N-CSR 1 form980.htm SEMI-ANNUAL REPORT form980
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT 
INVESTMENT COMPANIES

Investment Company Act file number    811-3726 

DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC. 
(Exact name of Registrant as specified in charter)

c/o The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
(Address of principal executive offices)    (Zip code) 

Michael A. Rosenberg, Esq.
200 Park Avenue
New York, New York 10166
(Name and address of agent for service) 

Registrant's telephone number, including area code:    (212) 922-6000 

Date of fiscal year end:    5/31 

Date of reporting period:    11/30/2007 

FORM N-CSR

Item 1.    Reports to Stockholders. 

Save time. Save paper. View your next shareholder report online as soon as it’s available. Log into www.dreyfus.com and sign up for Dreyfus eCommunications. It’s simple and only takes a few minutes.

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

    Contents 
 
    THE FUND 
2    A Letter from the CEO 
3    Discussion of Fund Performance 
6    Understanding Your Fund’s Expenses 
6    Comparing Your Fund’s Expenses 
    With Those of Other Funds 
7    Statement of Investments 
21    Statement of Assets and Liabilities 
22    Statement of Operations 
23    Statement of Changes in Net Assets 
24    Financial Highlights 
25    Notes to Financial Statements 
32    Information About the Review and Approval 
    of the Fund’s Management Agreement 
    FOR MORE INFORMATION 
    Back Cover 

The Fund

Dreyfus New York 
Tax Exempt Bond Fund, Inc. 

A LETTER FROM THE CEO

Dear Shareholder:

We are pleased to present this semiannual report for Dreyfus New York Tax Exempt Bond Fund, Inc., covering the six-month period from June 1, 2007, through November 30, 2007.

Volatility has returned to the municipal bond market.The past few months have been filled with greater swings in security valuations than we’ve seen in several years, as the economic cycle matured and a credit crisis spread from the sub-prime mortgage sector of the taxable bond market to other areas of the financial markets, including municipal bonds. A high degree of leverage within parts of the financial system made these price fluctuations more intense than they otherwise might have been.While we saw few changes in the underlying credit fundamentals of municipal bonds,the tax-exempt market nonetheless suffered bouts of difficult liquidity.

In our view, these developments signaled a shift to a new phase of the credit cycle in which the price of risk has increased. Although the housing downturn and sub-prime turmoil may persist, fiscal conditions so far have remained sound for most municipal bond issuers, and lower short-term interest rates from the Federal Reserve Board may help forestall a technical recession.Turning points such as this one may be a good time to review your portfolio with your financial advisor, who can help you consider whether to reposition your investments in this changing market environment.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s Portfolio Manager.

Thank you for your continued confidence and support.

Thomas F. Eggers 
Chief Executive Officer 
The Dreyfus Corporation 
December 17, 2007 

2

DISCUSSION OF FUND PERFORMANCE

For the period of June 1, 2007, through November 30, 2007, as provided by Joseph Darcy, Portfolio Manager

Fund and Market Performance Overview

Declining U.S. housing values and a credit crisis over the summer of 2007 led to heightened volatility in fixed-income markets, including among municipal bonds, as investors reassessed their attitudes toward risk.The fund’s return lagged that of its benchmark, which is not limited geographically to New York, and which does not reflect fees and expenses like the fund. However, the fund produced a higher return than its Lipper category average, primarily due to the fund’s longstanding emphasis on quality and liquidity.

For the six-month period ended November 30, 2007, Dreyfus New York Tax Exempt Bond Fund achieved a total return of 1.92% .1 The Lehman Brothers Municipal Bond Index, the fund’s benchmark index, achieved a total return of 2.40% for the same period.2 The average total return for all funds reported in the Lipper New York Municipal Debt Funds category was 1.05% .3

The Fund’s Investment Approach

The fund seeks as high a level of current income exempt from federal, New York state and New York city income taxes as is consistent with the preservation of capital. To pursue this goal, the fund normally invests substantially all of its assets in municipal bonds that provide income exempt from federal, New York state and New York city personal income taxes.The dollar-weighted average maturity of the fund’s portfolio normally exceeds 10 years, but the fund may invest without regard to maturity. The fund will invest at least 80% of its assets in investment-grade municipal bonds or the unrated equivalent as determined by Dreyfus. The fund may invest up to 20% of its assets in municipal bonds rated below investment grade ( “junk” bonds) or the unrated equivalent as determined by Dreyfus.

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

We may buy and sell bonds based on credit quality, market outlook and yield potential. In selecting municipal bonds for investment, we may assess the current interest-rate environment and the municipal bond’s potential volatility in different rate environments. We focus on bonds with the potential to offer attractive current income, typically looking for bonds that can provide consistently attractive current yields or that are trading at competitive market prices. A portion of the fund’s assets may be allocated to “discount” bonds, which are bonds that sell at a price below their face value, or to “premium” bonds, which are bonds that sell at a price above their face value.The fund’s allocation either to discount bonds or to premium bonds will change along with our changing views of the current interest-rate and market environment.We also may look to select bonds that are most likely to obtain attractive prices when sold.

Interest Rates Fall Amid Economic and Credit Concerns

After a sustained period of relative stability, market conditions changed dramatically over the summer of 2007 when turmoil in the sub-prime mortgage sector of the taxable bond market spread to other fixed-income sectors.Although we saw little evidence of credit deterioration among municipal bond issuers, the tax-exempt market was affected by selling pressure from highly leveraged hedge funds and other institutional investors, which were forced to sell creditworthy securities to meet redemption requests and margin calls.

Difficult liquidity conditions prompted the Federal Reserve Board to cut the discount rate in August and the federal funds rate in September and October, the first reductions in short-term rates in more than four years.The market generally responded favorably to these moves,enabling municipal bond prices to erase some, but not all, of their earlier declines.

New York was adversely affected by the U.S. housing downturn and the credit crisis, but the state’s fiscal condition generally has been supported by a diverse economy and recent efforts to adopt budgetary and spending controls. However, challenges remain, as recent losses among major Wall Street firms may constrain tax revenues at a time when the state is contending with future budget deficits and a rising debt load.

4

Quality and Liquidity Helped Support Fund Performance

The fund continued to benefit from its seasoned holdings of income-oriented bonds, many of which were purchased with higher coupon rates than are available today. Moreover, our consistent emphasis on higher-quality bonds with strong liquidity characteristics enabled the fund’s holdings to fare relatively well during the downturn. For example, we tended to favor general obligation bonds and securities backed by revenues from essential-services facilities.We maintained the fund’s weighted average maturity in a range that was roughly in line with industry averages, helping it capture the benefits of falling interest rates without assuming unnecessary duration risk.

Because fixed-income markets have remained volatile, we have retained a relatively conservative investment posture, including a focus on higher quality securities with maturities of 20 years or less. Should we see a sustainable improvement in market conditions, we may increase the fund’s weighted average maturity in seeking to capture higher current yields. In the meantime, we believe that maintaining high levels of credit quality and liquidity represent prudent strategies in today’s uncertain investment environment.

December 17, 2007

1    Total return includes reinvestment of dividends and any capital gains paid. Past performance is no 
    guarantee of future results. Share price, yield and investment return fluctuate such that upon 
    redemption, fund shares may be worth more or less than their original cost. Income may be subject 
    to state and local taxes for non-New York residents, and some income may be subject to the federal 
    alternative minimum tax (AMT) for certain investors. Capital gains, if any, are fully taxable. 
2    SOURCE: LIPPER INC. — Reflects reinvestment of dividends and, where applicable, capital 
    gain distributions.The Lehman Brothers Municipal Bond Index is a widely accepted, unmanaged 
    and geographically unrestricted total return performance benchmark for the long-term, investment- 
    grade, tax-exempt bond market. Index returns do not reflect the fees and expenses associated with 
    operating a mutual fund. 
3    Source: Lipper Inc. 

The Fund 5

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus New York Tax Exempt Bond Fund, Inc. from June 1, 2007 to November 30, 2007. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment 
assuming actual returns for the six months ended November 30, 2007 
 
Expenses paid per $1,000 †    $ 4.04 
Ending value (after expenses)    $1,019.20 

COMPARING YOUR FUND’S EXPENSES 
WITH THOSE OF OTHER FUNDS (Unaudited) 

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment 
assuming a hypothetical 5% annualized return for the six months ended November 30, 2007 
 
Expenses paid per $1,000 †    $ 4.04 
Ending value (after expenses)    $1,021.00 

† Expenses are equal to the fund’s annualized expense ratio of .80%, multiplied by the average account value over the 
period, multiplied by 183/366 (to reflect the one-half year period). 

6

STATEMENT OF INVESTMENTS 
November 30, 2007 (Unaudited) 

Long-Term Municipal    Coupon    Maturity    Principal     
Investments—98.9%    Rate (%)    Date    Amount ($)    Value ($) 
New York—94.3%                 
Albany Industrial Development                 
Agency, LR (New York Assembly                 
Building Project)    7.75    1/1/10    430,000    448,447 
Battery Park City Authority,                 
Revenue    5.25    11/1/18    10,000,000    10,786,600 
Erie County Industrial Development                 
Agency, Life Care Community                 
Revenue (Episcopal Church Home                 
and Affiliates Life Care                 
Community, Inc. Project)    6.00    2/1/28    1,500,000    1,500,000 
Hudson Yards Infrastructure                 
Corporation, Hudson Yards                 
Senior Revenue (Insured; FGIC)    5.00    2/15/47    15,000,000    15,393,150 
Huntington Housing Authority,                 
Senior Housing Facility                 
Revenue (Gurwin Jewish Senior                 
Residences Project)    6.00    5/1/39    5,750,000    5,669,672 
Long Island Power Authority,                 
Electric System General                 
Revenue (Insured; FGIC)    5.00    12/1/25    10,000,000    10,534,200 
Long Island Power Authority,                 
Electric System General                 
Revenue (Insured; FSA)    5.25    12/1/14    16,000,000    17,836,000 
Long Island Power Authority,                 
Electric System General                 
Revenue (Insured; MBIA)    5.00    5/1/18    2,140,000    2,327,935 
Long Island Power Authority,                 
Electric System General                 
Revenue (Insured; MBIA)    5.00    9/1/25    28,765,000    30,358,581 
Metropolitan Transportation                 
Authority, Dedicated Tax Fund                 
Revenue (Insured; FSA)    5.25    11/15/25    8,750,000    9,249,450 
Metropolitan Transportation                 
Authority, Service Contract                 
Revenue (Insured; MBIA)    5.50    7/1/24    10,000,000    10,722,000 
Metropolitan Transportation                 
Authority, Transportation Revenue    5.00    11/15/31    8,250,000    8,541,967 
Monroe Tobacco Asset                 
Securitization Corporation,                 
Tobacco Settlement                 
Asset-Backed Bonds    6.63    6/1/10    500,000 a    545,555 

The Fund 7

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
Nassau County Industrial                 
Development Agency, IDR                 
(Keyspan-Glenwood Energy                 
Center, LLC Project)    5.25    6/1/27    12,750,000    12,877,245 
New York City    5.80    8/1/11    190,000    190,359 
New York City    5.50    6/1/13    875,000 a    971,932 
New York City    5.00    11/1/19    10,000,000    10,497,200 
New York City    5.50    6/1/23    125,000    132,626 
New York City    5.25    8/15/25    7,475,000    7,829,091 
New York City    5.00    10/1/25    10,000,000    10,381,200 
New York City    5.25    8/15/26    8,750,000    9,143,837 
New York City                 
(Insured; AMBAC)    5.75    8/1/12    1,570,000 a    1,740,486 
New York City                 
(Insured; AMBAC)    5.75    8/1/16    3,430,000    3,767,375 
New York City                 
(Insured; MBIA)    5.25    5/15/18    11,000,000    11,912,230 
New York City Industrial                 
Development Agency, Civic                 
Facility Revenue (United Jewish             
Appeals Federation Project)    5.00    7/1/27    1,000,000    1,038,870 
New York City Industrial                 
Development Agency, Civic                 
Facility Revenue (Vaughn                 
College of Aeronautics and                 
Technology Project)    5.00    12/1/28    5,075,000    4,675,242 
New York City Industrial Development             
Agency, PILOT Revenue (Queens             
Baseball Stadium Project)                 
(Insured; AMBAC)    5.00    1/1/26    5,000,000    5,235,850 
New York City Industrial                 
Development Agency, PILOT                 
Revenue (Yankee Stadium                 
Project) (Insured; FGIC)    5.00    3/1/31    28,715,000    29,815,933 
New York City Industrial                 
Development Agency, PILOT                 
Revenue (Yankee Stadium                 
Project) (Insured; MBIA)    5.00    3/1/36    10,000,000    10,361,400 

8

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
New York City Industrial                 
Development Agency, Special                 
Facility Revenue (American                 
Airlines, Inc. John F. Kennedy                 
International Airport Project)    8.00    8/1/28    12,500,000    14,023,250 
New York City Municipal Water                 
Finance Authority, Water and                 
Sewer System Revenue    5.50    6/15/10    13,000,000 a    13,855,530 
New York City Municipal Water                 
Finance Authority, Water and                 
Sewer System Second General             
Resolution Revenue    4.50    6/15/37    25,000,000    24,341,750 
New York City Municipal Water                 
Finance Authority, Water and                 
Sewer System Second General             
Resolution Revenue    5.00    6/15/39    10,000,000    10,217,900 
New York City Transitional Finance             
Authority, Building Aid                 
Revenue (Insured; FGIC)    5.00    7/15/27    10,000,000    10,527,100 
New York City Transitional Finance             
Authority, Future Tax                 
Secured Revenue    5.75    8/15/09    5,000,000 a    5,256,150 
New York City Transitional Finance             
Authority, Future Tax                 
Secured Revenue    6.00    8/15/09    1,000,000 a    1,055,350 
New York City Transitional Finance             
Authority, Future Tax                 
Secured Revenue    5.25    2/1/16    8,040,000    8,781,127 
New York City Transitional Finance             
Authority, Future Tax                 
Secured Revenue    5.00    11/1/23    10,000,000    10,613,500 
New York City Transitional Finance             
Authority, Future Tax                 
Secured Revenue    0/14.00    11/1/29    9,000,000 b    7,853,220 
New York City Transitional                 
Finance Authority,                 
Future Tax Secured                 
Revenue (Insured; FGIC)    6.00    8/15/09    5,000,000 a    5,276,750 

The Fund 9

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
New York City Transitional Finance                 
Authority, Future Tax Secured                 
Subordinate Revenue    5.00    11/1/22    14,890,000    16,006,303 
New York City Transitional Finance                 
Authority, Future Tax Secured                 
Subordinate Revenue    5.00    11/1/23    6,320,000    6,768,214 
New York Counties Tobacco Trust                 
IV, Tobacco Settlement                 
Pass-Through Bonds    6.50    6/1/10    675,000 a    735,001 
New York Counties Tobacco Trust                 
IV, Tobacco Settlement                 
Pass-Through Bonds    6.50    6/1/35    325,000    336,918 
New York Liberty Development                 
Corporation, Revenue (Goldman                 
Sachs Headquarters Issue)    5.25    10/1/35    13,900,000    14,776,534 
New York State Dormitory                 
Authority, Consolidated                 
Revenue (City University                 
System) (Insured; FGIC)    5.63    7/1/16    9,120,000    10,199,626 
New York State Dormitory                 
Authority, Consolidated Third                 
General Resolution Revenue                 
(City University System)                 
(Insured; FSA)    5.50    7/1/09    10,000,000 a    10,451,700 
New York State Dormitory                 
Authority, Insured Revenue                 
(Barnard College) (Insured; FGIC)    5.00    7/1/37    11,000,000    11,445,720 
New York State Dormitory                 
Authority, Insured Revenue                 
(New York University)                 
(Insured; MBIA)    5.75    7/1/27    33,625,000    39,713,142 
New York State Dormitory                 
Authority, LR (State                 
University Educational                 
Facilities) (Insured; FGIC)    5.50    7/1/11    10,000,000 a    10,774,900 
New York State Dormitory Authority,             
Mortgage Nursing Home Revenue             
(Menorah Campus, Inc.)                 
(Insured; FHA)    6.10    2/1/37    8,300,000    8,479,944 
New York State Dormitory                 
Authority, Revenue    5.88    5/15/11    19,900,000 c,d    21,487,124 

10

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
New York State Dormitory                 
Authority, Revenue (Columbia                 
University)    5.00    7/1/19    16,530,000    17,996,376 
New York State Dormitory                 
Authority, Revenue (Columbia                 
University)    5.00    7/1/20    7,920,000    8,583,300 
New York State Dormitory                 
Authority, Revenue (Columbia                 
University)    5.00    7/1/21    10,000,000    10,799,500 
New York State Dormitory                 
Authority, Revenue (Columbia                 
University)    5.00    7/1/23    10,255,000    10,997,565 
New York State Dormitory                 
Authority, Revenue (Columbia                 
University)    5.00    7/1/31    10,000,000    10,545,500 
New York State Dormitory                 
Authority, Revenue (Memorial                 
Sloan-Kettering Cancer Center)             
(Insured; MBIA)    5.75    7/1/20    3,000,000    3,481,200 
New York State Dormitory                 
Authority, Revenue (Memorial                 
Sloan-Kettering Cancer Center)             
(Insured; MBIA)    0.00    7/1/28    18,335,000    7,291,096 
New York State Dormitory                 
Authority, Revenue (Mental                 
Health Services Facilities                 
Improvement) (Insured; FGIC)    5.00    2/15/21    10,150,000    10,666,026 
New York State Dormitory                 
Authority, Revenue (Miriam                 
Osborne Memorial Home)                 
(Insured; ACA)    6.88    7/1/25    6,105,000    6,503,473 
New York State Dormitory                 
Authority, Revenue (Mount Sinai             
NYU Health Obligated Group)    5.50    7/1/26    7,925,000    7,975,720 
New York State Dormitory                 
Authority, Revenue (Mount Sinai             
NYU Health Obligated Group)    5.50    7/1/26    6,305,000    6,329,716 
New York State Dormitory                 
Authority, Revenue (Mount Sinai             
School of Medicine of New York             
University) (Insured; MBIA)    5.00    7/1/27    5,045,000    5,321,870 

The Fund 11

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
New York State Dormitory                 
Authority, Revenue (New York                 
University Hospitals Center)    5.00    7/1/22    10,000,000    9,707,300 
New York State Dormitory                 
Authority, Revenue (North                 
Shore University Hospital at                 
Forest Hills) (Insured; MBIA)    5.50    11/1/13    2,625,000    2,898,263 
New York State Dormitory                 
Authority, Revenue                 
(Rockefeller University)    5.00    7/1/32    18,505,000    19,105,117 
New York State Dormitory                 
Authority, Revenue (School                 
District Financing Program)                 
(Insured; MBIA)    5.38    10/1/22    31,000,000    33,264,240 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational Facilities)    5.88    5/15/11    100,000    107,976 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational Facilities)    7.50    5/15/11    1,180,000    1,272,819 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational Facilities)    7.50    5/15/11    1,480,000    1,625,514 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational                 
Facilities) (Insured; FGIC)    5.50    5/15/13    11,010,000    11,981,743 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational                 
Facilities) (Insured; FSA)    5.75    5/15/10    2,000,000 a    2,139,840 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational                 
Facilities) (Insured; FSA)    5.75    5/15/16    5,000,000    5,765,200 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational                 
Facilities) (Insured; MBIA)    5.50    5/15/13    100,000    109,105 

12

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational                 
Facilities) (Insured; MBIA)    5.50    5/15/13    12,900,000 c,d    14,074,609 
New York State Dormitory                 
Authority, Revenue (State                 
University Educational                 
Facilities) (Insured; MBIA)    5.25    5/15/15    6,825,000    7,502,791 
New York State Dormitory                 
Authority, Revenue (Vassar College)    5.00    7/1/46    10,000,000    10,326,400 
New York State Dormitory                 
Authority, Revenue (Winthrop                 
University Hospital Association)    5.50    7/1/32    1,000,000    1,010,230 
New York State Dormitory                 
Authority, State Personal                 
Income Tax Revenue (Education)    5.00    3/15/13    8,150,000 a    8,825,961 
New York State Dormitory                 
Authority, State Personal                 
Income Tax Revenue (Education)    5.05    3/15/13    500,000 a    542,675 
New York State Dormitory                 
Authority, State Personal                 
Income Tax Revenue (Education)    5.00    3/15/31    30,000,000    31,466,100 
New York State Energy Research and                 
Development Authority, PCR                 
(Central Hudson Gas and                 
Electric Corporation Project)                 
(Insured; AMBAC)    5.45    8/1/27    9,000,000    9,312,840 
New York State Environmental                 
Facilities Corporation, State                 
Clean Water and Drinking Water                 
Revolving Funds Revenue (New                 
York City Municipal Water                 
Finance Authority Projects)    5.25    6/15/20    13,745,000    14,654,507 
New York State Environmental                 
Facilities Corportation, State                 
Clean Water and Drinking Water                 
Revolving Funds Revenue (New                 
York City Municipal Water                 
Finance Authority Projects)    4.50    6/15/36    8,035,000    7,851,641 

The Fund 13

STATEMENT OF INVESTMENTS (Unaudited)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
New York State Housing Finance                 
Agency, Health Facilities Revenue    6.00    5/1/08    10,000,000    10,094,500 
New York State Mortgage Agency,                 
Homeowner Mortgage Revenue    5.40    10/1/10    2,920,000    2,981,641 
New York State Mortgage Agency,                 
Homeowner Mortgage Revenue    5.55    10/1/12    4,630,000    4,727,369 
New York State Mortgage Agency,                 
Homeowner Mortgage Revenue    5.80    10/1/28    4,070,000    4,071,872 
New York State Mortgage Agency,                 
Homeowner Mortgage Revenue    5.40    4/1/29    8,875,000    9,007,593 
New York State Power Authority,                 
Revenue and General Purpose    5.00    11/15/12    17,210,000 a    18,599,191 
New York State Power Authority,                 
Revenue and General Purpose    5.00    11/15/12    10,500,000 a    11,347,560 
New York State Thruway Authority,                 
General Revenue (Insured; FGIC)    5.00    1/1/25    5,000,000    5,298,500 
New York State Thruway Authority,                 
Second General Highway and                 
Bridge Trust Fund Bonds    5.00    4/1/21    10,000,000    10,751,300 
New York State Urban Development                 
Corporation, Corporate Purpose                 
Senior Lien Revenue    5.50    7/1/08    960,000 a    972,106 
New York State Urban Development                 
Corporation, Corporate Purpose                 
Senior Lien Revenue    5.50    7/1/16    9,040,000    9,145,497 
New York State Urban Development                 
Corporation, Service Contract                 
Revenue (Insured; FSA)    5.25    1/1/20    13,760,000    15,290,250 
New York State Urban Development                 
Corporation, Service Contract                 
Revenue (Insured; FSA)    5.00    1/1/26    6,425,000    6,813,970 
New York State Urban Development                 
Corporation, State Facilities                 
Revenue (Insured; MBIA)    5.70    4/1/20    20,000,000    22,857,800 
New York State Urban Development                 
Corporation, State Personal                 
Income Tax Revenue (Economic                 
Development and Housing)                 
(Insured; AMBAC)    5.00    12/15/23    8,175,000    8,625,851 

14

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
Niagara County Industrial                 
Development Agency, Solid                 
Waste Disposal Facility                 
Revenue (American Ref-Fuel                 
Company of Niagara, LP Facility)    5.55    11/15/15    2,500,000    2,526,325 
Orange County Industrial Development             
Agency, Life Care Community                 
Revenue (Glen Arden Inc. Project)    5.70    1/1/28    4,600,000    4,426,902 
Port Authority of New York and New                 
Jersey (Consolidated Bonds,                 
93rd Series)    6.13    6/1/94    15,000,000    17,596,350 
Port Authority of New York and New                 
Jersey (Consolidated Bonds,                 
132nd Series)    5.00    9/1/33    10,000,000    10,267,500 
Port Authority of New York and New                 
Jersey, Special Project Bonds                 
(JFK International Air Terminal                 
LLC Project) (Insured; MBIA)    6.25    12/1/13    6,000,000    6,754,980 
Port Authority of New York and New                 
Jersey, Special Project Bonds                 
(JFK International Air Terminal                 
LLC Project) (Insured; MBIA)    6.25    12/1/14    10,000,000    11,409,600 
Sales Tax Asset Receivable                 
Corporation, Sales Tax Asset                 
Revenue (Insured; AMBAC)    5.00    10/15/29    23,495,000    24,527,840 
Sales Tax Asset Receivable                 
Corporation, Sales Tax Asset                 
Revenue (Insured; MBIA)    5.25    10/15/18    30,000,000    32,533,200 
Sales Tax Asset Receivable                 
Corporation, Sales Tax Asset                 
Revenue (Insured; MBIA)    5.25    10/15/19    5,000,000    5,422,200 
Tobacco Settlement Financing                 
Corporation of New York,                 
Asset-Backed Revenue Bonds (State             
Contingency Contract Secured)    5.50    6/1/20    10,000,000    10,691,000 
Tompkins County Industrial                 
Development Agency, Civic                 
Facility Revenue (Ithacare                 
Center Project) (Insured; FHA)    6.20    2/1/37    6,000,000    6,130,440 

The Fund 15

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Long-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
Triborough Bridge and Tunnel                 
Authority, General                 
Purpose Revenue    5.50    1/1/12    10,000,000 a    10,864,100 
Triborough Bridge and Tunnel                 
Authority, General                 
Purpose Revenue    5.38    1/1/16    7,500,000 a    8,457,375 
Triborough Bridge and Tunnel                 
Authority, General                 
Purpose Revenue    5.25    11/15/19    10,000,000    10,698,500 
Triborough Bridge and Tunnel                 
Authority, General                 
Purpose Revenue    5.50    1/1/22    10,540,000 a    12,254,331 
Triborough Bridge and Tunnel                 
Authority, General                 
Purpose Revenue    5.13    11/15/29    10,000,000    10,461,000 
Triborough Bridge and Tunnel                 
Authority, General Revenue                 
(MTA Bridges and Tunnels)    5.00    11/15/32    5,000,000    5,245,850 
TSASC Inc. of New York,                 
Tobacco Settlement                 
Asset-Backed Bonds    5.13    6/1/42    16,230,000    15,428,076 
Watervliet Housing Authority,                 
Residential Housing Revenue                 
(Beltrone Living Center Project)    6.00    6/1/08    1,800,000 a    1,858,572 
Watervliet Housing Authority,                 
Residential Housing Revenue                 
(Beltrone Living Center Project)    6.13    6/1/08    1,000,000 a    1,033,160 
U.S. Related—4.6%                 
Puerto Rico Commonwealth,                 
Public Improvement (Insured; FSA)    5.50    7/1/10    500,000    527,100 
Puerto Rico Commonwealth,                 
Public Improvement (Insured; FSA)    5.50    7/1/10    9,600,000 c,d    10,120,320 
Puerto Rico Commonwealth,                 
Public Improvement                 
(Insured; MBIA)    6.00    7/1/15    3,000,000    3,466,620 
Puerto Rico Highways and                 
Transportation Authority,                 
Highway Revenue    0.00    7/1/27    22,625,000    8,357,223 
Puerto Rico Highways and                 
Transportation Authority,                 
Transportation Revenue    5.50    7/1/24    5,500,000    5,946,490 

16

Long-Term Municipal    Coupon    Maturity    Principal         
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
U.S. Related (continued)                     
Puerto Rico Highways and                     
Transportation Authority,                     
Transportation Revenue                     
(Insured; MBIA)    5.00    7/1/38    2,000,000c,d        2,038,790 
Puerto Rico Infrastructure                     
Financing Authority, Special                     
Tax Revenue    5.50    10/1/40    5,000,000        5,288,450 
Puerto Rico Infrastructure                     
Financing Authority, Special                     
Tax Revenue (Insured; AMBAC)    5.50    7/1/27    5,000,000        5,600,800 
University of Puerto Rico,                     
University System Revenue    5.00    6/1/30    14,525,000        14,457,023 
Virgin Islands Public Finance                     
Authority, Revenue, Virgin                     
Islands Gross Receipts Taxes                     
Loan Note    6.38    10/1/19    1,000,000        1,078,240 
Total Long-Term Municipal Investments                 
(cost $1,174,396,299)                    1,213,550,756 
 
Short-Term Municipal                     
Investments—1.4%                     
New York;                     
New York City,                     
GO Notes (LOC; Westdeutsche                     
Landesbank)    3.44    12/1/07    1,000,000 e        1,000,000 
New York City Industrial                     
Development Agency, Liberty                     
Revenue (One Bryant Park LLC                     
Project) (Liquidity Facility;                     
Bayerische Landesbank and LOC:                     
Bank of America and Citibank NA)    3.54    12/1/07    2,000,000 e        2,000,000 
New York City Municipal Water                     
Finance Authority, Water and                     
Sewer System Second General                     
Resolution Revenue (Liquidity                     
Facility: California State                     
Teachers Retirement System and                     
State Street Bank and Trust Co.)    3.41    12/1/07    1,000,000 e        1,000,000 
New York City Transitional Finance                     
Authority, Revenue (New York                     
City Recovery)    3.46    12/1/07    3,100,000 e        3,100,000 

The Fund 17

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Short-Term Municipal    Coupon    Maturity    Principal     
Investments (continued)    Rate (%)    Date    Amount ($)    Value ($) 
New York (continued)                 
New York City Transitional Finance                 
Authority, Revenue (New York                 
City Recovery) (Liquidity                 
Facility; Bayerische Landesbank)    3.44    12/1/07    3,600,000 e    3,600,000 
New York City Transitional Finance                 
Authority, Revenue (New York                 
City Recovery) (Liquidity                 
Facility; Royal Bank of Canada)    3.44    12/1/07    1,500,000 e    1,500,000 
New York State Dormitory                 
Authority, Insured Revenue                 
(Long Island University)                 
(Insured; CIFG and Liquidity                 
Facility; Dexia Credit Locale)    3.53    12/1/07    5,400,000 e    5,400,000 
Total Short-Term Municipal Investments             
(cost $17,600,000)                17,600,000 
 
Total Investments (cost $1,191,996,299)        100.3%    1,231,150,756 
Liabilities, Less Cash and Receivables        (.3%)    (3,865,336) 
Net Assets            100.0%    1,227,285,420 

a These securities are prerefunded; the date shown represents the prerefunded date. Bonds which are prerefunded are 
collateralized by U.S. Government securities which are held in escrow and are used to pay principal and interest on 
the municipal issue and to retire the bonds in full at the earliest refunding date. 
b Zero coupon until a specified date at which time the stated coupon rate becomes effective until maturity. 
c Securities exempt from registration under Rule 144A of the Securities Act of 1933.These securities may be resold in 
transactions exempt from registration, normally to qualified institutional buyers. At November 30, 2007, these 
securities amounted to $47,720,843 or 3.9% of net assets. 
d Collateral for floating rate borrowings. 
e Securities payable on demand.Variable interest rate—subject to periodic change. 

18

Summary of Abbreviations         
 
ACA    American Capital Access    AGC    ACE Guaranty Corporation 
AGIC    Asset Guaranty Insurance    AMBAC    American Municipal Bond 
    Company        Assurance Corporation 
ARRN    Adjustable Rate Receipt Notes    BAN    Bond Anticipation Notes 
BIGI    Bond Investors Guaranty Insurance    BPA    Bond Purchase Agreement 
CGIC    Capital Guaranty Insurance    CIC    Continental Insurance 
    Company        Company 
CIFG    CDC Ixis Financial Guaranty    CMAC    Capital Market Assurance 
            Corporation 
COP    Certificate of Participation    CP    Commercial Paper 
EDR    Economic Development Revenue    EIR    Environmental Improvement 
            Revenue 
FGIC    Financial Guaranty Insurance         
    Company    FHA    Federal Housing Administration 
FHLB    Federal Home Loan Bank    FHLMC    Federal Home Loan Mortgage 
            Corporation 
FNMA    Federal National         
    Mortgage Association    FSA    Financial Security Assurance 
GAN    Grant Anticipation Notes    GIC    Guaranteed Investment Contract 
GNMA    Government National         
    Mortgage Association    GO    General Obligation 
HR    Hospital Revenue    IDB    Industrial Development Board 
IDC    Industrial Development Corporation    IDR    Industrial Development Revenue 
LOC    Letter of Credit    LOR    Limited Obligation Revenue 
LR    Lease Revenue    MBIA    Municipal Bond Investors Assurance 
            Insurance Corporation 
MFHR    Multi-Family Housing Revenue    MFMR    Multi-Family Mortgage Revenue 
PCR    Pollution Control Revenue    PILOT    Payment in Lieu of Taxes 
RAC    Revenue Anticipation Certificates    RAN    Revenue Anticipation Notes 
RAW    Revenue Anticipation Warrants    RRR    Resources Recovery Revenue 
SAAN    State Aid Anticipation Notes    SBPA    Standby Bond Purchase Agreement 
SFHR    Single Family Housing Revenue    SFMR    Single Family Mortgage Revenue 
SONYMA    State of New York Mortgage Agency    SWDR    Solid Waste Disposal Revenue 
TAN    Tax Anticipation Notes    TAW    Tax Anticipation Warrants 
TRAN    Tax and Revenue Anticipation Notes    XLCA    XL Capital Assurance 

The Fund 19

STATEMENT OF INVESTMENTS (Unaudited) (continued)

Summary of Combined Ratings (Unaudited)     
 
Fitch    or    Moody’s    or    Standard & Poor’s    Value (%) † 
AAA        Aaa        AAA    65.6 
AA        Aa        AA    21.6 
A        A        A    3.0 
BBB        Baa        BBB    5.3 
BB        Ba        BB    .4 
B        B        B    1.2 
F1        MIG1/P1        SP1/A1    .7 
Not Rated f        Not Rated f        Not Rated f    2.2 
                    100.0 

† Based on total investments. 
f Securities which, while not rated by Fitch, Moody’s and Standard & Poor’s, have been determined by the Manager to 
be of comparable quality to those rated securities in which the fund may invest. 

See notes to financial statements.

20

STATEMENT OF ASSETS AND LIABILITIES 
November 30, 2007 (Unaudited) 

    Cost    Value 
Assets ($):         
Investments in securities—See Statement of Investments    1,191,996,299    1,231,150,756 
Interest receivable        16,983,674 
Receivable for investment securities sold        12,989,516 
Receivable for shares of Common Stock subscribed        48,765 
Prepaid expenses        22,258 
        1,261,194,969 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(b)        670,677 
Cash overdraft due to Custodian        1,631,508 
Payable for floating rate notes issued—Note 4        22,200,000 
Payable for investment securities purchased        8,480,908 
Payable for shares of Common Stock redeemed        694,513 
Interest and related expenses payable        126,053 
Accrued expenses        105,890 
        33,909,549 
Net Assets ($)        1,227,285,420 
Composition of Net Assets ($):         
Paid-in capital        1,187,810,218 
Accumulated undistributed investment income—net        16,583 
Accumulated net realized gain (loss) on investments        304,162 
Accumulated net unrealized appreciation         
(depreciation) on investments        39,154,457 
Net Assets ($)        1,227,285,420 
Shares Outstanding         
(300 million shares of $.001 par value Common Stock authorized)    83,890,905 
Net Asset Value, offering and redemption price per share—Note 3(d) ($)    14.63 

See notes to financial statements.

The Fund

21

  STATEMENT OF OPERATIONS
Six Months Ended November 30, 2007 (Unaudited)
Investment Income ($):     
Interest Income    29,072,483 
Expenses:     
Management fee—Note 3(a)    3,668,480 
Shareholder servicing costs—Note 3(b)    521,148 
Interest and related expenses    505,039 
Directors’ fees and expenses—Note 3(c)    61,182 
Custodian fees—Note 3(b)    39,610 
Professional fees    30,074 
Prospectus and shareholders’ reports    26,890 
Registration fees    12,931 
Loan commitment fees—Note 2    7,086 
Miscellaneous    30,372 
Total Expenses    4,902,812 
Less—reduction in custody fees     
due to earnings credits—Note 1(b)    (33,110) 
Net Expenses    4,869,702 
Investment Income—Net    24,202,781 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    130,288 
Net unrealized appreciation (depreciation) on investments    (1,438,019) 
Net Realized and Unrealized Gain (Loss) on Investments    (1,307,731) 
Net Increase in Net Assets Resulting from Operations    22,895,050 

See notes to financial statements.

22

STATEMENT OF CHANGES IN NET ASSETS

    Six Months Ended     
    November 30, 2007    Year Ended 
    (Unaudited)    May 31, 2007 
Operations ($):         
Investment income—net    24,202,781    48,855,221 
Net realized gain (loss) on investments    130,288    5,040,368 
Net unrealized appreciation         
(depreciation) on investments    (1,438,019)    270,886 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    22,895,050    54,166,475 
Dividends to Shareholders from ($):         
Investment income—net    (24,186,198)    (48,827,558) 
Net realized gain on investments    —    (573,472) 
Total Dividends    (24,186,198)    (49,401,030) 
Capital Stock Transactions ($):         
Net proceeds from shares sold    39,159,060    82,522,334 
Dividends reinvested    17,536,011    35,884,248 
Cost of shares redeemed    (69,835,521)    (115,698,474) 
Increase (Decrease) in Net Assets         
from Capital Stock Transactions    (13,140,450)    2,708,108 
Total Increase (Decrease) in Net Assets    (14,431,598)    7,473,553 
Net Assets ($):         
Beginning of Period    1,241,717,018    1,234,243,465 
End of Period    1,227,285,420    1,241,717,018 
Undistributed investment income—net    16,583    — 
Capital Share Transactions (Shares):         
Shares sold    2,696,834    5,586,163 
Shares issued for dividends reinvested    1,206,656    2,430,609 
Shares redeemed    (4,811,094)    (7,843,172) 
Net Increase (Decrease) in Shares Outstanding    (907,604)    173,600 

See notes to financial statements.

The Fund 23

FINANCIAL HIGHLIGHTS

The following table describes the performance for the fiscal periods indicated. Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

Six Months Ended                     
November 30, 2007            Year Ended May 31,     
(Unaudited)    2007    2006    2005    2004    2003 
Per Share Data ($):                         
Net asset value,                         
beginning of period    14.64    14.58    15.02    14.63    15.57    15.02 
Investment Operations:                         
Investment income—net a    .29    .58    .59    .61    .64    .69 
Net realized and                         
unrealized gain                         
(loss) on investments    (.01)    .07    (.40)    .40    (.88)    .71 
Total from                         
Investment Operations    .28    .65    .19    1.01    (.24)    1.40 
Distributions:                         
Dividends from                         
investment income—net    (.29)    (.58)    (.59)    (.62)    (.63)    (.69) 
Dividends from net realized                     
gain on investments    —    (.01)    (.04)    —    (.07)    (.16) 
Total Distributions    (.29)    (.59)    (.63)    (.62)    (.70)    (.85) 
Net asset value,                         
end of period    14.63    14.64    14.58    15.02    14.63    15.57 
Total Return (%)    1.92    4.47    1.32    7.11    (1.57)    9.56 
Ratios/Supplemental                         
Data (%):                         
Ratio of total expenses                         
to average net assets    .80    .81    .81    .80    .79    .84 
Ratio of net expenses                         
to average net assets    .80    .80    .74    .75    .79    .84 
Ratio of net investment                         
income to average                         
net assets    3.96    3.92    4.02    4.13    4.25    4.53 
Portfolio Turnover Rate    22.21    30.27    46.18    40.69    24.22    29.28 
Net Assets,                         
end of period                         
($ x 1,000) 1,227,285    1,241,717    1,234,243    1,299,286    1,296,430    1,475,917 

a Based on average shares outstanding at each month end. 
See notes to financial statements. 

24

NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1—Significant Accounting Policies:

Dreyfus New York Tax Exempt Bond Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified, open-end management investment company. The fund’s investment objective is to provide investors with as high a level of current income exempt from federal, New York state and New York city personal income taxes as is consistent with the preservation of capital. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s investment adviser. On July 1, 2007, Mellon Financial Corporation (“Mellon Financial”) and The Bank of New York Company, Inc. merged, forming The Bank of New York Mellon Corporation (“BNY Mellon”). As part of this transaction, Dreyfus became a wholly-owned subsidiary of BNY Mellon. MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of the Manager, is the distributor of the fund’s shares, which are sold to the public without a sales charge.

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which may require the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued each business day by an independent pricing service (the “Service”) approved by the Board of Directors. Investments for which quoted bid prices are readily available and are representative of the bid side of the market in the judgment of the Service are valued at the mean between the quoted bid prices (as obtained by the Service from dealers in such securities) and asked prices (as calculated by the Service based upon its evaluation of the market for such securities). Other investments (which constitute a majority of the portfolio securities) are carried at fair value as deter-

The Fund 25

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

mined by the Service, based on methods which include consideration of: yields or prices of municipal securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Options and financial futures on municipal and U.S.Treasury securities are valued at the last sales price on the securities exchange on which such securities are primarily traded or at the last sales price on the national securities market on each business day.

The Financial Accounting Standards Board (“FASB”) released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Interest income, adjusted for accretion of discount and amortization of premium on investments, is earned from settlement date and recognized on the accrual basis. Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after the trade date.

The fund has an arrangement with the custodian bank whereby the fund receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits as an expense offset in the Statement of Operations.

The fund follows an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting the state and certain of its public bodies and municipalities may affect the ability of issuers within the state to pay interest on, or repay principal of, municipal obligations held by the fund.

26

(c) Dividends to shareholders: It is the policy of the fund to declare dividends daily from investment income-net. Such dividends are paid monthly. Dividends from net realized capital gains, if any, are normally declared and paid annually, but the fund may make distributions on a more frequent basis to comply with the distribution requirements of the Internal Revenue Code of 1986, as amended (the “Code”).To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(d) Federal income taxes: It is the policy of the fund to continue to qualify as a regulated investment company, which can distribute tax exempt dividends, by complying with the applicable provisions of the Code, and to make distributions of income and net realized capital gain sufficient to relieve it from substantially all federal income and excise taxes.

The FASB released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.

The tax characters of distributions paid to shareholders during the fiscal year ended May 31, 2007 were as follows: tax exempt income

The Fund 27

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

$48,827,558 and long term gains $573,472.The tax character of current year distributions will be determined at the end of the current fiscal year.

NOTE 2—Bank Line of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings. During the period ended November 30, 2007, the fund did not borrow under the Facility.

NOTE 3—Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement (“Agreement”) with the Manager, the management fee is computed at the annual rate of .60% of the value of the fund’s average daily net assets and is payable monthly. The Agreement provides that if in any fiscal year the aggregate expenses of the fund, exclusive of taxes, brokerage fees, interest on borrowings, commitment fees and extraordinary expenses, exceed 1 1 / 2 % of the value of the fund’s average net assets, the fund may deduct from the payment to be made to the Manager, or the Manager will bear such excess expense. During the period ended November 30, 2007 there was no expense reimbursement pursuant to the Agreement.

(b) Under the Shareholder Services Plan, the fund reimburses the Distributor an amount not to exceed an annual rate of .25% of the value of the fund’s average daily net assets for certain allocated expenses of providing personal services and/or maintaining shareholder accounts. The services provided may include personal services relating to shareholder accounts, such as answering shareholder inquiries regarding the fund and providing reports and other information, and services related to the maintenance of shareholder accounts. During the period ended November 30, 2007, the fund was charged $283,610 pursuant to the Shareholder Services Plan.

28

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended November 30, 2007, the fund was charged $154,813 pursuant to the transfer agency agreement.

Effective July 1, 2007, the fund’s custodian, The Bank of New York, became an affiliate of the Manager. Under the fund’s pre-existing custody agreement with The Bank of New York, the fund was charged $34,225 for providing custodial services for the fund for five months ended November 30, 2007. Prior to becoming an affiliate, The Bank of New York was paid $5,385 for the custody services to the fund for the month ended June 30, 2007.

During the period ended November 30, 2007, the fund was charged $2,411 for services performed by the Chief Compliance Officer.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $601,115, custody fees $13,848, chief compliance officer fees $3,214 and transfer agency per account fees $52,500.

(c) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

(d) A .10% redemption fee is charged and retained by the fund on certain shares redeemed within thirty days following the date of their issuance, including redemptions made through the use of the fund’s exchange privilege. During the period ended November 30, 2007, redemption fees charged and retained by the fund amounted to $29. Effective December 1, 2007, the fund will no longer assess a redemption fee on shares that are reassessed or exchanged before the end of the required holding period.The fund reserves the right to reimpose a redemption fee in the future.

The Fund 29

NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities, during the period ended November 30, 2007, amounted to $270,899,227 and $302,190,560, respectively.

The fund may participate in secondary inverse floater structures in which fixed-rate, tax-exempt municipal bonds purchased by the fund are transferred to a trust. The trust subsequently issues two or more variable rate securities that are collateralized by the cash flows of the fixed-rate, tax-exempt municipal bonds. One or more of these variable rate securities pays interest based on a short term floating rate set by a remarketing agent at predetermined intervals. A residual interest tax-exempt security is also created by the trust, which is transferred to the fund, and is paid interest based on the remaining cash flow of the trust, after payment of interest on the other securities and various expenses of the trust.

The fund accounts for the transfer of bonds to the trusts as secured borrowings, with the securities transferred remaining in the fund’s investments, and the related floating rate certificate securities reflected as fund liabilities under the caption, “Payable for floating rate notes issued” in the Statement of Assets and Liabilities.

At November 30, 2007, accumulated net unrealized appreciation on investments was $39,154,457, consisting of $44,026,556 gross unrealized appreciation and $4,872,099 gross unrealized depreciation.

At November 30, 2007, the cost of investments for federal income tax purposes was substantially the same as the cost for financial reporting purposes (see the Statement of Investments).

30

NOTE 5—Plan of Reorganization

On September 7, 2007, the Board of Directors approved the fund entering into an Agreement and Plan of Reorganization with Dreyfus New York Tax Exempt Intermediate Bond Fund (the “Acquired Fund”), providing for the Acquired Fund to merge into the fund as part of a tax-free reorganization.The merger, which was subject to the approval of the Acquired Fund’s shareholders (which approval was obtained on December 6, 2007), occurred on the close of business December 19, 2007. On the merger date, the Acquired Fund exchanged all of its assets at net asset value, subject to liabilities, for an equivalent value of shares of the fund. Such shares were distributed pro rata to shareholders of the Acquired Fund so that each shareholder receives a number of shares of the fund equal to the aggregate net asset value of the shareholder’s Acquired Fund shares.

The Fund 31

INFORMATION ABOUT THE REVIEW AND APPROVAL 
OF THE FUND’S MANAGEMENT AGREEMENT (Unaudited) 

At a meeting of the fund’s Board of Directors held on October 29, 2007 and October 30, 2007, the Board considered the re-approval for an annual period of the fund’s Management Agreement, pursuant to which the Manager provides the fund with investment advisory and administrative services.The Board members, none of whom are “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the fund, were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Manager.

Analysis of Nature, Extent, and Quality of Services Provided to the Fund. The Board members received a presentation from representatives of the Manager regarding services provided to the fund and other funds in the Dreyfus fund complex, and discussed the nature, extent, and quality of the services provided to the fund pursuant to its Management Agreement.The Manager’s representatives reviewed the fund’s distribution of accounts and the relationships the Manager has with various intermediaries and the different needs of each. The Manager’s representatives noted the diversity of distribution of the fund as well as among the funds in the Dreyfus fund complex, and the Manager’s corresponding need for broad, deep, and diverse resources to be able to provide ongoing shareholder services to each of the fund’s distribution channels. The Board also reviewed the number of shareholder accounts in the fund, as well as the fund’s asset size.

The Board members also considered the Manager’s research and portfolio management capabilities and that the Manager also provides oversight of day-to-day fund operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements.The Board members also considered the Manager’s extensive administrative, accounting, and compliance infrastructure.

Comparative Analysis of the Fund’s Management Fee and Expense Ratio and Performance. The Board members reviewed reports prepared by Lipper, Inc., an independent provider of investment company data, which included information comparing the fund’s management fee and

32

expense ratio with a group of comparable funds (the “Expense Group”) and with a broader group of funds (the “Expense Universe”) that were selected by Lipper. Included in these reports were comparisons of contractual and actual management fee rates and total operating expenses.

The Board members also reviewed the reports prepared by Lipper that presented the fund’s performance for various periods ended September 30, 2007, as well as comparisons of total return performance for various periods ended September 30, 2007 and yield performance for one-year periods ended September 30th for the fund to the same group of funds as the Expense Group (the “Performance Group”) and to a group of funds that was broader than the Expense Universe (the “Performance Universe”) that also were selected by Lipper. The Manager previously had furnished the Board with a description of the methodology Lipper used to select the fund’s Expense Group and Expense Universe, and Performance Group and Performance Universe. The Manager also provided a comparison of the fund’s total returns to the fund’s Lipper category average returns for the past 10 calendar years.

The Board reviewed the results of the Expense Group and Expense Universe comparisons that were prepared based on financial statements currently available to Lipper as of September 30, 2007. The Board reviewed the range of management fees and expense ratios of the funds in the Expense Group and Expense Universe, and noted that the fund’s contractual and actual management fees were higher than the respective Expense Group and Expense Universe medians. The Board also noted that the fund’s total expense ratio was lower than the Expense Group and Expense Universe medians.

With respect to the fund’s performance, the Board noted the fund’s more competitive total return performance in the most recent two years, despite the fund’s total returns being lower than the Performance Group and Performance Universe medians for each reported time period up to 10 years.The Board also noted that the fund’s total returns were at, or higher than, the Performance Universe median for each reported time period up to 10 years, with the exception of the 5-year

The Fund 33

INFORMATION ABOUT THE    REVIEW AND    APPROVAL    OF THE 
FUND’S MANAGEMENT    AGREEMENT    (Unaudited)    (continued) 

period. On a yield performance basis, the Board noted that the fund’s 1-year yield performance for the past 10 annual periods was variously higher and lower than the Performance Group median, and higher than the Performance Universe median, for each reported annual period.

Representatives of the Manager reviewed with the Board members the fees paid to the Manager or its affiliates by mutual funds managed by the Manager or its affiliates that were reported in the same Lipper category as the fund (the “Similar Funds”), and explained the nature of the Similar Funds and any differences, from the Manager’s perspective, in providing services to the Similar Funds as compared to the fund.The Manager’s representatives also reviewed the costs associated with distribution through intermediaries. The Board analyzed differences in fees paid to the Manager and discussed the relationship of the management fees paid in light of the services provided. The Board members considered the relevance of the fee information provided for the Similar Funds, to evaluate the appropriateness and reasonableness of the fund’s management fee. Representatives of the Manager noted that there were no similarly managed institutional separate accounts or wrap fee accounts managed by the Manager or its affiliates with similar investment objectives, policies, and strategies as the fund.

Analysis of Profitability and Economies of Scale. The Manager’s representatives reviewed the dollar amount of expenses allocated and profit received by the Manager and the method used to determine such expenses and profit.The Board considered information, previously provided and discussed, prepared by an independent consulting firm regarding the Manager’s approach to allocating costs to, and determining the profitability of, individual funds and the entire Dreyfus mutual fund complex.The Board members also considered that the methodology had also been reviewed by an independent registered public accounting firm which, like the consultant, found the methodology to be reasonable.The consulting firm also analyzed where any economies of scale might emerge in connection with the management of the fund. The Board members evaluated the profitability analysis in light of the relevant circumstances for the fund, including the change in the fund’s

34

asset size from the prior year, and the extent to which economies of scale would be realized if the fund grows and whether fee levels reflect these economies of scale for the benefit of fund shareholders. The Board members also considered potential benefits to the Manager from acting as investment adviser to the fund and noted that there were no soft dollar arrangements in effect with respect to trading the fund’s portfolio.

It was noted that the Board members should consider the Manager’s profitability with respect to the fund as part of their evaluation of whether the fees under the Management Agreement bear a reasonable relationship to the mix of services provided by the Manager, including the nature, extent, and quality of such services and that a discussion of economies of scale is predicated on increasing assets and that, if a fund’s assets had been decreasing, the possibility that the Manager may have realized any economies of scale would be less. It was noted that the profitability percentage for managing the fund was within the range determined by appropriate court cases to be reasonable given the services rendered and that the profitability percentage for managing the fund was reasonable given the generally superior service levels provided.

At the conclusion of these discussions, the Board agreed that it had been furnished with sufficient information to make an informed business decision with respect to continuation of the fund’s Management Agreement. Based on the discussions and considerations as described above, the Board reached the following conclusions and determinations.

  • The Board concluded that the nature, extent, and quality of the services provided by the Manager are adequate and appropriate.
  • The Board noted the improved relative total return results for the recent 1-year and 2-year periods and the fund’s competitive yield performance.
  • The Board concluded that the fee paid to the Manager by the fund was reasonable in light of the services provided, comparative performance and expense and management fee information, costs of the services provided, and profits to be realized and benefits derived or to be derived by the Manager from its relationship with the fund.

The Fund 35

INFORMATION ABOUT THE    REVIEW AND    APPROVAL    OF THE 
FUND’S MANAGEMENT    AGREEMENT    (Unaudited)    (continued) 

  • The Board determined that the economies of scale which may accrue to the Manager and its affiliates in connection with the management of the fund had been adequately considered by the Manager in connection with the management fee rate charged to the fund, and that, to the extent in the future it were to be determined that material economies of scale had not been shared with the fund, the Board would seek to have those economies of scale shared with the fund.

The Board members considered these conclusions and determinations, along with the information received on a routine and regular basis throughout the year, and, without any one factor being dispositive, the Board determined that re-approval of the fund’s Management Agreement was in the best interests of the fund and its shareholders.

36

Mail The Dreyfus Family of Funds, 144 Glenn Curtiss Boulevard, Uniondale, NY 11556-0144 E-mail Send your request to info@dreyfus.com Internet Information can be viewed online or downloaded at: http://www.dreyfus.com

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The fund's Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.

Information regarding how the fund voted proxies relating to portfolio securities for the 12-month period ended June 30, 2007, is available on the SEC’s website at http://www.sec.gov and without charge, upon request, by calling 1-800-645-6561.

© 2008 MBSC Securities Corporation

Item 2.    Code of Ethics. 
    Not applicable. 
Item 3.    Audit Committee Financial Expert. 
    Not applicable. 
Item 4.    Principal Accountant Fees and Services. 
    Not applicable. 
Item 5.    Audit Committee of Listed Registrants. 
    Not applicable. 
Item 6.    Schedule of Investments. 
    Not applicable. 
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable. 
Item 8.    Portfolio Managers of Closed-End Management Investment Companies. 
    Not applicable. 
Item 9.    Purchases of Equity Securities by Closed-End Management Investment Companies and 
    Affiliated Purchasers. 
    Not applicable. 
Item 10.    Submission of Matters to a Vote of Security Holders. 

The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders.

-2-

Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.

Item 11.    Controls and Procedures. 

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) The Registrant has revised its internal control over financial reporting with respect to investments in certain inverse floater structures to account for such investments as secured borrowings and to report the related income and expense.

Item 12.    Exhibits. 

(a)(1)    Not applicable. 

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3) Not applicable.

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

DREYFUS NEW YORK TAX EXEMPT BOND FUND, INC.

By:    /s/ J. David Officer 
    J. David Officer 
    President
 
Date:    January 24, 2008 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

-3-

By:    /s/ J. David Officer 
    J. David Officer 
    President
 
Date:    January 24, 2008 

By:    /s/ James Windels 
    James Windels 
    Treasurer
 
Date:    January 24, 2008 

EXHIBIT INDEX

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)

-4-