Prudential Investment Portfolios 4 N-CSRS Certified semi-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

Investment Company Act file number:	811-04930
Exact name of registrant as specified in charter:	Dryden Municipal Bond Fund
Address of principal executive offices:	Gateway Center 3 100 Mulberry Street Newark, New Jersey 07102
Name and address of agent for service:	Deborah A. Docs Gateway Center 3 100 Mulberry Street Newark, New Jersey 07102
Registrant’s telephone number, including area code:	973-367-7521
Date of fiscal year end:	April 30, 2004
Date of reporting period:	October 31, 2003

Item 1 – Reports to Stockholders

[SHAREHOLDER REPORT TO BE INSERTED HERE IN THE EDGAR VERSION]

Dryden Municipal Bond Fund/

High Income Series & Insured Series

Formerly known as Prudential Municipal Bond Fund/High Income Series & Insured Series

OCTOBER 31, 2003 SEMIANNUAL REPORT

FUND TYPE

Municipal Bond

OBJECTIVE

High Income Series: Maximum amount of income that is eligible for exclusion from federal income taxes.

Insured Series: Maximum amount of income that is eligible for exclusion from federal income taxes, consistent with the preservation of capital.

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.

The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.

JennisonDryden is a service mark of The Prudential Insurance Company of America.

Dear Shareholder,

December 16, 2003

As you may know, the mutual fund industry recently has been the subject of much media attention. There has been press coverage of Prudential, and recently, administrative complaints were filed against Prudential Securities* and some of its former brokers and branch managers in Massachusetts. As president of your Fund, I’d like to provide you with an update on the issues as they pertain to JennisonDryden mutual funds.

State and federal authorities have requested information regarding trading practices from many mutual fund companies across the nation. Our fund family has been cooperating with inquiries it has received, and at the same time, Prudential Financial, Inc. has been conducting its own internal review. This review encompasses the policies, systems, and procedures of our fund family, Prudential Financial’s investment units and its proprietary distribution channels, including the former Prudential Securities. The review also includes mutual fund trading activity by investment professionals who manage our funds.

Market timing

Prudential Investments LLC, the Fund’s investment manager, has actively discouraged disruptive market timing, and for years, our mutual fund prospectuses have identified and addressed this issue. Prudential Investments has established operating policies and procedures that are designed to detect and deter frequent trading activities that would be disruptive to the management of our mutual fund portfolios, and has rejected numerous orders placed by market timers in the past.

* Prudential Investments LLC, the manager of JennisonDryden mutual funds, and Prudential Investment Management Services LLC, the distributor of the funds, are part of the Investment Management segment of Prudential Financial, Inc. and are separate legal entities from the entity formerly known as Prudential Securities Incorporated, a retail brokerage firm. In February 2003, Prudential Financial and Wachovia Corporation announced they were combining their retail brokerage forces. The transaction was completed in July 2003. Wachovia Corporation has a 62% interest in the new firm, which is now known as Wachovia Securities LLC, and Prudential Financial owns the remaining 38%.

Late trading

The Securities and Exchange Commission requires that orders to purchase or redeem mutual fund shares be received either by the fund or by an intermediary (such as a broker, financial adviser, or 401(k) record keeper) before the time at which the fund calculates its net asset value (normally 4:00 p.m., Eastern time) if they are to receive that day’s price. The policies of our mutual funds do not make and have not made allowances for the practice known as “late trading”.

For more than 40 years we have offered investors quality investment products, financial guidance, and responsive customer service. Today we remain committed to this heritage and to the highest ethical principles in our investment practices.

Sincerely,

Judy A. Rice, President

Dryden Municipal Bond Fund/High Income Series & Insured Series

Dryden Municipal Bond Fund/High Income Series 1

Your Series’ Performance

Series Objective

The investment objective of the Dryden Municipal Bond Fund/High Income Series (the Series) is to seek the maximum amount of income that is eligible for exclusion from federal income taxes. There can be no assurance that the Series will achieve its investment objective.

Cumulative Total Returns1 as of 10/31/03
	Six Months		One Year		Five Years	Ten Years	Since Inception2
Class A	2.07	%	5.82	%	17.35%	61.09% (60.60)	128.07% (126.71)
Class B	1.95		5.56		15.87	55.91    (55.45)	179.90    (174.33)
Class C	1.82		5.30		14.44	N/A	53.99     (53.53)
Class Z	2.20		6.08		18.77	N/A	42.71     (42.43)
LB Muni Bond Index3	1.47		5.11		31.07	78.33	***
LB Non-Invstmt-Grd Muni Bond Index4	9.54		15.42		23.27	N/A5	****
Lipper HY Muni Debt Funds Avg.6	3.40		6.28		16.67	56.11	*****
Average Annual Total Returns1 as of 9/30/03
			One Year		Five Years	Ten Years	Since Inception2
Class A			1.06	%	2.49% (2.47)	4.58% (4.55)	5.96% (5.91)
Class B			–1.01		2.70    (2.68)	4.55    (4.52)	6.62    (6.49)
Class C			1.65		2.39    (2.37)	N/A	4.70    (4.66)
Class Z			4.45		3.37    (3.35)	N/A	5.16    (5.13)
LB Muni Bond Index3			3.89		5.67	6.03	***
LB Non-Invstmt-Grd Muni Bond Index4			9.95		3.91	N/A5	****
Lipper HY Muni Debt Funds Avg.6			4.00		2.96	4.62	*****

Distribution and Yields1 as of 10/31/03
	Total Distributions Paid for Six Months		30-Day SEC Yield		Taxable Equivalent Yield7 at Tax Rates of
					35%		38.60%
Class A	$	0.27	4.45	%	6.85	%	7.25	%
Class B	$	0.26	4.34		6.68		7.07
Class C	$	0.24	4.05		6.23		6.60
Class Z	$	0.28	4.84		7.45		7.88

Past performance is not indicative of future results. Principal value and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. ¹Source: Prudential Investments LLC, Lehman Brothers, and Lipper Inc. The cumulative total returns do not take into account applicable sales charges. The average annual total returns do take into account applicable sales charges. Without the distribution and service (12b-1) fee waiver of 0.05% and 0.25% for Class A and C shares respectively, the returns for these classes would have been lower. The Series charges a maximum front-end sales charge of 3% for Class A shares, and a 12b-1 fee of up to 0.30% annually. In some circumstances, Class A shares may not be subject to a front-end sales charge, but may be subject to a 1% contingent deferred sales charge (CDSC) for the first year. Class B shares are subject to a declining CDSC of 5%, 4%, 3%, 2%, 1%, and 1% for the first six years respectively after purchase, and a 12b-1 fee of 1% annually. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class C shares are subject to a front-end sales charge of 1%, a CDSC of 1% for shares redeemed within 18 months of purchase, and a 12b-1 fee of up to 0.50% annually. Class Z shares are not subject to a sales charge or 12b-1 fee. Without waiver of fees and/or expense subsidization, the Series’ returns would have been lower, as indicated in parentheses. The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on fund distributions or following the redemption of fund shares. ²Inception dates: Class A, 1/22/90; Class B, 9/17/87; Class C, 8/1/94; and Class Z, 9/16/96. ³The Lehman Brothers (LB) Municipal (Muni) Bond Index is an unmanaged index of over 39,000 long-term investment-grade municipal bonds. It gives a broad look at how long-term investment-grade municipal bonds have performed. ⁴The Lehman Brothers (LB) Non-Investment-Grade Municipal (Muni) Bond Index is an unmanaged index of non-rated or Ba1 below-rated municipal bonds. It gives a broad look at how non-investment-grade municipal bonds have performed. The bonds in this index must have an outstanding par value of at least $3 million and be issued as part of a transaction of at least $20 million. The bonds must also have a dated date after December 31, 1990, and must be at least one year from their maturity date. ⁵The inception date of the LB

2 Visit our website at www.jennisondryden.com

Non-Investment-Grade Muni Bond Index is October 1995. ⁶The Lipper High Yield Muni Debt Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper High Yield Muni Debt Funds category for the periods noted. Funds in the Lipper Average invest at least 50% of their assets in lower-rated municipal debt issues. ⁷Some investors may be subject to the federal alternative minimum tax and/or state and local taxes. Taxable equivalent yields reflect federal taxes only. Investors cannot invest directly in an index. The returns for the Lehman Brothers Indexes and the Lipper Average would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes. ***LB Muni Bond Index Since Inception cumulative total returns as of 10/31/03 are 160.24% for Class A, 230.25% for Class B, 81.08% for Class C, and 55.34% for  Class Z. LB Muni Bond Index Since Inception average annual total returns as of 9/30/03 are 7.29% for Class A, 7.79% for Class B, 6.75% for Class C, and 6.57% for Class Z. ****LB Non-Investment-Grade Muni Bond Index Since Inception cumulative total return as of 10/31/03 is 48.85% for Class Z. LB Non-Investment-Grade Muni Bond Index Since Inception average annual total return as of 9/30/03 is 5.60% for Class Z. *****Lipper Average Since Inception cumulative total returns as of 10/31/03 are 126.16% for Class A, 183.10% for Class B, 57.65% for Class C, and 37.55% for Class Z. Lipper Average Since Inception average annual total returns as of 9/30/03 are 6.10% for Class A, 6.67% for Class B, 5.01% for Class C, and 4.56% for Class Z.

Five Largest Issuers expressed as a percentage of total investments as of 10/31/03
Delaware Cnty. Ind. Dev. Auth. Rev.	3.7	%
Memphis Ctr. City Rev., Fin. Corp.	3.5
Golden St. Securitization Corp. Tobacco Settlement Rev.	2.5
City of Cedar Rapids Rev.	2.1
New Jersey St. Econ. Dev. Auth. Rev.	1.7

Issuers are subject to change.

Portfolio Composition expressed as a percentage of net assets as of 10/31/03
Healthcare	21.3	%
Corporate-Backed IDB & PCR	16.6
Pre-Refunded	13.6
Special Tax/Assessment District	9.5
General Obligation	7.2
Housing	6.8
Other	6.4
Tobacco	4.9
Water & Sewer	4.2
Transportation	3.9
Power	2.6
Education	2.0
Solid Waste/Resource Recovery	1.6
Lease-Backed Certificate of Participation	1.3
Cash	–1.9

Portfolio composition is subject to change.

Credit Quality expressed as a percentage of net assets as of 10/31/03
Aaa	23.0	%
Aa	6.5
A	8.6
Baa	18.8
Ba	5.6
B	1.9
Caa	2.6
NR	34.9
Cash	–1.9

Source: Moody’s rating, defaulting to S&P when not rated.

Credit quality is subject to change.

Dryden Municipal Bond Fund/High Income Series 3

Your Series’ Performance

Series Objective

The investment objective of the Dryden Municipal Bond Fund/Insured Series (the Series) is to seek the maximum amount of income that is eligible for exclusion from federal income taxes, consistent with the preservation of capital. There can be no assurance that the Series will achieve its investment objective.

Cumulative Total Returns1 as of 10/31/03
	Six Months		One Year		Five Years		Ten Years	Since Inception2
Class A	0.42	%	4.70	%	26.32	%	66.41% (65.98)	139.74% (137.85)
Class B	0.29		4.35		24.73		61.06    (60.64)	186.32   (173.79)
Class C	0.17		4.09		23.20		N/A	62.28     (61.85)
Class Z	0.54		4.96		27.75		N/A	51.27     (51.14)
LB Muni Bond Index3	1.47		5.11		31.07		78.33	***
Lipper Insured Muni Debt Funds Avg.4	0.66		4.40		24.48		62.61	****
Average Annual Total Returns1 as of 9/30/03
			One Year		Five Years		Ten Years	Since Inception2
Class A			0.14	%	4.18	%	4.98% (4.95)	6.42% (6.36)
Class B			–1.97		4.38		4.96    (4.93)	6.83    (6.54)
Class C			0.71		4.06		N/A	5.40    (5.37)
Class Z			3.49		5.05		N/A	6.17    (6.15)
LB Muni Bond Index3			3.89		5.67		6.03	***
Lipper Insured Muni Debt Funds Avg.4			2.81		4.54		5.08	****
Distribution and Yields1 as of 10/31/03
			Total Distributions		30-Day		Taxable Equivalent Yield7 at Tax Rates of
			Paid for Six Months		SEC Yield		35%	38.60%
Class A			$0.23		2.70	%	4.15%	4.40%
Class B			$0.21		2.54		3.91	4.14
Class C			$0.20		2.27		3.49	3.70
Class Z			$0.24		3.03		4.66	4.93

Past performance is not indicative of future results. Principal value and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. ¹Source: Prudential Investments LLC, Lehman Brothers, and Lipper Inc. The cumulative total returns do not take into account applicable sales charges. The average annual total returns do take into account applicable sales charges. Without the distribution and service (12b-1) fee waiver of 0.05% and 0.25% for Class A and C shares respectively, the returns for these classes would have been lower. The Series charges a maximum front-end sales charge of 3% for Class A shares, and a 12b-1 fee of up to 0.30% annually. In some circumstances, Class A shares may not be subject to a front-end sales charge, but may be subject to a 1% contingent deferred sales charge (CDSC) for the first year. Class B shares are subject to a declining CDSC of 5%, 4%, 3%, 2%, 1%, and 1% for the first six years respectively after purchase, and a 12b-1 fee of 0.50% annually. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class C shares are subject to a front-end sales charge of 1%, a CDSC of 1% for shares redeemed within 18 months of purchase, and a 12b-1 fee of up to 1% annually. Class Z shares are not subject to a sales charge or 12b-1 fee. Without waiver of fees and/or expense subsidization, the Series’ returns would have been lower, as indicated in parentheses. The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on fund distributions or following the redemption of fund shares. ²Inception dates: Class A, 1/22/90; Class B, 9/17/87; Class C, 8/1/94; and Class Z, 9/16/96. ³The Lehman Brothers (LB) Municipal (Muni)

4 Visit our website at www.jennisondryden.com

Bond Index is an unmanaged index of over 39,000 long-term investment-grade municipal bonds. It gives a broad look at how long-term investment-grade municipal bonds have performed. ⁴The Lipper Insured Municipal (Muni) Debt Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper Insured Muni Debt Funds category for the periods noted. Funds in the Lipper Average invest primarily in municipal debt issues insured as to timely payment. ⁵Some investors may be subject to the federal alternative minimum tax and/or state and local taxes. Taxable equivalent yields reflect federal taxes only. Investors cannot invest directly in an index. The returns for the LB Muni Bond Index and the Lipper Average would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes. ***LB Muni Bond Index Since Inception cumulative total returns as of 10/31/03 are 160.24% for Class A, 230.25% for Class B, 81.08% for Class C, and 55.34% for Class Z. LB Muni Bond Index Since Inception average annual total returns as of 9/30/03 are 7.29% for Class A, 7.79% for Class B, 6.75% for Class C, and 6.57% for Class Z. ****Lipper Average Since Inception cumulative total returns as of 10/31/03 are 135.89% for Class A, 200.71% for Class B, 66.81% for Class C, and 44.67% for Class Z. Lipper Average Since Inception average annual total returns as of 9/30/03 are 6.52% for Class A, 7.15% for Class B, 5.81% for Class C, and 5.51% for Class Z.

Five Largest Issuers expressed as a percentage of net assets as of 10/31/03
Metro. Trans. Authority	5.0	%
Washington St. Public Power Supply	4.7
St. of New York	4.7
Hawaii Dept. Budget & Fin.	2.7
Jersey City Sewer Authority	2.4

Issuers are subject to change.

Portfolio Composition expressed as a percentage of net assets as of 10/31/03
Transportation	18.5	%
General Obligation	14.9
Water & Sewer	14.6
Healthcare	8.9
Corporate-Backed IDB & PCR	8.1
Pre-Refunded	7.2
Power	6.9
Housing	5.2
Special Tax/Assessment District	3.8
Lease-Backed Certificate of Participation	3.1
Education	2.8
Other Municipals	2.6
Tobacco	1.9
Other	1.6
Solid Waste/Resource Recovery	0.7
Cash	–0.8

Portfolio composition is subject to change.

Credit Quality expressed as a percentage of net assets as of 10/31/03
Aaa	88.1	%
Aa	6.1
A	6.6
Cash	–0.8

Source: Moody’s rating, defaulting to S&P when not rated.

Credit quality is subject to change.

Dryden Municipal Bond Fund/Insured Series 5

Portfolio of Investments

as of October 31, 2003 (Unaudited)

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
LONG-TERM INVESTMENTS 94.8%
Alabama    0.3%
Camden Ind. Dev. Brd. Facs. Rev., Rfdg. Weyerhaeuser,
Ser. A	BBB(b)	6.125%	12/01/24	$	1,000		$	1,047,040
Ser B, A.M.T.	BBB(b)	6.375	12/01/24		1,000			1,048,040
								2,095,080
Alaska    0.4%
Northern Tobacco Secur. Corp., Asset Bkd. Bonds	Baa2	6.50	6/01/31		3,500			3,094,280
Arizona    2.6%
Coconino Cnty. Poll. Ctrl. Corp. Tucson Elec. Pwr., Navajo, Ser. A, A.M.T., Rev.	Ba3	7.125	10/01/32		5,000			5,116,650
Ser. B	Ba3	7.00	10/01/32		1,700			1,729,410
Pima Cnty. Ind. Dev. Auth. Multi-Fam. Mtge. Rev., La Cholla Proj., A.M.T.	NR	8.50	7/01/20		8,880			9,017,107
Surprise Arizona Mun. Prpty. Corp. Excise Tax Rev., F.G.I.C.	Aaa	5.50	7/01/15		3,225			3,595,746
								19,458,913
California    10.4%
Abag Fin. Auth. Nonprofit Corps., C.O.P. Amer. Baptist Homes, Ser. A	BB+(b)	6.20	10/01/27		3,200			3,023,072
Capistrano Uni. Sch. Dist. Cmnty. Facs., Talega	NR	6.00	9/01/33		1,000	(g)		1,000,640
Central California Joint Pwr. Hlth. Fin. Auth., C.O.P., Cmnty. Hosps. of Central California	Baa2	6.00	2/01/30		2,550			2,601,204
Corona, C.O.P., Vista Hosp. Sys. Inc., Ser. C	NR	8.375	7/01/11		10,000	(c)		5,000,000
Foothill/Eastern Trans. Corridor Agcy. Toll Rd. Rev., C.A.B.S.	Baa3	Zero	1/15/28		11,700			8,387,145

See Notes to Financial Statements.

6 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Golden St. Securitization Corp. Tobacco Settlement Rev.,
Asset Bkd., Ser. B	Baa1	5.75%	6/01/23	$	3,940		$	4,102,052
Asset Bkd., Ser. B	Baa1	5.375	6/01/28		4,350			4,191,878
Asset Bkd., Ser. B	Baa1	5.50	6/01/43		9,250			8,779,730
Asset Bkd., Ser. B, A.M.B.A.C.	Aaa	5.00	6/01/38		1,500			1,475,670
Lincoln Impvt. Bond Act 1915, Pub. Fin. Auth., Twelve Bridges	NR	6.20	9/02/25		3,680			3,798,864
Los Angeles Wtr. & Pwr. Rev.,
Pwr. Sys., Ser. B, F.S.A.	Aaa	5.125	7/01/15		1,000			1,092,760
Pwr. Sys., Ser. B, F.S.A.	Aaa	5.125	7/01/16		1,000			1,084,400
Pwr. Sys., Ser. B, F.S.A.	Aaa	5.125	7/01/17		2,100			2,259,831
Pwr. Sys., Ser. B, F.S.A.	Aaa	5.125	7/01/18		1,555			1,661,844
Orange Cnty. Cmnty. Loc. Trans. Auth., Reg. Linked S.A.V.R.S., R.I.B.S.	Aa2	6.20	2/14/11		7,000			8,225,980
Perris California Cmnty. Facs.
Dist., Spec. Tax, No. 01-2,
Ser. A	NR	6.25	9/01/23		3,000			3,020,790
Rancho Cordova Cmnty. Facs. Dist.,
Spec. Tax No. 2003-1, Sunridge Anatolia	NR	6.00	9/01/33		1,000	(g)		987,590
Spec. Tax No. 2003-1, Sunridge Anatolia	NR	6.10	9/01/37		2,000	(g)		1,980,840
Roseville Joint Union H.S. Dist.,
Ser. B, F.G.I.C.	Aaa	Zero	8/01/11		1,440			1,074,571
Ser. B, F.G.I.C.	Aaa	Zero	8/01/14		2,220			1,387,544
San Joaquin Hills Trans. Corridor Agcy., C.A.B.S., Toll Rd. Rev., Ser. A, M.B.I.A.	Aaa	Zero	1/15/35		8,195			1,449,040
San Luis Obispo C.O.P., Vista Hosp. Sys. Inc.	NR	8.375	7/01/29		4,000	(c)		2,000,000
Saugus Uni. Sch. Dist. Cmnty. Facs.	NR	6.00	9/01/33		1,800			1,801,152
Vallejo, C.O.P., Touro Univ.	Ba3	7.375	6/01/29		3,500			3,539,060
Victor Valley Union H.S. Dist., G.O., M.B.I.A., E.T.M.	Aaa	Zero	9/01/12		3,605			2,577,827
								76,503,484

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 7

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Colorado    5.0%
Black Hawk Bus. Impvt. Dist.	NR	7.75%	12/01/19	$	5,285	(d)	$	6,764,959
Colorado Springs Hosp. Rev.	A3	6.375	12/15/30		2,500			2,655,000
Denver Urban Ren. Auth. Tax,
Inc., Rev.	Baa2	7.50	9/01/04		330			331,934
Inc., Rev.	Baa2	7.75	9/01/16		4,000			4,278,440
Lake Creek Affordable Hsg. Corp. Multi-Fam. Rev.,
Ser. A	NR	6.25	12/01/23		12,270			11,149,749
Ser. B	NR	7.00	12/01/23		980			897,317
Silver Dollar Metro. Dist.	NR	7.05	12/01/30		5,000			5,096,250
Superior Metro. Dist. No. 1, Wtr. & Swr. Rev.	NR	8.50	12/01/13		5,340	(d)		5,754,971
								36,928,620
Connecticut    0.7%
Connecticut St., 1060 R, G.O., R.I.T.E.S.	AAA(b)	8.55(f)	11/15/09		5,000			5,415,400
Florida    5.3%
Arbor Greene Cmnty. Dev. Dist., Spec. Assmt. Rev.	NR	6.50	5/01/07		650			653,562
Bayside Impvt. Cmnty. Dev. Dist., Ser. B	NR	6.375	5/01/18		1,370			1,386,317
Broward Cnty. Res. Recov. Rev., Rfdg. Wheelabrator, Ser. A	A3	5.50	12/01/08		4,000			4,480,120
Crossings at Fleming Island Cmnty. Dev. Dist.	AAA(b)	8.25	5/01/16		6,780	(d)		7,461,254
Escambia Cnty. Hlth. Fac. Rev., Hlthcare. Fac., A.M.B.A.C.	Aaa	5.95	7/01/20		500			528,705
Florida Hsg. Fin. Corp. Rev., Cypress Trace Apts., Ser. G,
A.M.T.	NR	6.60	7/01/38		3,056			2,815,798
Westchase Apts., Ser. B, A.M.T.	NR	6.61	7/01/38		3,895			3,572,572
Hillsborough Cnty. Ind. Dev. Auth. Hosp. Rev.,
Tampa Gen. Hosp. Proj., Ser. B	Baa1	5.25	10/01/28		2,000			1,922,040
Tampa Gen. Hosp. Proj., Ser. B	Baa1	5.25	10/01/34		2,000			1,902,640

See Notes to Financial Statements.

8 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
North Springs Impvt. Dist. Wtr. Mgmt.,
Ser. A	NR	8.20%	5/01/24	$	1,798	(d)	$	1,877,687
Ser. B	NR	8.30	5/01/24		1,580			1,629,328
Oakstead Cmnty. Dev. Dist., Cap. Impvt., Ser. B	NR	6.50	5/01/07		2,330			2,339,367
Orlando Util. Cmnty. Wtr. & Elec. Rev., Ser. D, E.T.M.	Aa1	6.75	10/01/17		2,000			2,463,180
Palm Beach Cnty. Hsg. Auth. Rev., Ser. A	NR	7.75	3/01/23		4,065			4,154,349
Stoneybrook West Cmnty. Dev. Dist. Spec. Assmt. Rev., Ser. B	NR	6.45	5/01/10		1,350			1,367,833
Vista Lakes Cmnty. Dev. Dist. Cap. Impvt. Rev., Ser. B	NR	6.35	5/01/05		525			526,407
								39,081,159
Georgia    0.4%
Atlanta Arpt. Facs. Rev., Rfdg. M.B.I.A., A.M.T., C.A.B.S.	Aaa	Zero	1/01/10		2,000			1,469,160
Henry Cnty. Wtr. & Swr. Auth. Rev., A.M.B.A.C.	Aaa	6.15	2/01/20		1,000			1,194,320
								2,663,480
Illinois    4.9%
Cary Illinois Spec. Tax,
Spec. Svcs. Area No. 1 Cambridge, Ser. A	NR	7.625	3/01/30		3,968			4,305,201
Spec. Svcs. Area No. 2, Foxford Hill	NR	7.50	3/01/30		4,950			5,325,210
Chicago Illinois Proj. & Rfdg., F.G.I.C.	Aaa	5.25	1/01/28		4,375			4,477,550
Gilberts Illinois Spec. Svcs. Area No. 9, Spec. Tax, Big Timber Proj.	NR	7.75	3/01/27		5,000			5,455,600
Illinois Edl. Facs. Auth. Student Hsg. Rev., Edl. Advnmt. Fdg. Univ. Ctr. Proj.	Baa2	6.25	5/01/30		2,000			2,024,260
Illinois Hlth. Facs. Auth. Rev.,
Holy Cross Hosp. Proj.	Ba3	6.75	3/01/24		1,000			723,600
Midwest Physician Grp. Ltd. Proj.	BBB-(b)	8.10	11/15/14		2,660	(d)		2,855,031
Proj.	BBB-(b)	8.125	11/15/19		3,285	(d)		3,584,494

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 9

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Kane & De Kalb Cntys. Sch. Dist., No. 301, C.A.B.S., A.M.B.A.C.	Aaa	Zero	12/01/11	$	3,360		$	2,469,465
Metro. Pier & Exposition Auth. Rev., Dedicated St. Tax., C.A.B.S., McCormick, Ser. A	Aaa	Zero	12/15/38		10,000			1,398,600
Robbins Illinois Res. Recov. Rev.,
Restruct. Proj., Ser. A, A.M.T.	NR	8.375%	10/15/16		5,031	(c)		7,044
Restruct. Proj., Ser. B, A.M.T.	NR	8.375	10/15/16		1,969	(c)		2,756
Round Lake Rev.	NR	6.70	3/01/33		1,000			1,031,940
Winnebago Cnty. Hsg. Auth., Park Tower Assoc., Sec. 8	NR	8.125	1/01/11		2,727			2,742,364
								36,403,115
Iowa    3.6%
City of Cedar Rapids Rev.,
First Mtge., Cottage Grove Place Proj.	AAA(b)	9.00	7/01/18		9,090	(d)		10,389,961
First Mtge., Cottage Grove Place Proj.	AAA(b)	9.00	7/01/25		4,435	(d)		5,084,506
Iowa St. Fin. Auth. Hlthcare., Facs. Rev., Mercy Hlth. Initiatives Proj.	NR	9.25	7/01/25		9,895			11,479,684
								26,954,151
Louisiana    1.7%
Calcasieu Parish Inc., Ind. Dev. Brd. Rev., Rfdg. Olin Corp. Proj.	Baa3	6.625	2/01/16		3,500			3,676,155
Hodge Util. Rev., Stone Container Corp., A.M.T.	NR	9.00	3/01/10		2,300			2,362,100
New Orleans Home Mtge. Auth. Rev., Sngl. Fam. Mtge., Ser. A, G.N.M.A., A.M.T.	Aaa	8.60	12/01/19		1,160			1,160,000
West Feliciana Parish Poll. Ctrl. Rev., Gulf St. Util.	Ba1	7.70	12/01/14		5,000			5,070,650
								12,268,905

See Notes to Financial Statements.

10 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Maine    0.5%
Maine Hlth. & Higher Edl. Facs. Auth. Rev.,
Piper Shores, Ser. A	NR	7.50%	1/01/19	$	1,000		$	1,019,060
Piper Shores, Ser. A	NR	7.55	1/01/29		3,000			3,037,770
								4,056,830
Maryland    1.8%
Anne Arundel Cnty. Spec. Oblig., Arundel Mills Proj.	NR	7.10	7/01/29		3,000			3,241,230
Maryland St. Hlth. & Higher Edl. Facs. Auth. Rev.	Baa1	6.75	7/01/30		5,000			5,472,900
Northeast Wste. Disp. Auth. Rev.,
Sludge Corp. Facs.	NR	7.25	7/01/07		1,969			2,017,378
Sludge Corp. Facs., A.M.T.	NR	8.50	7/01/07		2,260			2,366,876
								13,098,384
Massachusetts    3.1%
Massachusetts St., Ser. D, G.O., A.M.B.A.C.	Aaa	5.50	10/01/19		5,000			5,655,300
Massachusetts St. Coll. Bldg., Proj. & Rfdg. Bonds, Ser. A	Aa2	7.50	5/01/14		1,750			2,280,075
Massachusetts St. Cons. Ln., G.O., Ser. C	Aa2	5.25	11/01/30		3,000			3,073,500
Massachusetts St. Hlth. & Edl. Facs. Auth. Rev., Caritas Christi Oblig. Grp. Rfdg., Ser. A	Baa3	5.75	7/01/28		2,000			1,737,460
Caritas Christi Oblig., Ser. B	Baa3	6.75	7/01/16		3,595			3,702,526
Massachusetts St. Wtr. Poll. Abatement Trust, Pool Proj., Ser. 9	Aaa	5.25	8/01/33		2,500	(g)		2,586,600
Massachusetts St. Wtr. Res. Auth., Ser. A, F.S.A.	AAA(b)	6.50	7/15/19		3,225			3,970,298
								23,005,759
Michigan    1.1%
Grand Rapids Downtown Dev. Auth., C.A.B.S., M.B.I.A.	Aaa	Zero	6/01/12		3,000			2,125,020
Kalamazoo Michigan Hosp. Fin. Auth. Hosp. Fac. Rev., E.T.M.	Aaa	9.258(f)	6/01/11		2,000			2,163,400

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 11

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Michigan St. Hosp. Fin. Auth. Rev., Pontiac Osteopathic, Ser. A	Baa3	6.00%	2/01/14	$	3,045		$	3,008,034
Michigan St. Strategic Fd. Res. Recov. Ltd. Oblig. Rev.,
Central Wayne Engy. Rec., Ser. A, A.M.T.	NR	6.90	7/01/19		1,500			127,500
Central Wayne Engy. Rec., Ser. A, A.M.T.	NR	7.00	7/01/27		6,500			552,500
								7,976,454
Nevada    1.1%
Clark Cnty. Impvt. Dist., No. 121 Southern Highlands Area	NR	7.50	12/01/19		4,880			5,272,157
North Las Vegas Local Impvt.,
Spec. Impvt. Dist. No. 60 Aliante	NR	5.60	12/01/12		1,525			1,508,484
Spec. Impvt. Dist. No. 60 Aliante	NR	6.40	12/01/22		1,250			1,249,913
								8,030,554
New Hampshire    0.7%
New Hampshire Higher Edl. & Hlth. Facs. Auth. Rev., Antioch Coll.	NR	7.875	12/01/22		4,900			5,053,958
New Jersey    9.4%
Camden Cnty. Auth. Rev., Hlthcare. Redev. Cooper Proj.	Ba2	6.00	2/15/27		2,250			2,006,235
Jersey City, Gen. Impvt., Ser. B, F.S.A.	Aaa	5.00	9/01/18		2,955			3,119,269
New Jersey Econ. Dev. Auth. Rev., Kapkowski Rd., Ser. A	Aaa	6.375	4/01/31		7,000	(d)		8,566,880
Kapkowski Rd., Ser. A, C.A.B.S., E.T.M.	Aaa	Zero	4/01/12		1,115			796,288
Rfdg. First Mtge. Franciscan Oaks Proj.	NR	5.70	10/01/17		165			149,650
Spec. Facs. Rev., Continental Airlines, Inc. Proj., A.M.T.	Caa2	6.25	9/15/19		5,465			4,822,808
Spec. Facs. Rev., Continental Airlines, Inc. Proj., A.M.T.	Caa2	6.40	9/15/23		3,000			2,597,820

See Notes to Financial Statements.

12 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
New Jersey Hlthcare. Facs. Fin. Auth. Rev.,
Cherry Hill Proj.	NR	8.00%	7/01/27	$	5,000		$	4,799,900
Pascack Valley Hosp. Assoc.	BB+(b)	6.625	7/01/36		2,000			2,003,160
Raritan Bay Med. Ctr.	NR	7.25	7/01/14		3,700			3,808,595
Raritan Bay Med. Ctr.	NR	7.25	7/01/27		4,000			4,115,560
Somerset Med. Ctr.	Baa2	5.50	7/01/33		2,750			2,660,020
St. Peters Univ. Hosp., Ser. A	Baa1	6.875	7/01/30		2,000			2,122,360
New Jersey St. Econ. Dev. Auth. Rev., First Mtge. Fellowship Vlge. Proj., Ser. A	Aaa	9.25	1/01/25		11,500	(d)		12,789,265
New Jersey St. Edl. Facs. Auth. Rev., Felician Coll. of Lodi, Ser. D	NR	7.375	11/01/22		3,800			3,514,430
Tobacco Settlement Fin. Rev. Corp.	Baa2	6.00	6/01/37		3,000			2,456,580
Tobacco Settlement Fin. Rev. Corp.	Baa2	6.75	6/01/39		3,000			2,721,570
Tobacco Settlement Fin. Rev. Corp.	Baa2	6.25	6/01/43		7,250			6,067,525
								69,117,915
New Mexico    0.7%
New Mexico St. Hosp. Equip. Ln. Council Rev., Mem. Med. Ctr., Inc. Proj.	B1	5.375	6/01/18		1,000			798,230
New Mexico St. Hosp. Rev., Mem. Med. Ctr., Inc. Proj.	B1	5.50	6/01/28		5,370			4,054,833
								4,853,063
New York    7.9%
Brookhaven New York Ind. Dev. Agcy. Civic Facs. Rev., Mem. Hosp. Med. Ctr., Inc., Ser. A	NR	8.25	11/15/30		4,000	(e)		4,156,560
Metro. Trans. Auth. Rev., Ser. A, F.G.I.C.	Aaa	5.00	11/15/25		4,185			4,233,462
Metro. Trans. Auth. Rev., Ser. A, A.M.B.A.C.	Aaa	5.50	11/15/18		4,045			4,462,646
Metro. Trans. Auth. Svc. Contract, Ser. B, M.B.I.A.	Aaa	5.50	7/01/19		3,050			3,337,676

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 13

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
New York City Ind. Dev. Agcy. Rev., Rfdg. Laguardia Assoc. L.P. Proj.	NR	6.00%	11/01/28	$	4,000		$	2,252,680
New York City Mun. Wtr. Fin. Auth. Wtr. & Swr. Sys. Rev.	Aaa	9.37(f)	6/15/09		10,000	(e)		10,690,000
New York City Transitional Fin. Auth. Rev., Ser. C	Aa2	5.50	2/15/16		2,500			2,758,475
New York St. Environ. Facs. Corp., Revolving Funds, Ser. B	Aaa	5.00	6/15/27		3,000			3,035,460
New York St. Urban Dev. Corp., Corr. & Youth Facs. Svcs., Ser. A	AA-(b)	5.25	1/01/21		8,775			9,641,268
Suffolk Cnty. Ind. Dev. Agcy. Civic Facs. Rev., South Hampton Hosp. Assoc., Ser. B	NR	7.625	1/01/30		5,000			4,918,600
Tobacco Settlement Fin. Rev. Corp., Ser. A-1	AA-(b)	5.50	6/01/14		8,000			8,545,360
								58,032,187
North Carolina    1.5%
North Carolina Mun. Pwr. Agcy. No. 1 Catawba Rev., Ser. A	Aaa	5.25	1/01/16		8,540			9,270,085
North Carolina Mun. Pwr. Agcy. Pwr. Sys. Rev., Rfdg., Ser. D	Baa3	5.125	1/01/26		2,000			1,924,260
								11,194,345
North Dakota    0.8%
Ward Cnty. Hlthcare. Facs. Rev., Rfdg. Trinity Oblig.,
Group A	BBB+(b)	6.25	7/01/26		4,110			4,170,129
Group B	BBB+(b)	6.25	7/01/21		2,000			2,045,640
								6,215,769
Ohio    1.6%
Cleveland Pub. Pwr. Sys. Rev.,
First Mtge., Ser. A, M.B.I.A.	Aaa	Zero	11/15/12		1,000			702,370
First Mtge., Ser. A, M.B.I.A.	Aaa	Zero	11/15/13		1,500			999,315
Cuyahoga Cnty. Hosp. Facs. Rev., Canton, Inc. Proj.	Baa2	7.50	1/01/30		3,000			3,305,820
Ohio St. Sld. Wste. Rev., Rep. Eng. Steels, Inc., A.M.T.	NR	9.00	6/01/21		2,250	(c)		225

See Notes to Financial Statements.

14 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Ohio St. Solid Wste. Rev., CSC Ltd. Proj., A.M.T.	NR	8.50%	8/01/22	$	7,000	(c)	$	0
Ohio St. Wtr. Dev. Auth. Poll. Ctrl. Facs., First Mtge. Toledo Edison, Ser. A, A.M.T.	Baa2	8.00	10/01/23		5,500			5,798,265
Richland Cnty. Hosp. Facs. Rev., Rfdg. Medcentral Hlth. Sys., Ser. A	A-(b)	6.125	11/15/16		1,000			1,076,180
								11,882,175
Oklahoma    0.6%
Tulsa Mun. Arpt. Trust Rev., Rfdg., AMR Corp., Ser. A, A.M.T.	Caa2	5.80	6/01/35		4,350			4,176,435
Pennsylvania    6.1%
Allegheny Cnty. Hosp. Dev. Auth. Rev.,
Hlth. Sys., Ser. B	B2	9.25	11/15/15		1,000			1,025,650
Hlth. Sys., Ser. B	B2	9.25	11/15/22		1,825			1,871,811
Hlth. Sys., Ser. B	B2	9.25	11/15/30		5,000			5,128,250
Allentown Area Hosp. Auth. Rev., Sacred Heart Hosp. of Allentown, Ser. B	Baa3	6.75	11/15/15		3,250			3,205,215
Cumberland Cnty. Mun. Auth. Ret. Cmnty. Rev., Wesley Affiliated Svcs., Ser. A	NR	7.25	1/01/35		4,000			3,945,920
Dauphin Cnty. Gen. Auth. Hosp. Rev., NW Med. Ctr. Proj.	AAA(b)	8.625	10/15/13		5,035	(d)		5,718,149
Delaware Cnty. Ind. Dev. Auth. Rev., Rfdg. Res. Recov. Facs., Ser. A	Baa3	6.00	1/01/09		6,500			7,006,610
Lancaster Cnty. Hosp. Auth. Rev., Gen. Hosp. Proj.	A-(b)	5.50	3/15/26		1,750			1,755,163
Langhorne Manor Boro. Higher Ed. & Hlth. Auth. Rev., Hosp. Lower Bucks Hosp.	B2	7.35	7/01/22		5,650			5,476,658
Philadelphia Hosps. & Higher Ed. Facs. Auth. Rev.,
Grad. Hlth. Sys.	Ca	7.00	7/01/05		1,655	(c)		16
Grad. Hlth. Sys.	Ca	7.25	7/01/18		2,274	(c)		23
Grad. Hlth. Sys., Ser. A	Ca	6.25	7/01/13		2,019	(c)		20

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 15

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Somerset Cnty. Hosp. Auth. Rev.,
Hlthcare. First Mtge.	NR	8.40%	6/01/09	$	1,425		$	1,431,669
Hlthcare. First Mtge.	NR	8.50	6/01/24		8,805			8,846,119
								45,411,273
Rhode Island    1.3%
Providence Redev. Agcy., C.O.P., Ser. A	NR	8.00	9/01/24		9,270	(d)		9,960,337
South Carolina    2.1%
Greenville Cnty. Sch. Dist. Installment, Bldg. Equity Sooner Tomorrow	A1	5.875	12/01/16		6,500			7,291,375
South Carolina Jobs Econ. Dev. Auth. Hosp. Facs. Rev., Rfdg. & Palmetto Hlth., Ser. C	Baa2	6.875	8/01/27		5,000			5,335,900
Spartanburg Santn. Swr. Dist. Sys. Rev., Ser. B, M.B.I.A.	Aaa	5.25	3/01/30		2,500			2,598,900
								15,226,175
South Dakota    0.6%
South Dakota Econ. Dev. Fin. Auth., Dakota Park, A.M.T.	NR	10.25	1/01/19		4,475			4,489,141
Tennessee    5.5%
Bradley Cnty. Ind. Dev. Brd., Rfdg. Olin Corp. Proj., Ser. C	Baa3	6.625	11/01/17		2,000			2,113,380
Johnson City Hlth. & Edl. Facs. Brd. Hosp. Rev., Rfdg. First Mtge., Ser. A, M.B.I.A.	Aaa	6.75	7/01/17		2,000			2,448,580
Memphis Ctr. City Rev., Fin. Corp., Ser. B	NR	6.50	9/01/28		26,000			25,841,660
Rutherford Cnty. Hlth. & Edl. Facs. Brd., First Mtge. Rev.	NR	9.50	12/01/19		6,300			6,533,730
Shelby Cnty. Hlth. Edl. & Hsg. Fac. Brd. Hosp. Rev., Methodist Hlthcare.	Baa1	6.50	9/01/26		3,500			3,782,625
								40,719,975

See Notes to Financial Statements.

16 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 1)
Texas    6.7%
Abilene Texas Hlth. Facs. Dev. Corp. Ret. Facs. Rev., Sears Methodist Ret., Ser. A	NR	7.00%	11/15/33	$	1,500	$	1,536,060
Alliance Arpt. Auth., Inc. Spec. Facs. Rev., American Airlines, Inc. Proj.	Caa2	7.50	12/01/29		3,000		2,094,630
Austin Hsg. Fin. Corp. Multi-Fam. Hsg. Rev., Stony Creek, Ser. A	Ba2	7.75	11/01/29		9,360		9,465,300
Brazos River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj.,
Ser. C, A.M.T.	Baa2	6.75	10/01/38		1,750		1,823,990
Ser. D	Baa2	5.40	10/01/29		1,000		1,032,440
Dallas-Fort Worth Int’l Arpt. Fac. Impvt. Corp. Rev.,
American Airlines, Inc.	Caa2	6.00	11/01/14		1,500		991,470
American Airlines, Inc.	Caa2	6.375	5/01/35		2,000		1,320,080
American Airlines, Ser. C	Caa2	6.15(f)	11/01/07		3,600		2,672,280
Katy Texas Dev. Auth. Rev., Tax Increment Contract, Ser. B	NR	6.00	6/01/18		4,000		3,893,800
Killeen Indpt. Sch. Dist., P.S.F.G., G.O.	Aaa	5.125	2/15/21		2,560		2,650,342
Lower Colo River Auth., Rfdg., Trans. Svcs. Corp. Proj., Ser. C	Aaa	5.25	5/15/24		4,515		4,689,956
Matagorda Cnty. Nav. Dist. No. 1 Poll. Ctrl. Rev.,
Rfdg. Central Pwr., Ser. A	Baa2	2.15	5/01/30		5,000		5,005,500
Rfdg. Central Pwr., Ser. B, A.M.T.	Baa2	2.35	5/01/30		2,500		2,500,275
New Braunfels Ind. Sch. Dist., C.A.B.S., P.S.F.G.	Aaa	Zero	2/01/12		2,365		1,689,320
North Central Texas Hlth. Fac. Dev. Corp. Rev., Ret. Fac. Sr. Hsg., Ser. A	NR	7.50	11/15/29		5,000		5,114,550
Sabine River Auth. Poll. Ctl. Rev., TXU Energy Co. LLC Proj., Ser. B	Baa2	6.15	8/01/22		1,000		1,038,950
Texas Mun. Pwr. Agcy. Rev.,
M.B.I.A.	Aaa	Zero	9/01/15		3,250		1,902,225
M.B.I.A., E.T.M.	Aaa	Zero	9/01/15		50		29,463
							49,450,631

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 17

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Utah    0.2%
Carbon Cnty. Solid Wste. Disp. Rev., Rfdg. Laidlaw Environ., Ser. A, A.M.T.	NR	7.45%	7/01/17	$	1,000		$	1,040,470
Tooele Cnty. Poll. Ctrl. Rev., Rfdg. Laidlaw Environ., Ser. A, A.M.T.	NR	7.55	7/01/27		4,000	(c)		176,000
								1,216,470
Virginia    1.8%
Chesterfield Cnty. Ind. Dev. Auth. Poll. Ctrl. Rev., Virginia Elec. & Pwr., Ser. A	A3	5.875	6/01/17		2,000			2,124,660
Norfolk Redev. & Hsg. Auth., Multi-Fam. Rental Hsg. Facs. Rev., A.M.T.	NR	8.00	9/01/26		5,825			5,595,204
Pittsylvania Cnty. Ind. Dev. Auth. Rev., Multitrade, Ser. A, A.M.T.	NR	7.55	1/01/19		2,500			2,452,400
Pocahontas Pkwy. Assoc. Toll Rd. Rev., C.A.B.S.,
Ser. B	BB(b)	Zero	8/15/16		7,000			2,538,760
Ser. C	Ba1	Zero	8/15/16		3,300			709,302
								13,420,326
Washington    1.7%
Bellevue Conv. Ctr. Auth.,
King City, Oblig. Rev., M.B.I.A.	Aaa	Zero	2/01/10		870			698,540
King City, Oblig. Rev., M.B.I.A.	Aaa	Zero	2/01/11		1,200			909,948
King City, Oblig. Rev., M.B.I.A.	Aaa	Zero	2/01/12		1,300			929,201
King City, Oblig. Rev., M.B.I.A.	Aaa	Zero	2/01/14		1,385			883,007
Energy Northwest Elec. Rev., Proj. No. 1, Ser. B, M.B.I.A.	Aaa	6.00	7/01/17		4,300			4,893,959
Port Seattle Spec. Facs. Rev., Northwest Airlines Proj., A.M.T.	NR	7.125	4/01/20		600			561,228
Tobacco Settlement Auth. Tobacco Settlement Rev., Asset Bkd.	Baa2	6.625	6/01/32		3,000			2,679,570
Washington St. Pub. Pwr. Sup. Sys. Rev., Nuclear Proj. No. 1, Ser. B, E.T.M.	Aa1	7.25	7/01/09		920			1,086,391
								12,641,844

See Notes to Financial Statements.

18 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
West Virginia    1.2%
West Virginia St. Hosp. Fin. Auth. Hosp. Rev., Oak Hill Hosp., Ser. B	A2	6.75%	9/01/30	$	7,000	(d)	$	8,646,680
Wisconsin    1.5%
Oconto Falls Cmnty. Dev. Auth. Dev. Rev., A.M.T.	NR	8.125	12/01/22		1,425			1,250,993
Oconto Falls Tissue, Inc. Proj., A.M.T.	NR	7.75	12/01/22		8,200			6,925,884
Wisconsin St. Hlth. & Edl. Facs. Auth. Rev., Mercy Hosp. of Janesville, Inc.	A2	6.60	8/15/22		2,790			2,824,736
								11,001,613
Total long-term investments (cost $715,854,021)								699,744,880
SHORT-TERM INVESTMENTS    5.6%
Alabama    0.3%
Decatur Ind. Dev. Brd. Environ. Facs. Rev., BP Amoco Chemical Co. Proj., A.M.T., F.R.D.D.	P-1	1.20	11/03/03		1,200			1,200,000
Decatur Ind. Dev. Brd. Solid Wste. Disp. Rev., Amoco Chemical Co. Proj., A.M.T., F.R.D.D.	VMIG1	1.20	11/03/03		1,100			1,100,000
								2,300,000
California    0.7%
Salinas Multi-Family Rev., Rfdg. Hsg. Brentwood Garden Apts., Ser. A, F.N.M.A., F.R.W.D.	A-1+(b)	1.05	11/06/03		5,000			5,000,000
Delaware    3.7%
Delaware St. Econ. Dev. Auth. Rev.,
Delmarva Pwr. & Lt. Co. Proj., A.M.T., F.R.D.D.	VMIG1	1.26	11/03/03		16,100			16,100,000

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 19

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 1)
Delmarva Pwr. & Lt. Co. Proj., Ser. A, A.M.T., F.R.D.D.	VMIG1	1.26%	11/03/03	$	7,000	$	7,000,000
F.R.D.D.	VMIG1	1.26	11/03/03		4,000		4,000,000
							27,100,000
Ohio    0.3%
Ohio St. Sld. Wste. Rev., BPExploration & Oil Proj., A.M.T., F.R.D.D.	A-1+(b)	1.20	11/03/03		2,600		2,600,000
Pennsylvania
Schuylkill Cnty. Ind. Dev. Auth. Res. Recov. Rev., Rfdg. Northeastern Pwr. Co., Ser. B, A.M.T., F.R.D.D.	A-1+(b)	1.25	11/03/03		100		100,000
Texas    0.6%
Dallas-Fort Worth Reg. Arpt. Rev., Mun. Secs. Trust Rcpts. SGA 49, A.M.T., M.B.I.A., F.R.D.D.	A-1+(b)	1.20	11/03/03		1,755		1,755,000
Port Arthur Nav. Dist. Environ. Facs. Rev., Motiva Enterprises Proj., A.M.T., F.R.W.D.	A-1(b)	1.15	11/05/03		200		200,000
Roaring Fork Mun. Prods. LLC, Ser. 2001-12, Cl. A, A.M.T., F.R.W.D.	A-1+(b)	1.20	11/06/03		2,560		2,560,000
							4,515,000
Total short-term investments (cost $ 41,615,000)							41,615,000
Total Investments    100.4% (cost $757,469,021; Note 5)							741,359,880
Liabilities in excess of other assets    (0.4%)							(2,900,182	)
Net Assets    100.0%						$	738,459,698

See Notes to Financial Statements.

20 Visit our website at www.jennisondryden.com

(a) The following abbreviations are used in portfolio descriptions:

A.M.B.A.C.—American Municipal Bond Assurance Corporation.

A.M.T.—Alternative Minimum Tax.

C.A.B.S.—Capital Appreciation Bonds.

C.O.P.—Certificates of Participation.

E.T.M.—Escrowed to Maturity.

F.G.I.C.—Financial Guaranty Insurance Company.

F.N.M.A.—Federal National Mortgage Association.

F.R.D.D.—Floating Rate Daily Demand Note(h).

F.R.W.D.—Floating Rate Weekly Demand Note(h).

F.S.A.—Financial Security Assurance.

G.N.M.A.—Government National Mortgage Association.

G.O.—General Obligation.

LLC—Limited Liability Company.

L.P.—Limited Partnership.

M.B.I.A.—Municipal Bond Insurance Corporation.

P.S.F.G.—Public School Fund Guaranty.

R.I.B.S.—Residential Interest Bonds.

R.I.T.E.S.—Residual Interest Tax Exempt Securities Receipts.

S.A.V.R.S.—Select Auction Variable Rate Securities.

(b) Standard & Poor’s rating.

(c) Issuer in default of interest payment. Non-income producing security.

(d) Prerefunded issues are secured by escrowed cash or direct U.S. government guaranteed obligations.

(e) All or partial principal amount segregated as initial margin on financial futures contracts.

(f) Inverse floating rate bond. The coupon is inversely indexed to a floating rate. The rate shown is the rate at period end.

(g) Represents a when-issued security.

(h) The maturity date shown is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted.

NR—Not Rated by Moody’s or Standard & Poor’s.

The Fund’s current prospectus contains a description of Moody’s and Standard & Poor’s ratings.

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 21

Statement of Assets and Liabilities

as of October 31, 2003 (Unaudited)

Assets
Investments, at value (cost $757,469,021)	$	741,359,880
Cash		63,689
Interest receivable		13,650,894
Receivable for investments sold		969,931
Receivable for Series shares sold		76,233
Prepaid expenses		20,364
Total assets		756,140,991
Liabilities
Payable for investments purchased		14,970,644
Dividends payable		1,107,595
Payable for Series shares reacquired		766,529
Management fee payable		313,151
Distribution fee payable		210,457
Due to broker—variation margin		154,372
Accrued expenses		141,950
Deferred trustees’ fees		16,595
Total liabilities		17,681,293
Net Assets	$	738,459,698
Net assets were comprised of:
Shares of beneficial interest, at par	$	734,841
Paid-in capital in excess of par		803,869,433
		804,604,274
Undistributed net investment income		1,658,815
Accumulated net realized loss on investments		(51,745,333	)
Net unrealized depreciation on investments		(16,058,058	)
Net assets, October 31, 2003	$	738,459,698

See Notes to Financial Statements.

22 Visit our website at www.jennisondryden.com

Class A
Net asset value and redemption price per share
($478,339,158 ÷ 47,601,471 shares of beneficial interest issued and outstanding)	$	10.05
Maximum sales charge (3% of offering price)		.31
Maximum offering price to public	$	10.36
Class B
Net asset value, offering price and redemption price per share
($216,790,452 ÷ 21,569,870 shares of beneficial interest issued and outstanding)	$	10.05
Class C
Net asset value and redemption price per share
($26,982,801 ÷ 2,684,566 shares of beneficial interest issued and outstanding)	$	10.05
Sales charge (1% of offering price)		.10
Offering price to public	$	10.15
Class Z
Net asset value, offering price and redemption price per share
($16,347,287 ÷ 1,628,210 shares of beneficial interest issued and outstanding)	$	10.04

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 23

Statement of Operations

Six Months Ended October 31, 2003 (Unaudited)

Net Investment Income
Income
Interest	$	23,641,083
Expenses
Management fee		1,910,047
Distribution fee—Class A		610,103
Distribution fee—Class B		578,948
Distribution fee—Class C		104,203
Transfer agent’s fees and expenses		176,000
Reports to shareholders		123,000
Custodian’s fees and expenses		74,000
Registration fees		32,000
Legal fees and expenses		23,000
Audit fee		13,000
Trustees’ fees		10,000
Miscellaneous		15,356
Total expenses		3,669,657
Net investment income		19,971,426
Realized And Unrealized Gain (Loss) On Investments
Net realized gain (loss) on:
Investment transactions		8,948,089
Financial futures transactions		(3,398,371	)
Options written		128,223
		5,677,941
Net change in unrealized appreciation (depreciation) on:
Investments		(10,521,205	)
Financial futures contracts		119,773
		(10,401,432	)
Net loss on investments		(4,723,491	)
Net Increase In Net Assets Resulting From Operations	$	15,247,935

See Notes to Financial Statements.

24 Visit our website at www.jennisondryden.com

Statement of Changes in Net Assets

(Unaudited)

	Six Months Ended October 31, 2003			Year Ended April 30, 2003
Increase (Decrease) In Net Assets
Operations
Net investment income	$	19,971,426		$	43,500,365
Net realized gain (loss) on investment transactions		5,677,941			(2,719,955	)
Net change in unrealized appreciation (depreciation) on investments		(10,401,432	)		6,197,152
Net increase in net assets resulting from operations		15,247,935			46,977,562
Dividends
Dividends from net investment income
Class A		(12,898,914	)		(27,212,576	)
Class B		(5,823,725	)		(13,811,235	)
Class C		(664,771	)		(1,351,027	)
Class Z		(459,249	)		(621,063	)
		(19,846,659	)		(42,995,901	)
Series share transactions (net of share conversions) (Note 6)
Net proceeds from shares sold		35,129,330			72,704,604
Net asset value of shares issued in reinvestment of dividends		8,815,293			19,333,005
Cost of shares reacquired		(77,089,566	)		(140,516,971	)
Net decrease in net assets from Series share transactions		(33,144,943	)		(48,479,362	)
Total decrease		(37,743,667	)		(44,497,701	)
Net Assets
Beginning of period		776,203,365			820,701,066
End of period(a)	$	738,459,698		$	776,203,365
(a) Includes undistributed net investment income of	$	1,658,815		$	1,534,048

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 25

Portfolio of Investments

as of October 31, 2003 (Unaudited)

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
LONG-TERM INVESTMENTS    91.1%
Alabama    2.2%
Alabama St. Pub. Sch. & Coll. Auth., Cap. Impvt., Ser. D	Aa3	5.25%	8/01/05	$	4,000		$	4,270,960
Jefferson Cnty. Swr. Rev. Rfdg., Cap. Impvt., F.G.I.C.	Aaa	5.00	2/01/41		3,000	(d)		3,325,530
								7,596,490
California    5.6%
California St., G.O., M.B.I.A.	Aaa	5.25	2/01/27		3,000			3,111,000
California St. Dept. Wtr. Res. Pwr. Sup. Rev., Ser. A, A.M.B.A.C.	Aaa	5.375	5/01/18		2,250	(e)		2,439,720
Inland Empire Solid Wste. Landfill Impvt., Proj. B, F.S.A., A.M.T.	Aaa	6.00	8/01/16		2,000	(d)		2,264,320
San Diego Cnty. Wtr. Rev., C.O.P., F.G.I.C.	Aaa	9.93(c)	4/26/06		5,800			6,907,800
San Joaquin Hills Trans. Corridor Agcy. Toll Rd. Rev., C.A.B.S., Ser. A, M.B.I.A.	Aaa	Zero	1/15/36		10,000			1,672,700
South Orange Cnty. Pub. Fin., Ser. C, Foothill Area Proj., F.G.I.C.	Aaa	8.00	8/15/08		2,000			2,508,460
								18,904,000
Colorado    1.6%
Denver City & Cnty. Arpt. Rev., Ser. C, M.B.I.A., A.M.T.	Aaa	5.60	11/15/11		5,000			5,474,750
District of Columbia    4.3%
Dist. of Columbia Hosp. Rev., Medlantic Healthcare Group A,
M.B.I.A., E.T.M.	Aaa	5.875	8/15/19		3,500			3,885,490
M.B.I.A., E.T.M.	Aaa	5.75	8/15/26		3,000			3,307,470
Dist. of Columbia, G.O.,
Ser. A, M.B.I.A.	Aaa	6.50	6/01/10		3,095	(e)		3,686,950
Ser. A, M.B.I.A., E.T.M.	Aaa	6.50	6/01/10		2,905			3,509,966
								14,389,876

See Notes to Financial Statements.

26 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 1)
Florida    4.0%
Brevard Cnty. Hlth. Facs. Auth., Holmes Reg. Med. Ctr. Proj., M.B.I.A.	Aaa	5.60%	10/01/10	$	6,000	$	6,662,280
Indian River Cnty. Wtr. & Swr.
Rev., Ser. A, F.G.I.C.	Aaa	5.25	9/01/18		2,600		2,794,610
Orange Cnty. Tourist Dev. Tax Rev.	Aaa	5.00	10/01/17		4,000		4,205,040
							13,661,930
Georgia    2.9%
Atlanta Arpt. Facs. Rev., Ser. A, A.M.B.A.C.	Aaa	6.50	1/01/10		2,000		2,395,060
Georgia Mun. Elec. Auth., Pwr. Rev.,
Ser. B, M.B.I.A.	Aaa	6.20	1/01/10		3,495		4,095,301
Newnan Hosp. Auth. Rev.	Aaa	5.50	1/01/21		3,185		3,434,290
							9,924,651
Hawaii    2.7%
Hawaii Dept. Budget & Fin., Hawaiian Elec. Co. Proj., Ser. C, A.M.B.A.C., A.M.T.	Aaa	6.20	11/01/29		8,000		8,948,960
Idaho    0.5%
Idaho Hsg. & Fin. Assoc., Sngl. Fam. Mtge., Ser. E, A.M.T.	Aaa	5.55	7/01/31		1,465		1,527,160
Illinois    10.8%
Chicago Gas Sup. Rev., People’s Gas, A.M.B.A.C., T.C.R.S.	Aaa	6.10	6/01/25		7,400		7,999,178
Chicago Midway Arpt. Rev., Ser. B, M.B.I.A., A.M.T.	Aaa	5.75	1/01/22		5,000		5,314,250
Chicago O’Hare Int’l. Arpt. Pass. Facs. Chrg., Ser. A, A.M.B.A.C.	Aaa	5.625	1/01/15		2,000		2,167,520
Illinois St.,
G.O.	Aaa	5.625	4/01/15		3,250		3,612,180
G.O., F.S.A.	Aaa	5.25	4/01/22		2,500		2,608,350
G.O., F.G.I.C.	Aaa	5.25	1/01/28		2,000		2,046,880

See Notes to Financial Statements.

Dryden Municipal Bond Fund/Insured Series 27

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 1)
Illinois St. Civic Ctr., Spec. St. Oblig., F.S.A.	Aaa	5.50%	12/15/15	$	2,710	$	3,020,024
Metro. Pier & Expo. Auth., McCormick, Ser. A, M.B.I.A., C.A.B.S.	Aaa	Zero	6/15/35		9,940		1,707,990
McCormick, Ser. A, M.B.I.A., C.A.B.S.	Aaa	Zero	6/15/38		6,250		898,938
Onterie Ctr. Hsg. Fin. Corp., Mtge. Rev.,
Ser. A, M.B.I.A.	Aaa	7.00	7/01/12		1,465		1,489,348
Ser. A, M.B.I.A.	Aaa	7.05	7/01/27		5,400		5,444,658
							36,309,316
Kansas    0.7%
Saline Cnty. Unif. Sch. Dist., G.O., F.S.A.	Aaa	5.50	9/01/17		2,000		2,219,440
Louisiana    1.3%
New Orleans Fin. Auth., Sngl. Fam. Mtge., Ser. B-2, G.N.M.A./F.N.M.A., A.M.T.	Aaa	6.00	12/01/21		1,105		1,149,951
New Orleans, G.O., C.A.B.S., A.M.B.A.C.	Aaa	Zero	9/01/09		4,000		3,327,600
							4,477,551
Maryland    0.1%
Prince Georges Cnty. Hsg., Sngl. Fam. Mtge., Ser. A, G.N.M.A./F.N.M.A., A.M.T.	AAA(b)	6.15	8/01/19		380		397,172
Massachusetts 3.4%
Boston Convention Ctr. Act of 1997, Spec. Oblig., Ser. A, A.M.B.A.C.	Aaa	5.00	5/01/19		2,000		2,080,020
Massachusetts St., Cons. Ln., Ser. C, G.O.	Aaa	5.50	11/01/10		4,000		4,589,640
Massachusetts St. Wtr. Res. Auth., Ser. A, F.S.A.	AAA(b)	6.50	7/15/19		4,000		4,924,400
							11,594,060
Michigan    1.2%
Saginaw Hosp. Fin. Auth., Hosp. Rev., Ser. C, M.B.I.A.	Aaa	6.50	7/01/11		4,000		4,035,640

See Notes to Financial Statements.

28 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)			Value (Note 1)
Minnesota    4.0%
Bass Brook Poll. Ctrl. Rev., M.B.I.A.	Aaa	6.00%	7/01/22	$	1,600		$	1,621,648
Becker Indpt. Sch. Dist. No. 726.,
Ser. A, F.S.A.	Aaa	6.00	2/01/15		1,610			1,836,028
Ser. A, F.S.A.	Aaa	6.00	2/01/16		1,750			1,995,682
Minneapolis & St. Paul Metro. Arpts.,
Ser. A, F.G.I.C.	Aaa	5.75	1/01/32		4,285			4,644,512
Ser. C, F.G.I.C.	Aaa	5.50	1/01/19		3,000			3,271,650
								13,369,520
Missouri    1.0%
St. Louis Arpt. Rev., Arpt. Dev. Proj., Ser. A, M.B.I.A.	Aaa	5.625	7/01/19		3,000			3,319,140
New Jersey    2.4%
Jersey City Swr. Auth.,
Rev., A.M.B.A.C.	Aaa	6.00	1/01/10		2,585			3,010,595
Rev., A.M.B.A.C.	Aaa	6.25	1/01/14		4,255			5,075,534
								8,086,129
New York    16.9%
Erie Cnty. Ind. Dev. Agcy. Sch. Facs. Rev., City of Buffalo Proj., F.S.A.	Aaa	5.75	5/01/21		2,750			3,045,845
Islip Res. Rec. Facs., Ser. B, A.M.B.A.C., A.M.T.	Aaa	7.20	7/01/10		1,750			2,134,598
Metro. Trans. Auth., N.Y. Rev. Trans., Ser. A, F.S.A.	Aaa	5.00	11/15/25		2,000			2,025,160
Metro. Trans. Auth., N.Y.
Svc. Contract,
Ser. B, M.B.I.A.	Aaa	5.50	7/01/19		5,000			5,471,600
Ser. B, M.B.I.A.	Aaa	5.50	7/01/23		7,285			7,818,772
Metro. Trans. Auth., N.Y. Svc. Contract Rfdg., Ser. A, M.B.I.A.	Aaa	5.50	7/01/20		3,000			3,271,590
Metro. Trans. Auth., N.Y. Trans. Facs. Rev., Ser. A, F.S.A.	Aaa	5.75	7/01/11		5,000	(d)		5,761,400
New York City Mun. Wtr. Fin. Auth., Wtr. & Swr. Rev., Ser. B	Aa2	6.00	6/15/33		3,025			3,521,312

See Notes to Financial Statements.

Dryden Municipal Bond Fund/Insured Series 29

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 1)
New York NY, Ser. G, M.B.I.A.	Aaa	5.75%	2/01/14	$	3,000	$	3,263,460
New York St. Dorm. Auth. Rev., Sch. Dist. Fin. Proj., Ser. A, M.B.I.A.	Aaa	5.75	10/01/17		3,000		3,401,280
New York St. Environ. Facs. Corp., Revolving Funds, Second Resolution, Ser. I	Aaa	5.00	6/15/24		3,000		3,052,590
New York St. Environ. Facs. Poll. Ctrl. Rev.,
Ser. C	Aaa	5.70	7/15/12		25		27,544
Ser. C	Aaa	5.75	7/15/13		10		11,028
Ser. C	Aaa	5.80	7/15/14		35		38,250
New York St. Urban Dev. Corp. Corr. & Youth Facs. Svcs., Ser. A	AA-(b)	5.25	1/01/21		4,010		4,405,867
Suffolk Cnty. Judicial Facs., John P. Cohalan Complex, A.M.B.A.C.	Aaa	5.75	10/15/12		3,000		3,403,950
Tobacco Settlement Fin. Corp.,
Asset-Backed, Ser. A-1	AA-(b)	5.50	6/01/14		3,000		3,204,510
Asset-Backed, Ser. A-1	Aaa	5.25	6/01/22		3,000		3,130,710
							56,989,466
North Carolina    0.8%
North Carolina Mun. Pwr. Agcy. No. 1, Catawba Elec. Rev., Ser. A, M.B.I.A.	Aaa	5.25	1/01/19		2,500		2,660,675
Ohio    1.6%
Bowling Green St. Univ., F.G.I.C.	Aaa	5.75	6/01/16		2,815		3,189,113
Ohio St. Wtr. Dev. Auth. Rev., Wtr. Dev., Fresh Wtr. Ser. A	Aa2	5.125	12/01/18		2,000		2,108,760
							5,297,873
Oklahoma    3.6%
Edmond Pub. Wks. Auth. Util. Rev., A.M.B.A.C.	Aaa	5.625	7/01/24		4,440		4,752,976
Norman Reg. Hosp. Auth., Rev., Ser. A, M.B.I.A.	Aaa	5.50	9/01/11		4,110		4,542,043
Oklahoma City Arpt. Trust, Jr. Lien, Ser. 24, A.M.B.A.C., A.M.T.	Aaa	5.75	2/01/18		2,620		2,829,469
							12,124,488

See Notes to Financial Statements.

30 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)				Value (Note 1)
Pennsylvania    1.6%
Pennsylvania St. Ind. Dev. Auth. Rev., Econ. Dev.	Aaa	5.50%	7/01/17	$	5,000			$	5,537,300
South Carolina    1.9%
Lexington Wtr. & Swr., Rev., Ser. A, M.B.I.A.	Aaa	5.75	4/01/20		4,180				4,672,989
Univ. of South Carolina, Rev., Ser. A, F.G.I.C.	Aaa	5.75	6/01/30		1,615				1,769,281
									6,442,270
Texas    5.8%
Corpus Christi Util. Sys. Rev.,
Ser. A, F.S.A.	Aaa	6.00	7/15/19		3,255				3,709,300
Ser. A, F.S.A.	Aaa	6.00	7/15/20		3,450				3,915,302
Houston Arpt. Sys. Rev., E.T.M.	Aaa	7.20	7/01/13		3,265				3,938,177
Lower River Auth. Rfdg., LCRA Trans. Svcs. Corp. Proj., Ser. C, A.M.B.A.C.	Aaa	5.25	5/15/23		2,010				2,097,294
Mission Cons. Indpt. Sch. Dist., G.O., P.S.F.G.	Aaa	5.75	2/15/19		1,360				1,515,965
Northwest Indpt. Sch. Dist.,
Sch. Bldg. & Rfdg., G.O., P.S.F.G.	Aaa	5.50	8/15/17		1,080				1,191,359
Sch. Bldg. & Rfdg., G.O., P.S.F.G.	Aaa	5.50	8/15/18		1,000		��		1,095,840
Univ. of Texas Univ. Rev., Fin. Sys., Ser. B	Aaa	5.25	8/15/20		1,000				1,065,310
Van Alstyne Indpt. Sch. Dist. Rfdg., G.O., P.S.F.G.	Aaa	5.95	8/15/29		1,105				1,213,224
									19,741,771
Vermont    1.0%
Vermont Hsg. Fin. Agcy., Sngl. Fam. Mtge., Ser. 13A, F.S.A., A.M.T.	Aaa	5.45	5/01/26		3,305				3,477,686
Virginia    0.6%
Chesapeake Bay Brdg. & Tunnel Dist. Rev., Gen. Resolution, F.G.I.C.	Aaa	5.75	7/01/08		2,000	(d)			2,188,880

See Notes to Financial Statements.

Dryden Municipal Bond Fund/Insured Series 31

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 1)
Washington    7.6%
Clark Cnty. Sch. Dist. No. 114, G.O., F.S.A.	Aaa	5.25%	12/01/18	$	3,800	$	4,059,502
King Cnty. Sch. Dist. No. 411, G.O., F.S.A.	Aaa	6.25	12/01/15		1,900		2,207,211
Ocean Shores, G.O., F.G.I.C.	Aaa	5.50	12/01/20		1,570		1,698,112
Port. Seattle Rev., Rfdg., Ser. A	Aaa	5.375	6/01/13		2,000		2,196,340
Washington St. Pub. Pwr. Supply, Ref., Ser. B, F.G.I.C., C.A.B.S.,
T.C.R.S.,	Aaa	Zero	7/01/08		4,500		3,930,615
Ser. A, M.B.I.A., E.T.M., C.A.B.S.	Aaa	Zero	7/01/11		5,210		3,899,529
M.B.I.A.	Aaa	5.75	7/01/10		7,000		7,832,370
							25,823,679
West Virginia    1.0%
Clarksburg Wtr. Rev., F.G.I.C.	Aaa	5.25	9/01/19		2,000		2,148,980
West Virginia St. Wtr. Dev. Auth., Ser. B, A.M.B.A.C., A.M.T.	Aaa	5.875	7/01/20		1,015		1,091,034
							3,240,014
Total long-term investments (cost $287,664,266)							307,759,887
SHORT-TERM INVESTMENTS    8.4%
California    1.3%
California Hsg. Fin. Agy. Rev., Home Mtge., Ser. R, A.M.B.A.C., F.R.D.D.	VMIG1	1.20	11/03/03		4,210		4,210,000
Georgia    0.4%
Monroe Cnty. Dev. Auth. Poll. Ctrl. Rev., Oglethorpe Pwr. Corp. Proj., A.M.B.A.C., F.R.D.D.	A-1+(b)	1.16	11/03/03		1,300		1,300,000

See Notes to Financial Statements.

32 Visit our website at www.jennisondryden.com

Description (a)	Moody’s Rating	Interest Rate	Maturity Date	Principal Amount (000)		Value (Note 1)
Illinois    2.2%
Illinois Hlth. Facs. Auth. Rev., Resurrection Hlth., Ser. A, F.S.A., F.R.D.D.	VMIG1	1.15%	11/03/03	$	5,900	$	5,900,000
Mun. Secs. Trust Cert., Ser. 2000-93, Cl. A, A.M.B.A.C., F.R.D.D.	A-1(b)	1.20	11/03/03		1,600		1,600,000
							7,500,000
Kentucky    1.6%
Kentucky Econ. Dev. Fin. Auth. Hosp. Facs. Rev., Baptist Hlthcare., Ser. C, M.B.I.A., F.R.D.D.	VMIG1	1.15	11/03/03		5,300		5,300,000
New Jersey    1.3%
New Jersey Econ. Dev. Auth. Wtr. Facs. Rev., United Wtr. Proj., Ser. C, A.M.B.A.C., F.R.D.D., A.M.T.	VMIG1	1.25	11/03/03		4,365		4,365,000
Pennsylvania    0.9%
Philadelphia Mun. Auth. Rev.	Aaa	6.90	11/15/03		3,000		3,000,000
Texas    0.7%
Harris Cnty. Ind. Dev. Corp. Poll. Ctrl. Rev., Exxon Proj., A.M.T., F.R.D.D.	A-1+(b)	1.20	11/03/03		1,700		1,700,000
Harris Cnty. Ind. Dev. Corp. Solid Wste. Disp. Rev., Exxon Proj., A.M.T., F.R.D.D.	VMIG1	1.15	11/03/03		800		800,000
							2,500,000
Total short-term investments (cost $28,175,000)							28,175,000
Total Investments    99.5% (cost $315,839,266; Note 5)							335,934,887
Other assets in excess of liabilities    0.5%							1,820,306
Net Assets    100.0%						$	337,755,193

See Notes to Financial Statements.

Dryden Municipal Bond Fund/Insured Series 33

Portfolio of Investments

as of October 31, 2003 (Unaudited) Cont’d.

(a) The following abbreviations are used in portfolio descriptions:

A.M.B.A.C.—American Municipal Bond Assurance Corporation.

A.M.T.—Alternative Minimum Tax.

C.A.B.S.—Capital Appreciation Bonds.

C.O.P.—Certificates of Participation.

E.T.M.—Escrowed to Maturity.

F.G.I.C.—Financial Guaranty Insurance Company.

F.N.M.A.—Federal National Mortgage Association.

F.R.D.D.—Floating Rate Daily Demand Note (g).

F.S.A.—Financial Security Assurance.

G.N.M.A.—Government National Mortgage Association.

G.O.—General Obligation.

M.B.I.A.—Municipal Bond Insurance Corporation.

P.S.F.G.—Public School Fund Guaranty.

T.C.R.S.—Transferable Custodial Receipts.

(b) Standard & Poor’s rating.

(c) Inverse floating rate bond. The coupon is inversely indexed to a floating rate. The rate shown is the rate at year end.

(d) Prerefunded issues are secured by escrowed cash or direct U.S. government guaranteed obligations.

(e) Pledged as initial margin for financial futures contracts.

(g) The maturity date shown is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted.

The Fund’s current prospectus contains a description of Moody’s and Standard & Poor’s ratings.

See Notes to Financial Statements.

34 Visit our website at www.jennisondryden.com

This Page Intentionally Left Blank

Statement of Assets and Liabilities

as of October 31, 2003 (Unaudited)

Assets
Investments, at value (cost $315,839,266)	$	335,934,887
Cash		15,040
Interest receivable		4,757,116
Receivable for Series shares sold		115,278
Prepaid expenses		10,765
Total assets		340,833,086
Liabilities
Payable for investments purchased		2,144,578
Dividends payable		359,873
Payable for Series shares reacquired		249,581
Management fee payable		143,569
Distribution fee payable		85,557
Accrued expenses		62,411
Due to broker—variation margin		18,912
Deferred trustees’ fees		13,412
Total liabilities		3,077,893
Net Assets	$	337,755,193
Net assets were comprised of:
Shares of beneficial interest, at par	$	296,036
Paid-in capital in excess of par		307,816,105
		308,112,141
Undistributed net investment income		349,348
Accumulated net realized gain on investments		9,136,632
Net unrealized appreciation on investments		20,157,072
Net assets, October 31, 2003	$	337,755,193

See Notes to Financial Statements.

36 Visit our website at www.jennisondryden.com

Statement of Assets and Liabilities

as of October 31, 2003 (Unaudited) Cont’d.

Class A
Net asset value and redemption price per share
($266,800,409 ÷ 23,388,220 shares of beneficial interest issued and outstanding)	$	11.41
Maximum sales charge (3% of offering price)		.35
Maximum offering price to public	$	11.76
Class B
Net asset value, offering price and redemption price per share
($55,796,651 ÷ 4,886,783 shares of beneficial interest issued and outstanding)	$	11.42
Class C
Net asset value and redemption price per share
($8,122,159 ÷ 711,324 shares of beneficial interest issued and outstanding)	$	11.42
Sales charge (1% of offering price)		.12
Offering price to public	$	11.54
Class Z
Net asset value, offering price and redemption price per share
($7,035,974 ÷ 617,231 shares of beneficial interest issued and outstanding)	$	11.40

See Notes to Financial Statements.

Dryden Municipal Bond Fund/Insured Series 37

Statement of Operations

Six Months Ended October 31, 2003 (Unaudited)

Net Investment Income
Income
Interest	$	8,570,006
Expenses
Management fee		882,369
Distribution fee—Class A		347,297
Distribution fee—Class B		146,827
Distribution fee—Class C		31,737
Transfer agent’s fees and expenses		85,000
Custodian’s fees and expenses		54,000
Reports to shareholders		44,000
Registration fees		30,000
Legal fees and expenses		20,000
Audit fee		9,000
Trustees’ fees		6,000
Miscellaneous		6,725
Total expenses		1,662,955
Net investment income		6,907,051
Realized And Unrealized Gain (Loss) On Investments
Net realized gain (loss) on:
Investment transactions		4,229,593
Financial futures transactions		(1,284,601	)
Options written		53,274
		2,998,266
Net change in unrealized appreciation (depreciation) on:
Investments		(8,812,161	)
Financial futures contracts		92,388
		(8,719,773	)
Net loss on investments		(5,721,507	)
Net Increase In Net Assets Resulting From Operations	$	1,185,544

See Notes to Financial Statements.

38 Visit our website at www.jennisondryden.com

Statement of Changes in Net Assets

(Unaudited)

	Six Months Ended October 31, 2003			Year Ended April 30, 2003
Increase (Decrease) In Net Assets
Operations
Net investment income	$	6,907,051		$	14,843,441
Net realized gain on investment transactions		2,998,266			7,450,868
Net change in unrealized appreciation (depreciation) on investments		(8,719,773	)		7,510,833
Net increase in net assets resulting from operations		1,185,544			29,805,142
Dividends and distributions from net investment income
Class A		(5,476,232	)		(11,672,945	)
Class B		(1,083,130	)		(2,338,618	)
Class C		(145,560	)		(285,559	)
Class Z		(166,025	)		(298,062	)
		(6,870,947	)		(14,595,184	)
Series share transactions (net of share conversions) (Note 6)
Net proceeds from shares sold		21,407,007			64,183,997
Net asset value of shares issued in reinvestment of dividends		4,075,573			8,444,955
Cost of shares reacquired		(41,478,589	)		(55,468,023	)
Net increase (decrease) in net assets from Series share transactions		(15,996,009	)		17,160,929
Total increase (decrease)		(21,681,412	)		32,370,887
Net Assets
Beginning of period		359,436,605			327,065,718
End of period(a)	$	337,755,193		$	359,436,605
(a) Includes undistributed net investment income of	$	349,348		$	313,244

See Notes to Financial Statements.

Dryden Municipal Bond Fund/Insured Series 39

Notes to Financial Statements

(Unaudited)

Dryden Municipal Bond Fund (the “Fund”), formerly known as “Prudential Municipal Bond Fund”, is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund was organized as an unincorporated business trust in Massachusetts on November 3, 1986 and consists of two series: the “High Income Series” and the “Insured Series”. Investment operations for Class A, Class B, Class C and Class Z shares of each Series commenced on January 22, 1990, September 17, 1987, August 1, 1994 and September 16, 1996, respectively.

The investment objectives of the Series are as follows: (i) the objective of the High Income Series is to provide the maximum amount of income that is eligible for exclusion from federal income taxes, (ii) the objective of the Insured Series is to provide the maximum amount of income that is eligible for exclusion from federal income taxes consistent with the preservation of capital. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic and political developments in a specific state, region or industry.

Note 1. Accounting Policies

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

Securities Valuation: The Fund values municipal securities (including commitments to purchase such securities on a “when-issued” basis) on the basis of prices provided by a pricing service which uses information with respect to transactions in comparable securities and various relationships between securities in determining values. Securities for which reliable market quotations are not readily available or for which the pricing service does not provide a valuation methology, or does not present fair value, are valued at fair value as determined under procedures established by the Trustees.

Securities, including options, future contracts and options thereon, for which the primary market is on a national securities exchange, commodities exchange or board of trade are valued at the last sale price on such exchange or board of trade, on the date of valuation or, if there was no sale on such day, at the average of readily available closing bid and asked prices on such day or at the bid price in the absence of an asked price.

40 Visit our website at www.jennisondryden.com

Securities, including options, that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed to be over-the-counter, are valued at the average of the most recently quoted bid and asked prices provided by a principal maker or dealer.

Short-term securities which mature in sixty days or less are valued at amortized cost, which approximates market value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. Short-term securities which mature in more than sixty days are valued at current market quotations.

Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin”. Subsequent payments, known as “variation margin”, are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain or loss. When the contract expires or is closed, the gain or loss is realized and is presented in the Statement of Operations as net realized gain or loss on financial futures contracts.

The Fund invests in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets.

Options: The Fund may either purchase or write options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates with respect to securities which the Fund currently owns or intends to purchase. The Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a

Dryden Municipal Bond Fund 41

Notes to Financial Statements

Cont’d

liability. The asset or liability is adjusted daily to reflect the current market value of the option.

If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is an adjustment to the proceeds from the sale or the cost of the purchase in determining whether the Fund has realized a gain or loss. The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in net realized gain or loss on investment transactions. Gain or loss on written options is presented separately as net realized gain or loss on written options.

The Fund, as writer of an option, has no control over whether the underlying securities may be sold (called) or purchased (put). As a result, the Fund bears the market risk of an unfavorable change in the price of the security underlying the written option. The Fund, as purchaser of an option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts.

Interest Rate Swaps: The Fund may enter into swap agreements. An interest rate swap agreement is an agreement between two parties to exchange a series of cash flows at specified intervals. Based on a notional amount, each party pays an interest rate. Interest on the securities in the swap are included in the value of the exchange. The swaps are valued daily at current market value and any unrealized gain or loss is included in the net unrealized appreciation or depreciation on investments. Gain or loss is realized on the termination date of the swap and is equal to the difference between the Fund’s basis in the swap and the proceeds of the closing transaction, including fees. During the period that the swap agreement is open, the Fund may be subject to risk from the potential inability of the counterparty to meet the terms of the agreement. The use of derivative transactions, such as written options, financial future contracts and interest rate swaps, may involve elements of both market and credit risk in excess of the amounts reflected in the Statement of Assets and Liabilities.

Inverse Floaters: The Series invests in variable rate securities commonly called “inverse floaters”. The interest rates on these securities have an inverse relationship to market interest rate of other securities or the value of an index. Changes in interest rates on the other security or index inversely affect the rate paid on the inverse floater, and the inverse floater’s price will be more volatile than that of a fixed-rate bond.

42 Visit our website at www.jennisondryden.com

Additionally, some of these securities contain a “leverage factor” whereby the interest rate moves inversely by a “factor” to the benchmark rate. Certain interest rate movements and other market factors can substantially affect the liquidity of inverse floating rate notes.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses on sales of investments are calculated on the identified cost basis. Interest income, including amortization of premium and accretion of discount on debt securities, as required is recorded on the accrual basis. Expenses are recorded on the accrual basis which may require the use of certain estimates by management.

Net investment income or loss (other than distribution fees, which are charged directly to the respective class) and realized and unrealized gains or losses are allocated daily to each class of shares based upon the relative proportion of net assets of each class at the beginning of the day.

Dividends and Distributions: The Fund declares daily dividends from the net investment income and distributions of net realized capital gains, if any, annually. Dividends and distributions, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-dividend date. Permanent book/tax differences relating to income and gains are reclassified to paid in capital when they arise.

Federal Income Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.

Note 2. Agreements

The Fund has a management agreement with Prudential Investments LLC (“PI”). Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management (“PIM”). The Subadvisory Agreement provides that PIM furnishes investment advisory services in connection with the management of the Fund. PI pays for the services of PIM, the cost of compensation of officers for the Fund, occupancy and certain clerical and bookkeeping cost of the Fund. The Fund bears all other costs and expenses.

Dryden Municipal Bond Fund 43

Notes to Financial Statements

Cont’d

The management fee paid PI is computed daily and payable monthly, at an annual rate of .50 of 1% of the average daily net assets of each Series up to $1 billion and .45 of 1% of the average daily net assets of each Series in excess of $1 billion.

The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B and Class C shares, pursuant to plans of distribution (the “Class A, B and C Plans”), regardless of expenses actually incurred by it. The distribution fees are accrued daily and payable monthly. No distribution or service fees earned by PIMS as distributor of the Class Z shares of the Fund.

Pursuant to the Class A, B and C Plans, the Fund compensates PIMS for distribution-related activities at an annual rate of up to .30 of 1%, .50 of 1% and 1% of the average daily net assets of the Class A, B and C shares, respectively. For the six months ended October 31, 2003, such expenses for the Fund were .25 of 1%, .50 of 1% and .75 of 1% of the average daily net assets of the Class A, B and C shares, respectively.

PIMS has advised the High Income Series and Insured Series that it received approximately $84,200 ($72,300-Class A; $11,900-Class C) and $60,100 ($52,100-Class A; $8,000-Class C), respectively, in front-end sales charges during the six months ended October 31, 2003. From these fees, PIMS paid such sales charges to affiliated broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.

PIMS has advised the High Income Series and Insured Series that for the six months ended October 31, 2003, it received approximately $161,700 ($158,400-Class B; $3,300-Class C) and $73,100 ($70,000-Class B; $3,100-Class C), respectively, in contingent deferred sales charges imposed upon certain redemptions by Class B and C shareholders.

PI, PIMS and PIM are indirect wholly owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a syndicated credit agreement (“SCA”) with a group of banks. The SCA

44 Visit our website at www.jennisondryden.com

provides for a commitment of $800 million and allows the Funds to increase the commitment to $1 billion, if necessary. Interest on any borrowings will be at market rates. The Funds pay a commitment fee of .08 of 1% of the unused portion of the SCA. The commitment fee is accrued and paid quarterly and is allocated to the Funds based on net assets. The expiration date of the SCA was May 2, 2003. On May 2, 2003, the SCA was renewed under the same terms and conditions (“May 2003 renewal”). The expiration date of the May 2003 renewal is April 30, 2004. The Fund did not borrow any amounts pursuant to the SCA during the six months ended October 31, 2003.

Note 3. Other Transactions With Affiliates

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. During the six months ended October 31, 2003, the Fund incurred fees of approximately $118,100 and $63,100 for the High Income Series and Insured Series, respectively, for the services of PMFS. As of October 31, 2003, approximately $19,300 and $10,400 for the High Income Series and Insured Series, respectively, of such fees were due to PMFS. Transfer agent fees and expenses in the Statement of Operations also include certain out of pocket expenses paid to nonaffiliates.

The Fund pays networking fees to affiliated and unaffiliated broker/dealers. These networking fees are payments made to broker/dealers that clear mutual fund transactions through a national clearing system. The Fund incurred fees of approximately $27,000 ($21,000-High Income Series; $6,000-Insured Series) in total networking fees, of which the amount relating to the services of Wachovia Securities LLC (“Wachovia”) and Prudential Securities, Inc. (“PSI”), an affiliate of PI, was approximately $24,000 ($18,900-High Income Series; $5,100-Insured Series) for the six months ended October 31, 2003. Prudential and Wachovia Corp. formed a joint venture (“Wachovia Securities, LLC”) whereby Prudential and Wachovia Corp. combined their brokerage business with Prudential holding a minority interest. Prior to July 1, 2003, PSI was an indirect, wholly owned subsidiary of Prudential. As of October 31, 2003, approximately $3,800 ($3,000-High Income Series; $800-Insured Series) of such fees were due to Wachovia. These amounts are included in transfer agent’s fees in the Statements of Operations.

Dryden Municipal Bond Fund 45

Notes to Financial Statements

Cont’d

Note 4. Portfolio Securities

Purchases and sales of portfolio securities, excluding short-term investments, for the six months ended October 31, 2003, were as follows:

Series	Purchases	Sales
High Income	$366,983,169	$430,148,051
Insured	128,599,371	167,957,324

Transactions in options written during the six months ended October 31, 2003, were as follows:

	Contracts			Premiums
High Income
Balance as of April 30, 2003	$	—		$	—
Options written		281			140,695
Options expired		(207	)		(87,744	)
Options terminated in
closing purchase
transactions		(74	)		(52,951	)
Balance as of October 31, 2003	$	—		$	—
Insured
Balance as of April 30, 2003	$	—		$	—
Options written		119			57,151
Options expired		(96	)		(40,693	)
Options terminated in
closing purchase
transactions		(23	)		(16,458	)
Balance as of October 31, 2003	$	—		$	—

During the six months ended October 31, 2003, the High Income Series entered into financial futures contracts. Details of open contracts at October 31, 2003 are as follows:

Series	Number of Contracts	Type	Expiration Date	Value at October 31, 2003		Value at Trade Date		Unrealized Appreciation/ (Depreciation)
High Income		Short Positions:
		U.S. Treasury
	126	Bond Futures	Dec. 03	$	13,698,562	$	13,701,659	$	3,097
		U.S. Treasury
	190	10 yr. Notes Futures	Dec. 03		21,336,406		21,363,847		27,441
		U.S. Treasury
	83	5 yr. Notes Futures	Dec. 03		9,280,438		9,300,922		20,484
								$	51,022

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Series	Number of Contracts	Type	Expiration Date	Value at October 31, 2003	Value at Trade Date	Unrealized Appreciation/ (Depreciation)
Insured		Long Positions:
		U.S. Treasury
	10	Bond Futures	Dec. 03	1,087,188	1,085,965	$	1,223
		Short Positions:
		U.S. Treasury
	150	5 yr. Notes Futures	Dec. 03	16,771,875	16,830,283		58,408
		U.S. Treasury
	22	10 yr. Notes Futures	Dec. 03	2,470,531	2,472,351		1,820
						$	61,451

Note 5. Tax Information

The High Income Series has a net capital loss carryforward as of April 30, 2003 of approximately $57,268,000, of which $6,383,000 expires in 2004, $3,225,000 expires in 2005, $554,000 expires in 2006, $3,137,000 expires in 2007, $5,906,000 expires in 2008, $20,095,000 expires in 2009, $13,512,000 expires in 2010 and $4,456,000 expires in 2011. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such carryforwards. The tax basis differs from the amount on the Statement of Assets and Liabilities primarily due to differences in the treatment of discount and premium amortization for book and tax purposes.

As of April 30, 2003, the components of distributable earnings on a tax basis were as follows:

Series	Tax-Exempt		Ordinary Income		Long-Term Capital Gains
High Income	$	2,568,991	$	103,883		—
Insured		655,948		54,408	$	5,631,914

These amounts include a dividends payable timing difference of $1,138,826 and $397,112 as of April 30, 2003 to the High Income Series and Insured Series, respectively.

The United States federal income tax basis of the Series’ investments and the net unrealized appreciation as of October 31, 2003 were as follows:

Series	Tax Basis		Appreciation		Depreciation		Total Net Unrealized Appreciation/ (Depreciation)
High Income	$	757,034,367	$	35,132,898	$	50,807,385	$	(15,674,487	)
Insured		315,839,266		20,446,850		351,229		20,095,621

The difference between book basis and tax basis was attributable to the difference in the treatment of discount amortization for book and tax purposes.

Dryden Municipal Bond Fund 47

Notes to Financial Statements

Cont’d

Note 6. Capital

The High Income Series and Insured Series offer Class A, Class B, Class C and Class Z shares. Class A shares are sold with a front-end sales charge of up to 3%. Class B shares are sold with a contingent deferred sales charge which declines from 5% to zero depending on the period of time the shares are held. Class C shares are sold with a front-end sales charge of 1% and a contingent deferred sales charge of 1% during the first 18 months. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. A special exchange privilege is also available for shareholders who qualify to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.

The Fund has authorized an unlimited number of shares of beneficial interest of each class at $.01 par value per share. Transactions in shares of beneficial interest were as follows:

	High Income Series Class A					Insured Series Class A
Six Months Ended October 31, 2003	Shares		Amount			Shares		Amount
Shares sold	2,243,609		$	22,458,822		1,179,494		$	13,473,024
Shares issued in reinvestment of dividends and distributions	580,780			5,855,721		280,610			3,226,963
Shares reacquired	(5,069,636	)		(50,921,610	)	(2,673,915	)		(30,530,379	)
Net increase (decrease) in shares outstanding before conversion	(2,245,247	)		(22,607,067	)	(1,213,811	)		(13,830,392	)
Shares issued upon conversion from Class B	1,249,378			12,664,825		350,536			4,101,592
Net increase (decrease) in shares outstanding	(995,869	)	$	(9,942,242	)	(863,275	)	$	(9,728,800	)

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	High Income Series Class A					Insured Series Class A
Year Ended April 30, 2003	Shares		Amount			Shares		Amount
Shares sold	3,121,105		$	31,490,883		2,622,924		$	29,810,727
Shares issued in reinvestment of dividends and distributions	1,257,285			12,663,001		588,736			6,681,027
Shares reacquired	(9,031,671	)		(91,022,647	)	(3,309,260	)		(37,601,848	)
Net increase (decrease) in shares outstanding before conversion	(4,653,281	)		(46,868,763	)	(97,600	)		(1,110,094	)
Shares issued upon conversion from Class B	3,385,726			34,236,561		782,413			8,923,247
Net increase (decrease) in shares outstanding	(1,267,555	)	$	(12,632,202	)	684,813		$	7,813,153
	High Income Series Class B					Insured Series Class B
Six Months Ended October 31, 2003	Shares		Amount			Shares		Amount
Shares sold	524,182		$	5,309,810		431,967		$	4,981,000
Shares issued in reinvestment of dividends and distributions	230,712			2,326,613		56,809			654,068
Shares reacquired	(1,804,867	)		(18,157,065	)	(486,225	)		(5,551,042	)
Net increase (decrease) in shares outstanding before conversion	(1,049,973	)		(10,520,642	)	2,551			84,026
Shares issued upon conversion into Class A	(1,249,378	)		(12,664,825	)	(350,236	)		(4,101,592	)
Net increase (decrease) in shares outstanding	(2,299,351	)	$	(23,185,467	)	(347,685	)	$	(4,017,566	)
	High Income Series Class B					Insured Series Class B
Year Ended April 30, 2003	Shares		Amount			Shares		Amount
Shares sold	2,018,009		$	20,355,002		1,694,767		$	19,296,613
Shares issued in reinvestment of dividends and distributions	549,975			5,540,680		122,602			1,392,373
Shares reacquired	(3,707,260	)		(37,355,609	)	(771,419	)		(8,779,499	)
Net increase (decrease) in shares outstanding before conversion	(1,139,276	)		(11,459,927	)	1,045,950			11,909,487
Shares issued upon conversion into Class A	(3,384,862	)		(34,236,561	)	(781,727	)		(8,923,247	)
Net increase (decrease) in shares outstanding	(4,524,138	)	$	(45,696,488	)	264,223		$	2,986,240

Dryden Municipal Bond Fund 49

Notes to Financial Statements

Cont’d

	High Income Series Class C					Insured Series Class C
Six Months Ended October 31, 2003	Shares		Amount			Shares		Amount
Shares sold	120,948		$	1,223,314		70,950		$	827,894
Shares issued in reinvestment of dividends and distributions	34,843			351,348		8,821			101,492
Shares reacquired	(271,711	)		(2,734,520	)	(97,461	)		(1,129,716	)
Net increase (decrease) in shares outstanding	(115,920	)	$	(1,159,858	)	(17,690	)	$	(200,330	)
	High Income Series Class C					Insured Series Class C
Year Ended April 30, 2003	Shares		Amount			Shares		Amount
Shares sold	692,038		$	6,980,526		296,896		$	3,370,356
Shares issued in reinvestment of dividends and distributions	71,983			725,088		16,363			185,966
Shares reacquired	(610,122	)		(6,161,288	)	(166,089	)		(1,884,519	)
Net increase (decrease) in shares outstanding	153,899		$	1,544,326		147,170		$	1,671,803
	High Income Series Class Z					Insured Series Class Z
Six Months Ended October 31, 2003	Shares		Amount			Shares		Amount
Shares sold	605,233		$	6,137,384		186,510		$	2,125,089
Shares issued in reinvestment of dividends and distributions	27,953			281,611		8,079			93,050
Shares reacquired	(526,136	)		(5,276,371	)	(369,877	)		(4,267,452	)
Net increase (decrease) in shares outstanding	107,050		$	1,142,624		(175,288	)	$	(2,049,313	)
	High Income Series Class Z					Insured Series Class Z
Year Ended April 30, 2003	Shares		Amount			Shares		Amount
Shares sold	1,376,787		$	13,878,193		1,029,651		$	11,706,301
Shares issued in reinvestment of dividends and distributions	40,192			404,236		16,341			185,589
Shares reacquired	(592,571	)		(5,977,427	)	(636,436	)		(7,202,157	)
Net increase (decrease) in shares outstanding	824,408		$	8,305,002		409,556		$	4,689,733

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Financial Highlights

OCTOBER 31, 2003 SEMIANNUAL REPORT

Dryden Municipal Bond Fund

High Income Series

Insured Series

Financial Highlights

(Unaudited)

	Class A
	Six Months Ended October 31, 2003
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	10.11
Income From Investment Operations
Net investment income		.27
Net realized and unrealized gain (loss) on investment transactions		(.06	)
Total from investment operations		.21
Less Dividends:
Dividends from net investment income		(.27	)
Net asset value, end of period	$	10.05
Total Return(a):		2.07	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	478,339
Average net assets (000)	$	485,430
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees		.87	%(c)
Expenses, excluding distribution and service (12b-1) fees		.62	%(c)
Net investment income		5.28	%(c)
For Class A, B, C and Z shares:
Portfolio turnover rate		50	%(d)

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized.

(b) Net of management fee waiver.

(c) Annualized.

(d) Not annualized.

* Effective May 1, 2001, the Prudential Municipal Bond Fund/High Income Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income per share by $.01 and decrease net realized and unrealized gain (loss) per share by $.01 and increase the ratio of net investment income from 5.84% to 5.87%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation.

See Notes to Financial Statements.

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Class A
Year Ended April 30,
2003			2002*			2001			2000			1999
$	10.06		$	10.11		$	10.22		$	11.21		$	11.31
	.56			.61			.61			.63			.63	(b)
	.04			(.06	)		(.12	)		(.99	)		(.10	)
	.60			.55			.49			(.36	)		.53
	(.55	)		(.60	)		(.60	)		(.63	)		(.63	)
$	10.11		$	10.06		$	10.11		$	10.22		$	11.21
	6.15	%		5.53	%		4.94	%		(3.31	)%		4.96	%
$	491,218		$	501,501		$	522,556		$	503,874		$	514,952
$	496,597		$	517,930		$	527,117		$	506,888		$	474,901
	.85	%		.84	%		.84	%		.82	%		.66	%(b)
	.60	%		.59	%		.59	%		.57	%		.51	%(b)
	5.53	%		5.87	%		6.05	%		5.86	%		5.73	%(b)
	88	%		58	%		46	%		27	%		16	%

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 53

Financial Highlights

(Unaudited) Cont’d

	Class B
	Six Months Ended October 31, 2003
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	10.11
Income From Investment Operations:
Net investment income		.26
Net realized and unrealized gain (loss) on investment transactions		(.06	)
Total from investment operations		.20
Less Dividends:
Dividends from net investment income		(.26	)
Net asset value, end of period	$	10.05
Total Return(a):		1.95	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	216,790
Average net assets (000)	$	230,321
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees		1.12	%(c)
Expenses, excluding distribution and service (12b-1) fees		.62	%(c)
Net investment income		5.10	%(c)

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized.

(b) Net of management fee waiver.

(c) Annualized.

* Effective May 1, 2001, the Prudential Municipal Bond Fund/High Income Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income and decrease net realized and unrealized gains per share by less than $.005 and increase the ratio of net investment income from 5.59% to 5.62%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation.

See Notes to Financial Statements.

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Class B
Year Ended April 30,
2003			2002*			2001			2000			1999
$	10.06		$	10.11		$	10.22		$	11.21		$	11.31
	.54			.58			.59			.60			.59	(b)
	.04			(.06	)		(.13	)		(.99	)		(.10	)
	.58			.52			.46			(.39	)		.49
	(.53	)		(.57	)		(.57	)		(.60	)		(.59	)
$	10.11		$	10.06		$	10.11		$	10.22		$	11.21
	5.88	%		5.27	%		4.68	%		(3.55	)%		4.59	%
$	241,311		$	285,581		$	324,299		$	457,841		$	649,706
$	264,067		$	307,192		$	375,632		$	559,879		$	666,885
	1.10	%		1.09	%		1.09	%		1.07	%		1.01	%(b)
	.60	%		.59	%		.59	%		.57	%		.51	%(b)
	5.31	%		5.62	%		5.78	%		5.59	%		5.38	%(b)

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 55

Financial Highlights

(Unaudited) Cont’d

	Class C
	Six Months Ended October 31, 2003
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	10.11
Income From Investment Operations
Net investment income		.25
Net realized and unrealized gain (loss) on investment transactions		(.07	)
Total from investment operations	��	.18
Less Dividends:
Dividends from net investment income		(.24	)
Net asset value, end of period	$	10.05
Total Return(a):		1.82	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	26,983
Average net assets (000)	$	27,636
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees		1.37	%(c)
Expenses, excluding distribution and service (12b-1) fees		.62	%(c)
Net investment income		4.79	%(c)

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized.

(b) Net of management fee waiver.

(c) Annualized.

* Effective May 1, 2001, the Prudential Municipal Bond Fund/High Income Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income and decrease net realized and unrealized gains per share by less than $.005 and increase the ratio of net investment income from 5.35% to 5.38%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation.

See Notes to Financial Statements.

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Class C
Year Ended April 30,
2003			2002*			2001			2000			1999
$	10.06		$	10.11		$	10.22		$	11.21		$	11.31
	.51			.55			.56			.57			.57	(b)
	.04			(.05	)		(.12	)		(.99	)		(.10	)
	.55			.50			.44			(.42	)		.47
	(.50	)		(.55	)		(.55	)		(.57	)		(.57	)
$	10.11		$	10.06		$	10.11		$	10.22		$	11.21
	5.62	%		5.00	%		4.42	%		(3.79	)%		4.33	%
$	28,313		$	26,619		$	27,263		$	30,061		$	32,939
$	27,121		$	27,814		$	28,028		$	32,762		$	26,114
	1.35	%		1.34	%		1.34	%		1.32	%		1.26	%(b)
	.60	%		.59	%		.59	%		.57	%		.51	%(b)
	5.04	%		5.38	%		5.55	%		5.36	%		5.15	%(b)

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 57

Financial Highlights

(Unaudited) Cont’d

	Class Z
	Six Months Ended October 31, 2003
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	10.10
Income From Investment Operations:
Net investment income		.28
Net realized and unrealized gain (loss) on investment transactions		(.06	)
Total from investment operations		.22
Less Dividends:
Dividends from net investment income		(.28	)
Net asset value, end of period	$	10.04
Total Return(a):		2.20	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	16,347
Average net assets (000)	$	16,480
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees		.62	%(c)
Expenses, excluding distribution and service (12b-1) fees		.62	%(c)
Net investment income		5.48	%(c)

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized.

(b) Net of management fee waiver.

(c) Annualized.

* Effective May 1, 2001, the Prudential Municipal Bond Fund/High Income Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income per share by $.01 and decrease net realized and unrealized gain (loss) per share by $.01 and increase the ratio of net investment income from 6.11% to 6.14%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation.

See Notes to Financial Statements.

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Class Z
Year Ended April 30,
2003			2002*			2001			2000			1999
$	10.05		$	10.10		$	10.21		$	11.20		$	11.30
	.59			.63			.64			.65			.65	(b)
	.04			(.06	)		(.13	)		(.99	)		(.10	)
	(.58	)		.57			.51			(.34	)		.55
	(.58	)		(.62	)		(.62	)		(.65	)		(.65	)
$	10.10		$	10.05		$	10.10		$	10.21		$	11.20
	6.41	%		5.79	%		5.19	%		(3.07	)%		5.11	%
$	15,361		$	7,000		$	5,966		$	7,802		$	13,839
$	10,813		$	6,368		$	7,182		$	10,493		$	13,648
	.60	%		.59	%		.59	%		.57	%		.51	%(b)
	.60	%		.59	%		.59	%		.57	%		.51	%(b)
	5.78	%		6.14	%		6.32	%		6.07	%		5.89	%(b)

See Notes to Financial Statements.

Dryden Municipal Bond Fund/High Income Series 59

Financial Highlights

(Unaudited) Cont’d

	Class A
	Six Months Ended
	October 31, 2003
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	11.59
Income From Investment Operations:
Net investment income		.23
Net realized and unrealized gain (loss) on investment transactions		(.18	)
Total from investment operations		.05
Less Dividends and Distributions:
Dividends from net investment income		(.23	)
Distributions in excess of net investment income		—
Distributions from net realized capital gains		—
Total dividends and distributions		(.23	)
Net asset value, end of period	$	11.41
Total Return(a):		.42	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	266,800
Average net assets (000)	$	276,327
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees		.89	%(b)
Expenses, excluding distribution and service (12b-1) fees		.64	%(b)
Net investment income		3.95	%(b)
For Class A, B, C and Z shares:
Portfolio turnover rate		38	%(c)

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized.

(b) Annualized.

(c) Not annualized.

* Effective May 1, 2001, the Prudential Municipal Bond Fund/Insured Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income and decrease net realized and unrealized gains per share by less than $.005 and increase the ratio of net investment income from 4.62% to 4.64%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation.

See Notes to Financial Statements.

60 Visit our website at www.jennisondryden.com

Class A
Year Ended April 30,
2003			2002*			2001			2000			1999
$	11.08		$	10.91		$	10.40		$	11.18		$	11.05
	.49			.52			.51			.51			.53
	.51			.17			.51			(.78	)		.23
	1.00			.69			1.02			(.27	)		.76
	(.49	)		(.52	)		(.51	)		(.51	)		(.53	)
	—			—			—			—			(.01	)
	—			—			—			—			(.09	)
	(.49	)		(.52	)		(.51	)		(.51	)		(.63	)
$	11.59		$	11.08		$	10.91		$	10.40		$	11.18
	9.17	%		6.38	%		9.90	%		(2.38	)%		6.88	%
$	281,077		$	261,227		$	265,718		$	238,690		$	251,300
$	272,608		$	269,146		$	254,718		$	243,756		$	240,652
	.88	%		.87	%		.89	%		.88	%		.75	%
	.63	%		.62	%		.64	%		.63	%		.60	%
	4.35	%		4.64	%		4.72	%		4.78	%		4.61	%
	59	%		22	%		38	%		26	%		15	%

See Notes to Financial Statements.

Dryden Municipal Bond Fund/Insured Series 61

Financial Highlights

(Unaudited) Cont’d

	Class B
	Six Months Ended October 31, 2003
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	11.60
Income From Investment Operations:
Net investment income		.22
Net realized and unrealized gain (loss) on investment transactions		(.19	)
Total from investment operations		.03
Less Dividends and Distributions:
Dividends from net investment income		(.21	)
Distributions in excess of net investment income		—
Distributions from net realized capital gains		—
Total dividends and distributions		(.21	)
Net asset value, end of period	$	11.42
Total Return(a):		.29	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	55,797
Average net assets (000)	$	58,412
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees		1.14	%(b)
Expenses, excluding distribution and service (12b-1) fees		.64	%(b)
Net investment income		3.70	%(b)

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized.

(b) Annualized.

* Effective May 1, 2001, the Prudential Municipal Bond Fund/Insured Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income and decrease net realized and unrealized gains per share by less than $.005 and increase the ratio of net investment income from 4.38% to 4.40%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation.

See Notes to Financial Statements.

62 Visit our website at www.jennisondryden.com

Class B
Year Ended April 30,
2003			2002*			2001			2000			1999
$	11.09		$	10.92		$	10.41		$	11.19		$	11.06
	.47			.49			.48			.48			.48
	.50			.17			.51			(.78	)		.23
	.97			.66			.99			(.30	)		.71
	(.46	)		(.49	)		(.48	)		(.48	)		(.48	)
	—			—			—			—			(.01	)
	—			—			—			—			(.09	)
	(.46	)		(.49	)		(.48	)		(.48	)		(.58	)
$	11.60		$	11.09		$	10.92		$	10.41		$	11.19
	8.90	%		6.12	%		9.63	%		(2.62	)%		6.50	%
$	60,724		$	55,145		$	55,459		$	91,989		$	175,520
$	58,003		$	54,136		$	70,084		$	131,052		$	208,775
	1.13	%		1.12	%		1.14	%		1.13	%		1.10	%
	.63	%		.62	%		.64	%		.63	%		.60	%
	4.10	%		4.40	%		4.48	%		4.51	%		4.25	%

See Notes to Financial Statements.

Dryden Municipal Bond Fund/Insured Series 63

Financial Highlights

(Unaudited) Cont’d

	Class C
	Six Months Ended
	October 31, 2003
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	11.60
Income From Investment Operations:
Net investment income		.20
Net realized and unrealized gain (loss) on investment transactions		(.18	)
Total from investment operations		.02
Less Dividends and Distributions:
Dividends from net investment income		(.20	)
Distributions in excess of net investment income		—
Distributions from net realized capital gains		—
Total dividends and distributions		(.20	)
Net asset value, end of period	$	11.42
Total Return(a):		.17	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	8,122
Average net assets (000)	$	8,417
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees		1.39	%(b)
Expenses, excluding distribution and service (12b-1) fees		.64	%(b)
Net investment income		3.45	%(b)

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized.

(b) Annualized.

* Effective May 1, 2001, the Prudential Municipal Bond Fund/Insured Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income per share by $.01, decrease net realized and unrealized gains per share by $.01 and increase the ratio of net investment income from 4.14% to 4.17%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation.

See Notes to Financial Statements.

64 Visit our website at www.jennisondryden.com

Class C
Year Ended April 30,
2003			2002*			2001			2000			1999
$	11.09		$	10.92		$	10.41		$	11.19		$	11.06
	.44			.47			.45			.46			.45
	.50			.16			.51			(.78	)		.23
	.94			.63			.96			(.32	)		.68
	(.43	)		(.46	)		(.45	)		(.46	)		(.45	)
	—			—			—			—			(.01	)
	—			—			—			—			(.09	)
	(.43	)		(.46	)		(.45	)		(.46	)		(.55	)
$	11.60		$	11.09		$	10.92		$	10.41		$	11.19
	8.63	%		5.86	%		9.37	%		(2.86	)%		6.24	%
$	8,457		$	6,456		$	4,085		$	2,949		$	2,708
$	7,559		$	5,320		$	3,413		$	2,988		$	1,856
	1.38	%		1.37	%		1.39	%		1.38	%		1.35	%
	.63	%		.62	%		.64	%		.63	%		.60	%
	3.85	%		4.17	%		4.23	%		4.29	%		4.03	%

See Notes to Financial Statements.

Dryden Municipal Bond Fund/Insured Series 65

Financial Highlights

(Unaudited) Cont’d

	Class Z
	Six Months Ended October 31, 2003
Per Share Operating Performance:
Net Asset Value, Beginning Of Period	$	11.58
Income From Investment Operations:
Net investment income		.24
Net realized and unrealized gain (loss) on investment transactions		(.18	)
Total from investment operations		.06
Less Dividends and Distributions:
Dividends from net investment income		(.24	)
Distributions in excess of net investment income		—
Distributions from net realized capital gains		—
Total dividends and distributions		(.24	)
Net asset value, end of period	$	11.40
Total Return(a):		.54	%
Ratios/Supplemental Data:
Net assets, end of period (000)	$	7,036
Average net assets (000)	$	7,873
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees		.64	%(b)
Expenses, excluding distribution and service (12b-1) fees		.64	%(b)
Net investment income		4.21	%(b)

(a) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized.

(b) Annualized.

* Effective May 1, 2001, the Prudential Municipal Bond Fund/Insured Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income per share by $.01, decrease net realized and unrealized gains per share by $.01 and increase the ratio of net investment income from 4.88% to 4.91%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation.

See Notes to Financial Statements.

66 Visit our website at www.jennisondryden.com

Class Z
Year Ended April 30,
2003			2002*			2001			2000			1999
$	11.07		$	10.91		$	10.40		$	11.18		$	11.05
	.52			.55			.53			.54			.54
	.50			.15			.51			(.78	)		.23
	1.02			.70			1.04			(.24	)		.77
	(.51	)		(.54	)		(.53	)		(.54	)		(.54	)
	—			—			—			—			(.01	)
	—			—			—			—			(.09	)
	(.51	)		(.54	)		(.53	)		(.54	)		(.64	)
$	11.58		$	11.07		$	10.91		$	10.40		$	11.18
	9.45	%		6.55	%		10.17	%		(2.13	)%		7.04	%
$	9,179		$	4,238		$	2,182		$	1,429		$	4,312
$	6,605		$	3,152		$	1,993		$	1,960		$	3,523
	.63	%		.62	%		.64	%		.63	%		.60	%
	.63	%		.62	%		.64	%		.63	%		.60	%
	4.61	%		4.91	%		4.99	%		4.94	%		4.77	%

See Notes to Financial Statements.

Dryden Municipal Bond Fund/Insured Series 67

Supplemental Proxy Information

(Unaudited)

A special meeting of the Fund’s shareholders was held on July 17, 2003. At such meeting the shareholders approved the following proposals:

1.* To approve the election of nine (9) trustees to the Board of Trustees, as follows:

• David E.A. Carson

• Robert F. Gunia

• Robert E. La Blanc

• Douglas H. McCorkindale

• Stephen P. Munn

• Richard A. Redeker

• Judy A. Rice

• Robin B. Smith

• Stephen Stoneburn

• Clay T. Whitehead

The results of the proxy solicitation on the preceding matter were:

High Yield Income Series

Matter	Votes For	Votes Against	Votes Withheld	Abstentions
David E.A. Carson	69,615,416	—	1,198,800	—
Robert F. Gunia	69,650,532	—	1,163,414	—
Robert E. La Blanc	69,615,436	—	1,198,510	—
Douglas H. McCorkindale	69,601,254	—	1,212,692	—
Stephen P. Munn	69,621,163	—	1,192,783	—
Richard A. Redeker	69,639,001	—	1,174,945	—
Judy A. Rice	69,629,867	—	1,184,079	—
Robin B. Smith	69,589,135	—	1,224,811	—
Stephen Stoneburn	69,651,927	—	1,162,019	—
Clay T. Whitehead	69,658,261	—	1,155,685	—

68 Visit our website at www.jennisondryden.com

Supplemental Proxy Information

(Unaudited) Cont’d.

Insured Series

Matter	Votes For	Votes Against	Votes Withheld	Abstentions
David E.A. Carson	15,628,475	—	496,675	—
Robert F. Gunia	15,624,078	—	501,072	—
Robert E. La Blanc	15,599,148	—	526,002	—
Douglas H. McCorkindale	15,615,864	—	509,286	—
Stephen P. Munn	15,628,443	—	496,707	—
Richard A. Redeker	15,635,749	—	489,401	—
Judy A. Rice	15,623,553	—	501,597	—
Robin B. Smith	15,621,339	—	503,811	—
Stephen Stoneburn	15,634,976	—	490,174	—
Clay T. Whitehead	15,633,784	—	491,366	—

2.* To permit the Manager to enter into, or make material changes to, Subadvisory Agreement without shareholder approval.

Matter	Votes For	Votes Against	Abstentions
High Yield Income Series	34,118,778	5,023,517	1,722,947
Insured Series	11,770,784	1,366,042	662,272

3.* To permit an amendment to the Management Contract between PI and the Company on behalf of the Fund.

Matter	Votes For	Votes Against	Abstentions
High Yield Income Series	67,233,199	2,323,260	1,257,487
Insured Series	14,666,367	848,460	610,323

4A* To approve changes to fundamental investment restrictions or policies, relating to the Fund: diversification.

Matter	Votes For	Votes Against	Abstentions
High Yield Income Series	35,776,956	3,364,134	1,724,152
Insured Series	12,385,967	808,390	604,741

4B* To approve changes to fundamental investment restrictions or policies, relating to the Fund: issuing senior securities, borrowing money or pledging assets.

Matter	Votes For	Votes Against	Abstentions
High Yield Income Series	35,085,261	3,957,858	1,822,123
Insured Series	12,119,768	962,597	716,733

Dryden Municipal Bond Fund 69

Supplemental Proxy Information

(Unaudited) Cont’d.

4C* To approve changes to fundamental investment restrictions or policies, relating to the Fund: buying and selling real estate.

Matter	Votes For	Votes Against	Abstentions
High Yield Income Series	35,788,107	3,328,074	1,749,061
Insured Series	12,306,721	894,494	597,883

4D* To approve changes to fundamental investment restrictions or policies, relating to the Fund: buying and selling commodities and commodity contracts.

Matter	Votes For	Votes Against	Abstentions
High Yield Income Series	35,469,289	3,479,141	1,916,812
Insured Series	12,234,900	915,955	648,243

4E* To approve changes to fundamental investment restrictions or policies, relating to the Fund: concentration.

Matter	Votes For	Votes Against	Abstentions
High Yield Income Series	35,934,933	3,170,639	1,759,670
Insured Series	12,354,006	786,167	658,925

4F* To approve changes to fundamental investment restrictions or policies, relating to the Fund: making loans.

Matter	Votes For	Votes Against	Abstentions
High Yield Income Series	35,200,805	3,890,585	1,733,852
Insured Series	12,130,727	1,040,633	627,738

4G* To approve changes to fundamental investment restrictions or policies, relating to the Fund: other investment restrictions, including investing in securities of other investment companies.

Matter	Votes For	Votes Against	Abstentions
High Yield Income Series	35,511,358	3,552,853	1,801,031
Insured Series	12,280,629	862,187	656,282

5.** To approve amendments to the Company: Declaration of Trust.

Matter	Votes For	Votes Against	Abstentions
High Yield Income Series	40,285,703	3,906,148	2,040,977
Insured Series	18,991,042	1,331,454	1,044,220

* Approved.

** Not approved.

70 Visit our website at www.jennisondryden.com

n MAIL	n TELEPHONE	n WEBSITE
Gateway Center Three 100 Mulberry Street Newark, NJ 07102	(800) 225-1852	www.jennisondryden.com

TRUSTEES

David E.A. Carson•Robert F. Gunia•Robert E. La Blanc•Douglas H. McCorkindale• Richard A. Redeker•Judy A. Rice•Robin B. Smith•Stephen D. Stoneburn•Clay T. Whitehead

OFFICERS

Judy A. Rice, President•Robert F. Gunia, Vice President•Grace C. Torres, Treasurer and Principal
Financial and Accounting Officer•Marguerite E.H. Morrison, Chief Legal Officer and Assistant Secretary•
Deborah A. Docs, Secretary•Maryanne Ryan, Anti-Money Laundering Compliance Officer

MANAGER	Prudential Investments LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102
INVESTMENT ADVISER	Prudential Investment Management, Inc.	Gateway Center Two 100 Mulberry Street Newark, NJ 07102
DISTRIBUTOR	Prudential Investment Management Services LLC	Gateway Center Three 14th Floor 100 Mulberry Street Newark, NJ 07102
CUSTODIAN	State Street Bank and Trust Company	One Heritage Drive North Quincy, MA 02171
TRANSFER AGENT	Prudential Mutual Fund Services LLC	PO Box 8098 Philadelphia, PA 19101
INDEPENDENT AUDITORS	KPMG LLP	757 Third Avenue New York, NY 10017
FUND COUNSEL	Shearman & Sterling LLP	599 Lexington Avenue New York, NY 10022

Dryden Municipal Bond Fund/High Income Series
Share Class	A	B	C	Z
Nasdaq	PRHAX	PMHYX	PHICX	PHIZX
CUSIP	262467103	262467202	262467301	262467400
Dryden Municipal Bond Fund/Insured Series
Share Class	A	B	C	Z
Nasdaq	PMIAX	PMINX	PMICX	PMIZX
CUSIP	262467509	262467608	262467707	262467806

The views expressed in this report and information about the Series’ portfolio holdings are for the period covered by this report and are subject to change thereafter. The accompanying financial statements as of October 31, 2003 were not audited and, accordingly, no auditors’ opinion is expressed on them.

Mutual Funds:

ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE

Dryden Municipal Bond Fund/High Income Series
	Share Class	A	B	C	Z
	Nasdaq	PRHAX	PMHYX	PHICX	PHIZX
	CUSIP	262467103	262467202	262467301	262467400
Dryden Municipal Bond Fund/Insured Series
	Share Class	A	B	C	Z
	Nasdaq	PMIAX	PMINX	PMICX	PMIZX
	CUSIP	262467509	262467608	262467707	262467806

MF133E2 IFS-AO86523

Item 2 – Code of Ethics – Not required as this is not an annual filing.

Item 3 – Audit Committee Financial Expert –

Stephen Munn had been designated as the Fund’s Audit Committee Financial Expert, however, he resigned as a Director of the Fund effective November 30, 2003 and the Fund’s board is in the process of selecting a new designee.

Item 4 – Principal Accountant Fees and Services – Not required in this filing

Item 5 – Reserved

Item 6 – Reserved

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not required in this filing

Item 8 – Reserved

Item 9 – Controls and Procedures

(a) It is the conclusion of the registrant��s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no significant changes in the registrant’s internal controls 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

(a) Code of Ethics – Not applicable with semi-annual filing

(b) Certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act – Attached hereto

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)	Dryden Municipal Bond Fund
By (Signature and Title)*	/s/ Deborah A. Docs
	Deborah A. Docs
	Secretary
Date	December 22, 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 (Signature and Title)*	/s/ Judy A. Rice
	Judy A. Rice
	President and Principal Executive Officer
Date	December 22, 2003
By (Signature and Title)*	/s/ Grace C. Torres
	Grace C. Torres
	Treasurer and Principal Financial Officer
Date	December 22, 2003

^* Print the name and title of each signing officer under his or her signature.