Notes to Financial Statements (Unaudited) PRUDENTIAL MUNICIPAL BOND FUND
Prudential Municipal Bond Fund (the '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.