NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 ALLIANCE BOND FUND CORPORATE BOND PORTFOLIO
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Bond Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940 as a diversified,
open-end management investment company. The Fund, which is a Maryland corporation, operates as a series
company currently comprised of three portfolios: the Corporate Bond Portfolio, the Quality Bond Portfolio and
the U.S. Government Portfolio. The Quality Bond Portfolio had not commenced operations as of June 30, 1999,
but will be commencing operations on July 1, 1999. Each series is considered to be a separate entity for financial
reporting and tax purposes. The accompanying financial statements and notes include the operations of the
Corporate Bond Portfolio (the "Portfolio") only. The Portfolio offers three classes of shares:
Class A, Class B and Class C shares. Class A shares are sold with a front-end sales charge of up to 4.25% for
purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares
redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class B
shares are currently sold with a contingent deferred sales charge which declines from 3% to zero depending on
the period of time the shares are held. Class B shares will automatically convert to Class A shares six years after
the end of the calendar month of purchase. Class C shares are subject to a contingent deferred sales charge of
1% on redemptions made within the first year after purchase. All three classes of shares have identical voting,
dividend, liquidation and other rights, except that each class bears different distribution expenses and has
exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in
conformity with generally accepted accounting principles which require management to make certain estimates
and assumptions that affect the reported amounts of asse