NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Corporate High Yield Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940 as a
diversified, closed-end management investment company. The Fund determines and makes available for
publication the net asset value of its Common Stock on a weekly basis. The Fund's Common Stock is listed on
the New York Stock Exchange under the symbol COY.
(a) Valuation of investments--Portfolio securities are valued on the basis of prices furnished by one or more
pricing services, which determine prices for normal, institutional-size trading units. In certain circumstances,
portfolio securities are valued at the last sale price on the exchange that is the primary market for such securities,
or the last quoted bid price for those securities for which the over-the-counter market is the primary market or
for listed securities in which there were no sales during the day. The value of interest rate swaps, caps, and floors
is determined in accordance with a formula and then confirmed periodically by obtaining a bank quotation.
Positions in options are valued at the last sale price on the market where any such option is principally traded.
Obligations with remaining maturities of sixty days or less are valued at amortized cost, which approximates
market value. Securities for which there exist no price quotations or valuations and all other assets are valued at
fair value as determined in good faith by or on behalf of the Board of Directors of the Fund.
(b) Derivative financial instruments--The Fund may engage in various portfolio strategies to seek to increase its
return by hedging its portfolio against adverse movements in the debt markets. Losses may arise due to changes
in the value of the contract or if the counterparty does not perform under the contract.
* Financial futures contracts--The Fund may purchase or sell interest rate futures contracts and options on such
futures contracts for the purpose of hedging the market