bond, Series 139, 4%, 2/16/2007		808,107
	500,000		Quebec, Province of, 5.75%, 2/15/2009		559,000
	250,000		Quebec, Province of, Deb., 7.5%, 9/15/2029		323,965
			TOTAL GOVERNMENTS/AGENCIES (IDENTIFIED COST $3,683,341)		4,625,884
Principal Amount				Value
			MORTGAGE BACKED SECURITIES--3.7%
$	999,901		Federal Home Loan Mortgage Corp. Pool C01435, 6.000%, 30 Year, 12/1/2032	$	1,040,837
	80,691		Federal Home Loan Mortgage Corp. Pool C25621, 6.500%, 5/1/2029		84,448
	21,385		Federal Home Loan Mortgage Corp. Pool E77591, 6.500%, 7/1/2014		22,708
	21,961		Federal National Mortgage Association Pool 303168, 9.500%, 30 Year, 2/1/2025		24,281
	18,772		Federal National Mortgage Association Pool 323159, 7.500%, 4/1/2028		20,103
	8,884		Federal National Mortgage Association Pool 323970, 7.000%, 15 Year, 10/1/2014		9,506
	34,286		Federal National Mortgage Association Pool 443215, 6.000%, 10/1/2028		35,808
	50,269		Federal National Mortgage Association Pool 511365, 7.000%, 8/1/2029		53,190
	4,838		Federal National Mortgage Association Pool 514184, 7.500%, 9/1/2029		5,169
	4,331,130		Federal National Mortgage Association Pool 657348, 5.000%, 15 Year, 9/1/2017		4,467,821
	20,645		Government National Mortgage Association Pool 352214, 7.000%, 4/15/2023		22,058
	9,312		Government National Mortgage Association Pool 462739, 7.500%, 5/15/2028		9,972
	9,162		Government National Mortgage Association Pool 464835, 6.500%, 9/15/2028		9,669
	783,701		Government National Mortgage Association Pool 548300, 5.000%, 30 Year, 12/15/2032		790,558
	338,108		Government National Mortgage Association Pool 548302, 5.000%, 30 Year, 1/15/2033		341,067
	1,870,361		Government National Mortgage Association Pool 553004, 5.000%, 30 Year, 1/15/2033		1,901,335
	1,489,869		Government National Mortgage Association Pool 589575, 5.500%, 30 Year, 10/15/2032		1,537,828
	17,331		Government National Mortgage Association Pool 780339, 8.000%, 30 Year, 12/15/2023		19,010
			TOTAL MORTGAGE BACKED SECURITIES (IDENTIFIED COST $10,229,461)		10,395,368
			U.S. TREASURY--1.7%
	750,000		United States Treasury Bond, 6.875%, 8/15/2025		955,665
	750,000		United States Treasury Bond, 8.125%, 5/15/2021		1,060,665
	790,000	2	United States Treasury Bond, 8.750%, 5/15/2017		1,148,091
	730,000	2	United States Treasury Note, 3.250%, 8/15/2007		749,732
	700,000		United States Treasury Note, 7.875%, 11/15/2004		769,566
			TOTAL U.S. TREASURY (IDENTIFIED COST $4,330,225)		4,683,719
Shares				Value
			MUTUAL FUNDS--20.9%
			High Yield Bond--2.2%
	955,809		High Yield Bond Portfolio	$	6,241,435
			Mortgage Backed Securities--10.8%
	2,960,363		Federated Mortgage Core Portfolio		30,521,346
			Money Market Funds--7.9%
	16,078,898		Prime Value Obligations Fund, Class IS		16,078,898
	6,432,663		Prime Value Obligations Fund, Class IS (held as collateral for securities lending)		6,432,663
			TOTAL		22,511,561
			TOTAL MUTUAL FUNDS (IDENTIFIED COST $57,294,230)		59,274,342
			TOTAL INVESTMENTS--101.5% (IDENTIFIED COST $288,538,006) 5		287,705,648
			OTHER ASSETS AND LIABILITIES -- NET--(1.5)%		(4,277,566)
			TOTAL NET ASSETS--100%	$	283,428,082

1 Non-income producing security.

2 Certain shares and/or principal amounts are temporarily on loan to unaffiliated broker/dealers.

3 Treasury bill held as collateral for S&P 500 futures contracts.

4 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund's board of directors. At April 30, 2003, these securities amounted to $5,167,146 which represents 1.8% of total net assets.

5 The cost of investments for federal tax purposes amounts to $288,538,006.

Note: The categories of investments are shown as a percentage of total net assets at April 30, 2003.

The following acronym is used throughout this portfolio:

ADR - --American Depositary Receipt

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

April 30, 2003 (unaudited)

Assets:
Total investments in securities, at value including $6,203,372 of securities loaned (identified cost $288,538,006)			$	287,705,648
Cash denominated in foreign currency (cost of $190,876)				203,881
Income receivable				1,199,941
Receivable for investments sold				1,148,963
Receivable for shares sold				636,070
TOTAL ASSETS				290,894,503
Liabilities:
Payable for investments purchased	$	504,054
Payable for shares redeemed		457,741
Payable to bank		4,511
Payable on collateral due to broker		6,432,663
Accrued expenses		67,452
TOTAL LIABILITIES				7,466,421
Net assets for 17,681,551 shares outstanding			$	283,428,082
Net Assets Consist of:
Paid in capital			$	299,428,264
Net unrealized depreciation of investments, translation of assets and liabilities in foreign currency and futures contracts				(287,339	)
Accumulated net realized loss on investments, foreign currency transactions and futures contracts				(16,121,380	)
Undistributed net investment income				408,537
TOTAL NET ASSETS			$	283,428,082
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net asset value per share ($197,753,068 ÷ 12,326,603 shares outstanding)				$16.04
Offering price per share (100/94.50 of $16.04)1				$16.97
Redemption proceeds per share				$16.04
Class B Shares:
Net asset value per share ($61,988,457 ÷ 3,871,755 shares outstanding)				$16.01
Offering price per share				$16.01
Redemption proceeds per share (94.50/100 of $16.01)1				$15.13
Class C Shares:
Net asset value per share ($23,686,301 ÷ 1,483,177 shares outstanding)				$15.97
Offering price per share (100/99.00 of 15.97)1				$16.13
Redemption proceeds per share (99.00/100 of $15.97)1				$15.81
Class K Shares:
Net asset value per share ($256.01 ÷ 15.958 shares outstanding)				$16.04
Offering price per share				$16.04
Redemption proceeds per share				$16.04

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended April 30, 2003 (unaudited)

Investment Income:
Dividends (net of foreign taxes withheld of $10,425)								$	2,678,600
Interest (including income on securities loaned of $7,855)									2,125,063
TOTAL INCOME									4,803,663
Expenses:
Investment adviser fee				$	959,195
Administrative personnel and services fee					101,604
Custodian fees					10,743
Transfer and dividend disbursing agent fees and expenses -- Class A Shares					138,732
Transfer and dividend disbursing agent fees and expenses -- Class B Shares					41,880
Transfer and dividend disbursing agent fees and expenses -- Class C Shares					15,773
Transfer and dividend disbursing agent fees and expenses -- Class K Shares					0	1
Directors'/Trustees' fees					6,309
Auditing fees					8,007
Legal fees					2,521
Portfolio accounting fees					49,912
Distribution services fee--Class B Shares					223,441
Distribution services fee--Class C Shares					85,188
Distribution services fee--Class K Shares					0	1
Shareholder services fee--Class A Shares					234,902
Shareholder services fee--Class B Shares					74,481
Shareholder services fee--Class C Shares					28,396
Share registration costs					35,283
Printing and postage					37,478
Insurance premiums					765
Taxes					9,536
Miscellaneous					5,868
TOTAL EXPENSES					2,070,014
Waiver, Reimbursement and Expense Reduction:
Waiver of investment adviser fee	$	(2,074	)
Reimbursement of investment adviser fee		(1,343	)				��
Fees paid indirectly from directed broker arrangements		(2,063	)
TOTAL WAIVER, REIMBURSEMENT AND EXPENSE REDUCTION					(5,480	)
Net expenses									2,064,534
Net investment income									2,739,129
Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions and Futures Contracts:
Net realized loss on investments and foreign currency transactions									(2,592,821	)
Net realized loss on futures contracts									(15,159	)
Net change in unrealized depreciation of investments, translation of assets and liabilities in foreign currency and futures contracts									9,910,443
Net realized and unrealized gain on investments, foreign currency and futures contracts									7,302,463
Change in net assets resulting from operations								$	10,041,592

1 Represents less than $1.

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) 4/30/2003			Year Ended 10/31/2002
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	2,739,129		$	5,743,997
Net realized loss on investments, foreign currency transactions and futures contracts		(2,607,980	)		(9,286,800	)
Net change in unrealized appreciation/depreciation of investments, translation of assets and liabilities in foreign currency and futures contracts		9,910,443			(18,837,481	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		10,041,592			(22,380,284	)
Distributions to Shareholders:
Distributions from net investment income
Class A Shares		(2,025,794	)		(4,149,628	)
Class B Shares		(422,656	)		(953,497	)
Class C Shares		(161,434	)		(363,217	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(2,609,884	)		(5,466,342	)
Share Transactions:
Proceeds from sale of shares		44,543,226			102,779,882
Net asset value of shares issued to shareholders in payment of distributions declared		2,348,774			4,869,260
Cost of shares redeemed		(36,922,084	)		(73,719,239	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		9,969,916			33,929,903
Change in net assets		17,401,624			6,083,277
Net Assets:					��
Beginning of period		266,026,458			259,943,181
End of period (including undistributed net investment income of $408,537 and $279,292, respectively)	$	283,428,082		$	266,026,458

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

April 30, 2003 (unaudited)

ORGANIZATION

Federated Stock and Bond Fund, Inc. (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 offers four classes of shares: Class A Shares, Class B Shares, Class C Shares and Class K Shares. Effective April 8, 2003, the Fund added Class K Shares. The investment objective of the Fund is to provide relative safety of capital with the possibility of long-term growth of capital and income. Consideration is also given to current income.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP").

Investment Valuation

U.S. government securities, listed corporate bonds, other fixed income and asset-backed securities, and unlisted securities and private placement securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Listed equity securities are valued at the last sale price reported on a national securities exchange. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. Investments in other open-end regulated investment companies are valued at net asset value. Securities for which no quotations are readily available, or whose values have been affected by a significant event occurring after the close of their primary markets, are valued at fair value as determined in good faith using methods approved by the Board of Directors (the "Directors").

Repurchase Agreements

It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Directors. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. The Fund offers multiple classes of shares, which differ in their respective transfer and dividend disbursing agent, distribution and service fees. All shareholders bear the common expenses of the Fund based on average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization/Paydown Gains and Losses

All premiums and discounts are amortized/accreted. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income.

Federal Taxes

It is the Funds' policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code"), and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

When-Issued and Delayed Delivery Transactions

The Funds may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Foreign Currency Translation

The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies ("FC") are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Futures Contracts

The Fund purchases stock index futures contracts to manage cashflows, enhance yield, and to potentially reduce transaction costs. Upon entering into a stock index futures contract with a broker, the Fund is required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a "variation margin" account. Daily, the Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. For the six months ended April 30, 2003, the Fund had realized losses of $15,159 on futures contracts.

Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with changes in the value of the underlying securities.

At April 30, 2003, the Fund had outstanding futures contracts as set forth below:

Expiration Date	Contracts to Receive	Position	Unrealized Appreciation
June 2003	22 S&P 500 Index Futures	Long	$529,645

Securities Lending

The Fund participates in a securities lending program providing for the lending of corporate bonds, equity and government securities to qualified brokers. Collateral for securities loaned is invested in an affiliated money market fund. Collateral is maintained at a minimum level of 102% of the market value on investments loaned, plus interest, if applicable. Earnings on collateral are allocated between the custodian securities lending agent, as a fee for its services under the program, and the Fund, according to agreed-upon rates.

As of April 30, 2003, securities subject to this type of arrangement and related collateral were as follows:

Market Value of Securities Loaned	Market Value of Collateral
$6,203,372	$6,432,663

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Directors. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in good faith using methods approved by the Directors.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At April 30, 2003, par value shares ($0.001 per share) authorized were as follows:

Share Class Name	Number of Par Value Capital Stock Authorized
Class A Shares	750,000,000
Class B Shares	500,000,000
Class C Shares	500,000,000
Class K Shares	500,000,000
TOTAL	2,250,000,000

Transactions in capital stock were as follows:

	Six Months Ended 4/30/2003					Year Ended 10/31/2002
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	2,176,214		$	34,087,278		4,452,697		$	74,821,478
Shares issued to shareholders in payment of distributions declared	117,770			1,839,845		216,498			3,696,620
Shares redeemed	(1,773,184	)		(27,619,993	)	(3,073,577	)		(51,181,066	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	520,800		$	8,307,130		1,595,618		$	27,337,032
	Six Months Ended 4/30/2003					Year Ended 10/31/2002
Class B Shares:	Shares			Amount		Shares			Amount
Shares sold	532,300		$	8,290,614		1,360,605		$	23,050,923
Shares issued to shareholders in payment of distributions declared	23,534			367,776		49,499			846,270
Shares redeemed	(481,872	)		(7,478,538	)	(1,105,827	)		(18,207,545	)
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	73,962		$	1,179,852		304,277		$	5,689,648
	Six Months Ended 4/30/2003					Year Ended 10/31/2002
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	139,217		$	2,165,084		290,604		$	4,907,481
Shares issued to shareholders in payment of distributions declared	9,059			141,153		19,124			326,370
Shares redeemed	(117,290	)		(1,823,552	)	(258,821	)		(4,330,628	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	30,986		$	482,685		50,907		$	903,223
	Period Ended 4/30/20031					Year Ended 10/31/2002
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	16		$	250
Shares redeemed	0	2		(1	)
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	16		$	249
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	625,764		$	9,969,916		1,950,802		$	33,929,903

1 Reflects operations for the period from April 8, 2003 (start of performance) to April 30, 2003.

2 Represents less than 1 share.

FEDERAL TAX INFORMATION

At April 30, 2003, the cost of investments for federal tax purposes was $288,538,006. The net unrealized depreciation of investments for federal tax purposes was $832,358. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $16,601,868 and net unrealized depreciation from investments for those securities having an excess of cost over value of $17,434,226.

At October 31, 2002, the Fund had a capital loss carryforward of $12,987,435 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:

Expiration Year	Expiration Amount
2009	$3,600,347
2010	$9,387,088

Other Taxes

As an open-end management investment company incorporated in the state of Maryland but domiciled in Pennsylvania, the Fund is subject to the Pennsylvania Franchise Tax. This franchise tax is assessed annually on the value of the Fund, as represented by average net assets for the tax year.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to (a) a maximum of 0.55% of the average daily net assets of the Fund, and (b) 4.50% of the gross income of the Fund, excluding capital gains or losses. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Pursuant to an Exemptive Order, the Fund may invest in Prime Value Obligations Fund which is managed by the Adviser. The Adviser has agreed to reimburse certain investment adviser fees as a result of these transactions.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Funds with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.150% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Class B, Class C and Class K Shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC:

Share Class Name	Percentage of Average Daily Net Assets of Class
Class B Shares	0.75%
Class C Shares	0.75%
Class K Shares	0.50%

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund's Class A Shares, Class B Shares and Class C Shares for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders.

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of each Fund's average daily net assets for the period, plus out-of-pocket expenses.

Expense Reduction

The Fund directs certain portfolio trades to a broker that in turn pays a portion of the Fund's operating expenses. For the six months ended April 30, 2003, the Fund's expenses were reduced by $2,063 under these arrangements.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations (and in-kind contributions), for the six months ended April 30, 2003, were as follows:

Purchases	$	121,999,573
Sales	$	99,383,445

Purchases and sales of long-term U.S. government securities for the six months ended April 30, 2003, were as follows:

Purchases	$	14,076,428
Sales	$	22,676,629

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the householding program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of householding. Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of householding at any time by calling 1-800-341-7400.

Federated Investors
World-Class Investment Manager


Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 313911109
Cusip 313911208
Cusip 313911307

Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.

8080105 (6/03)

Item 2.     Code of Ethics

            Not Applicable

Item 3.     Audit Committee Financial Expert

            Not Applicable

Item 4.     Principal Accountant Fees and Services

            Not Applicable

Items 5-6   [Reserved]

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

            Not Applicable

Item 8.     [Reserved]

Item 9.     Controls and Procedures

(a)  The   registrant's   President  and  Treasurer   have  concluded  that  the
     registrant's  disclosure  controls and procedures (as defined in rule 30a-2
     under the  Investment  Company Act of 1940 (the  "Act")) are  effective  in
     design  and  operation  and  are  sufficient  to  form  the  basis  of  the
     certifications  required  by Rule  30a-2  under  the  Act,  based  on their
     evaluation of these  disclosure  controls and procedures  within 90 days of
     the filing date of this report on Form N-CSR.

(b)  There were no significant changes in the registrant's internal controls, or
     the internal  controls of its service  providers,  or in other factors that
     could  significantly  affect these controls subsequent to the date of their
     evaluation,  including any  corrective  actions with regard to  significant
     deficiencies and material weaknesses.

Item 10.    Exhibits


                                   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.

Registrant  Federated Stock and Bond Fund, Inc.

By          /S/ Richard J. Thomas, Principal Financial Officer
Date        June 24, 2003

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. Christopher Donahue, Principal Executive Officer


Date        June 25, 2003


By          /S/ Richard J. Thomas, Principal Financial Officer


Date        June 24, 2003