Notes to Financial Statements
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. The transfer agent fees and expenses in the Statement of Operations include
certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Fund pays networking fees to affiliated and unaffiliated broker/dealers, including fees relating to the services of
First Clearing, LLC (“First Clearing”), affiliate of PI. These networking fees are payments made to broker/dealers that
clear mutual fund transactions through a national clearing system. For the six-month period ended February 29, 2008,
the Fund incurred approximately $38,200 in total networking fees, of which $19,800 was paid to First Clearing. These
amounts are included in transfer agent’s fees and expenses on the Statement of Operations.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments, for the six months ended
February 29, 2008, aggregated $142,463,835 and $184,656,656, respectively.
Note 5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of
February 29, 2008 were as follows:
The differences between book and tax basis are primarily attributable to differences in the treatment of accreting
market discount and premium amortization and municipal tender option bond transactions for book and tax purposes.
Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years and
has concluded that as of February 29, 2008, no provision for income tax would be required in the Fund’s financial
statements. The Fund’s federal and state income and federal excise tax returns for tax years for which