NOTES TO FINANCIAL STATEMENTS PRUDENTIAL HIGH YIELD FUND, INC.
Prudential High Yield Fund, Inc. (the 'Fund') is registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The primary investment objective of the Fund is to
maximize current income through investment in a diversified portfolio of high yield fixed-income securities which,
in the opinion of the Fund's investment adviser, do not subject the Fund to unreasonable risks. As a secondary
investment objective, the Fund will seek capital appreciation but only when consistent with its primary objective.
Lower rated or unrated (i.e., high yield) securities are more likely to react to developments affecting market risk
(general market liquidity) and credit risk (an issuer's inability to meet principal and interest payments on its
obligations) than are more highly rated securities, which react primarily to movements in the general level of
interest rates. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected
by economic developments in a specific industry or region.
NOTE 1. ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the Fund in the preparation of its
Security Valuation: Portfolio securities 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 prices provided by
principal market makers and pricing agents. Any security for which the primary market is on an exchange is
valued at the last sales price on such exchange on the day of valuation or, if there was no sale on such day, the
last bid price quoted on such day. Securities issued in private placements are valued at the bid price or the mean
between the bid and asked prices, if available, provided by principal market makers. Any security for which a
reliable market quotation is unavailable is valued at fair value