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<SEC-DOCUMENT>0000930413-04-002469.txt : 20040506
<SEC-HEADER>0000930413-04-002469.hdr.sgml : 20040506
<ACCEPTANCE-DATETIME>20040506163523
ACCESSION NUMBER:		0000930413-04-002469
CONFORMED SUBMISSION TYPE:	N-CSRS
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20040229
FILED AS OF DATE:		20040506
EFFECTIVENESS DATE:		20040506

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLACKROCK MUNICIPAL INCOME TRUST II
		CENTRAL INDEX KEY:			0001176194
		IRS NUMBER:				010722216
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		N-CSRS
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-21126
		FILM NUMBER:		04785582

	BUSINESS ADDRESS:	
		STREET 1:		100 BELLEVUE PARKWAY
		STREET 2:		MUTUAL FUND DEPARTMENT
		CITY:			WILMINGTON
		STATE:			DE
		ZIP:			19809
		BUSINESS PHONE:		302-797-2449
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSRS
<SEQUENCE>1
<FILENAME>c32155_ncsrs.htm
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>

<p align="center"><font size="1"> <font size="2"><strong>UNITED STATES<br>
SECURITIES AND EXCHANGE COMMISSION<br>
Washington, D.C. 20549</strong></font></font>
<p align="center"><font size="2"> FORM N-CSR</font></p>
<p align="center"><font size="2"> CERTIFIED SHAREHOLDER REPORT OF REGISTERED<br>
  MANAGEMENT INVESTMENT COMPANIES</font></p>
<p>&nbsp;</p>
<p><font size="2">Investment Company Act file number: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;811-21126<br>
</font></p>
<p align="center"><font size="2"> BLACKROCK  MUNICIPAL INCOME TRUST II</font></p>
<hr noshade>
<div align="center"><font size="2">(Exact name of registrant as specified in charter)</font>
</div>
<p align="center">&nbsp;</p>
<p align="center"><font size="2">100 BELLEVUE PARKWAY, WILMINGTON, DE 19809 </font></p>
<hr noshade>
<div align="center"><font size="2">(Address of principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Zip
      code)</font>
</div>
<p align="center">&nbsp;</p>
<p align="center"><font size="2">Robert S. Kapito, President</font></p>
<p align="center"><font size="2"> BLACKROCK ADVISORS, INC.</font></p>
<p align="center"><font size="2"> 40 EAST 52ND STREET, NEW YORK, NY 10022</font></p>
<hr noshade>
<div align="center"><font size="2">(Name and address of agent for service)</font>
</div>
<p>&nbsp;</p>
<p><font size="2">Registrant's telephone number, including area code: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;302
    797-2162<br>
  </font></p>
<p><font size="2">Date of fiscal year end: &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;August 31, 2004<br>
  </font></p>
<p><font size="2">Date of reporting period: &nbsp;&nbsp;February 29, 2004</font></p>
<HR noshade size=4><PAGE>
<p><font size="2">ITEM 1. REPORTS TO SHAREHOLDERS.</font>
<p><font size="2">The Trust's semi-annual report transmitted to shareholders pursuant to Rule
  30e-1 under the Investment Company Act of 1940 is as follows:</font></p>
<p>
<p><font size="1">FIXED INCOME &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LIQUIDITY                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EQUITIES                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ALTERNATIVES                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BLACKROCK
      SOLUTIONS</font>
<p>
<p><p><font size="6">BlackRock<br>Closed-End Funds<br>Semi-Annual
Report</font>
<p><font size="2">FEBRUARY 29, 2004
(UNAUDITED)</font>
<p><p><font size="3">BlackRock Insured Municipal Income Trust
(BYM)
</font><p><font size="3">BlackRock Municipal Bond Trust (BBK)
</font><p><font size="3">BlackRock Municipal Income Trust II (BLE)
</font><p><font size="3">BlackRock California Insured Municipal Income Trust (BCK)
</font><p><font size="3">BlackRock California Municipal Bond Trust (BZA)
</font><p><font size="3">BlackRock California Municipal Income Trust II (BCL)
</font><p><font size="3">BlackRock Florida Insured Municipal Income Trust (BAF)
</font><p><font size="3">BlackRock Florida Municipal Bond Trust (BIE)
</font><p><font size="3">BlackRock Maryland Municipal Bond Trust (BZM)
</font><p><font size="3">BlackRock New Jersey Municipal Bond Trust (BLJ)
</font><p><font size="3">BlackRock New York Insured Municipal Income Trust (BSE)
</font><p><font size="3">BlackRock New York Municipal Bond Trust (BQH)
</font><p><font size="3">BlackRock New York Municipal Income Trust II (BFY)
</font><p><font size="3">BlackRock Virginia Municipal Bond Trust (BHV)</font><p>
<p>
<p>
<p align="right"><img src="cbr-blk.jpg">
<p><font size="1">NOT FDIC INSURED<br>
  MAY LOSE VALUE<br>
  NO BANK GUARANTEE</font>
<p><p>
<HR noshade size=4><PAGE>

<p align="center"><font size="3"><b>TABLE OF CONTENTS</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="3"><font size="3">Letter
to Shareholders</font></font></td>
<td>&nbsp;</td>
<td align=left><font size="3">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><div align="right"><font size="3">1</font></div></td>

</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="3">Trust Summaries</font></td>
<td>&nbsp;</td>
<td align=left><font size="3">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><div align="right"><font size="3">2</font></div></td>
</tr>
<tr valign=top><td align=left><font size="3">Portfolios of Investments</font></td>
<td>&nbsp;</td>
<td align=left><font size="3">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><div align="right"><font size="3">16</font></div></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="3">Financial Statements</font></td>

<td>&nbsp;</td><td>&nbsp;</td><td><td align=left><div align="right"></div></td>
</tr>
<tr valign=top><td align=left><font size="3">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements
of Assets and Liabilities</font></td>
<td>&nbsp;</td>
<td align=left><font size="3">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><div align="right"><font size="3">40</font></div></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="3">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements
of Operations</font></td>
<td>&nbsp;</td>
<td align=left><font size="3">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><div align="right"><font size="3">43</font></div></td>
</tr>
<tr valign=top><td align=left><font size="3">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements
of Changes in Net Assets</font></td>
<td>&nbsp;</td>
<td align=left><font size="3">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><div align="right"><font size="3">46</font></div></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="3">Financial Highlights</font></td>
<td>&nbsp;</td>
<td align=left><font size="3">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><div align="right"><font size="3">52</font></div></td>
</tr>
<tr valign=top><td align=left><font size="3">Notes to Financial Statements</font></td>
<td>&nbsp;</td>
<td align=left><font size="3">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><div align="right"><font size="3">66</font></div></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="3">Dividend Reinvestment
Plans</font></td>
<td>&nbsp;</td>
<td align=left><font size="3">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><div align="right"><font size="3">72</font></div></td>
</tr>
<tr valign=top><td align=left><font size="3">Additional Information</font></td>
<td>&nbsp;</td>
<td align=left><font size="3">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><div align="right"><font size="3">72</font></div>  </table>
<p>
<p>
<p>
<hr noshade>
<p align="center">
<font size="2"><b>Privacy Principles of the Trusts</b>
</font>
<p><font size="2">The Trusts are committed to maintaining the privacy of
shareholders and to safeguarding their non-public personal information. The following
information is provided to help you understand what personal information the Trusts
collect, how we protect that information and why, in certain cases, we may share
information with select other parties.
</font><p><font size="2">Generally, the Trusts do not receive any non-public personal
information relating to their shareholders, although certain non-public personal
information of shareholders may become available to the Trusts. The Trusts do not
disclose any non-public personal information about their shareholders or former
shareholders to anyone, except as permitted by law or as is necessary in order to
service shareholder accounts (for example, to a transfer agent or third party administrator).
</font>
<p><font size="2">The Trusts restrict access to non-public personal information
    about their shareholders to BlackRock employees with a legitimate business
    need
for the information. The Trusts maintain physical, electronic and procedural
    safeguards designed to protect the non-public personal information of their
    shareholders.</font>
<hr noshade>
<p>
<p>
<HR noshade size=4><PAGE>

<p align="center"><font size="3"><b>LETTER TO SHAREHOLDERS</b>
</font>
<p align='right'><font size="3">February 29, 2004
</font><p><font size="3">Dear Shareholder:
</font><p><font size="3">We are pleased to report that during the semi-annual period,
the Trusts continued to provide monthly income, as well as the opportunity to invest
in various portfolios of municipal securities. This report contains the Trusts&#146;
unaudited financial statements and a listing of the portfolios&#146; holdings.
</font><p><font size="3">The portfolio management team continuously monitors the
municipal bond market and adjusts the portfolios in order to gain exposure to various
issuers, revenue sources and security types. This strategy enables the Trusts to
move among different sectors, credits and coupons to capitalize on changing market
conditions.
</font><p><font size="3">The following table shows the Trusts&#146; current yields,
tax-equivalent yields, closing market prices per share and net asset values (&#147;NAV&#148;)
per share as of February 29, 2004.
</font><p><p>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Tax-</b></font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Closing</b></font></td>
<td>&nbsp;</td>
<td align=center></td>

</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;Current</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Equivalent</b></font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Market</b></font></td>
<td>&nbsp;</td>
<td align=center></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;Trust (Ticker)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Yield</b><sup><b>1</b></sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Yield</b><sup><b>1</b></sup></font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Price</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>NAV</b></font></td>
</tr>
<tr valign=top>
  <td colspan="11" align=left><hr noshade></td>
  </tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">BlackRock Insured
Municipal Income Trust (BYM)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">6.38%</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"><font size="2">9.81%</font></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">$14.70&nbsp;&nbsp;&nbsp;</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">$15.31&nbsp;&nbsp;</font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">BlackRock Municipal Bond Trust
(BBK)</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6.91</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10.62</font></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"></div></td>
<td align=right><div align="center"><font size="2">15.01</font></div></td>
<td align=right><div align="center"></div></td>

<td align=right><div align="center"><font size="2">15.69</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">BlackRock Municipal
Income Trust II (BLE)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">6.92</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">10.64</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">14.53</font></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"></div></td>

<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">14.98</font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">BlackRock California Insured
Municipal Income Trust (BCK)</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6.28</font></div></td>
<td><div align="center"></div></td>
<td><div align="center"><font size="2">9.66</font></div></td>
<td align=right><div align="center"></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">14.34</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">14.82</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">BlackRock California
Municipal Bond Trust (BZA)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">6.72</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">10.33</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">14.23</font></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"></div></td>

<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">15.22</font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">BlackRock California Municipal
Income Trust II (BCL)</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6.98</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10.74</font></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"></div></td>
<td align=right><div align="center"><font size="2">13.96</font></div></td>
<td align=right><div align="center"></div></td>

<td align=right><div align="center"><font size="2">14.41</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">BlackRock Florida
Insured Municipal Income Trust (BAF)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">6.02</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">9.26</font></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">14.95</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">15.03</font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">BlackRock Florida Municipal Bond
Trust (BIE)</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6.21</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9.55</font></div></td>
<td align=right><div align="center"></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">15.04</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">15.77</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">BlackRock Maryland
Municipal Bond Trust (BZM)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">5.46</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">8.40</font></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">15.69</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">15.61</font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">BlackRock New Jersey Municipal
Bond Trust (BLJ)</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6.32</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9.72</font></div></td>
<td align=right><div align="center"></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">14.93</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">15.33</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">BlackRock New
York Insured Municipal Income Trust (BSE)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">6.14</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">9.44</font></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">14.66</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">15.08</font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">BlackRock New York Municipal
Bond Trust (BQH)</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6.37</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9.80</font></div></td>
<td align=right><div align="center"></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">14.52</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">15.53</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">BlackRock New
York Municipal Income Trust II (BFY)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">6.53</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">10.05</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"></div></td>
<td bgcolor="#DDDDDD"><div align="center"><font size="2">14.47</font></div></td>
<td align=right bgcolor="#DDDDDD"><div align="center"></div></td>

<td bgcolor="#DDDDDD"><div align="center"><font size="2">14.91</font></div></td></tr>
<tr valign=top><td align=left><font size="2">BlackRock Virginia Municipal
Bond Trust (BHV)</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5.30</font></div></td>
<td><div align="center"></div></td>
<td><div align="center"><font size="2">8.15</font></div></td>
<td align=right><div align="center"></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">16.40</font></div></td><td><div align="center"></div></td><td><div align="center"><font size="2">16.00</font> </div></td>
</tr></table>

<p><font size="2"><font size="2"><sup>1</sup> Yields are based on closing market
      price. Tax-equivalent yield assumes the maximum
Federal tax rate of 35%.</font></font>
<p><font size="2"><font size="3">BlackRock,
  Inc. (&#147;BlackRock&#148;), a world leader in asset management, has a proven
  commitment
  to the municipal bond ma</font></font><font size="3">rket. As of December 31, 2003, BlackRock managed approximately
  $18 billion in municipal bonds, including six open-end and 37 closed-end municipal
  bond funds. BlackRock is recognized for its emphasis on risk management and proprietary
  analytics and for its reputation managing money for the world&#146;s largest institutional
  investors. BlackRock Advisors, Inc., which manages the Trusts, is a wholly owned
  subsidiary of BlackRock.
  </font>
<p><font size="3">On behalf of BlackRock, we thank you for your continued
trust and assure you that we remain committed to excellence in managing your assets.
</font><p><font size="3">Sincerely,
</font><p>
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font>
<table width="100%" border="0">
  <tr>
    <td width="21%"><img src="cfink.jpg"></td>
    <td width="9%">&nbsp;</td>
    <td width="70%"><font size="3"><img src="cschlosstein.jpg"></font></td>
  </tr>
  <tr>
    <td><font size="3">Laurence D. Fink&nbsp;<br>
    Chief Executive Officer&nbsp;<br>
    BlackRock
Advisors, Inc.&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="3">Ralph L.
Schlosstein<br>
President<br>
BlackRock Advisors, Inc.</font></td>
  </tr>
</table>

<p><font size="3">&nbsp;&nbsp;&nbsp;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;</font>
<p><p>
<p><p align='center'>1<HR noshade size=4><PAGE><p><font size="3"><b>TRUST
SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY 29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Insured Municipal Income Trust (BYM)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on New York Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BYM</font></td>

</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">October 31, 2002</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.70</font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.31</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($14.70):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.38%</font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.078125</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.937500</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>36%</font>
</table>
<p align='justify'>

<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).
</font><p align='justify'><font size="2">The table below summarizes the changes
in the Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.70</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.51</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">8.81%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.84</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.39</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.31</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.64</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12.24%</font></td>
<td>&nbsp;</td><td><div align="center"><font size=2>$15.33</font></div></td>
<td>&nbsp;</td>
<td align=center><font size=2>$13.51</font></td><td>&nbsp;</td></tr></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments:</font>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="27%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="37%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="34%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="0%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">27%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">33%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Water &amp; Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">24</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">19</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">City, County &amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">12</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">8</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">3</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tax Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">6</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">1</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Industrial &amp; Pollution Control</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td><td><div align="center">&#151;</div></td><td><div align="center"></div></td>
<td align=right><div align="center"><font size=2>3</font></div></td><td>&nbsp;</td></tr></table>
<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">83%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">83%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">7</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td><td><div align="center"><font size=2>13</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size=2>10</font></div></td><td>&nbsp;</td></tr></table>
<hr align="left" width="150" size="1">
<font size="2"><sup>4</sup> Using the higher of Standard &amp; Poor&#146;s (&#147;S&amp;P&#146;s&#148;),
Moody&#146;s Investors Service (&#147;Moody&#146;s&#148;) or Fitch Ratings (&#147;Fitch&#146;s&#148;)
rating.</font>
<p><p><p><p align='center'>2<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Municipal Bond Trust (BBK)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on New York Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBK</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">April 30, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.01</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.69</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($15.01):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.91%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.086375</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sizeLeverage a36%>$&nbsp;1.036500</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>36%</font>
  </table>
<p><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='left'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3
</sup>As a percentage of managed assets (as defined herein).</font>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.01</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.66</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">9.88%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.25</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.65</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.69</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.12</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11.12%</font></td>
<td>&nbsp;</td><td><div align="center"><font size=2>$15.73</font></div></td>
<td>&nbsp;</td>
<td align=center><font size=2>$14.02</font></td><td>&nbsp;</td></tr></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='center'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="27%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="37%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="34%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="0%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">19%</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">20%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Industrial &amp; Pollution Control</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">19</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">26</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">City, County
&amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">12</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">14</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">8</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tax Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">&#151;</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Water &amp;
Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">1</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">1</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Other</font></td>
<td>&nbsp;</td><td><div align="center"><font size="2">5</font></div></td><td><div align="center"><font size="2"></font></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td><td>&nbsp;</td></tr></table>
<p align='justify'>
<div align="center"><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
</div>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">25%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">27%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">&#151;</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">20</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">23</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">39</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">32</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">B</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Not Rated<sup>5</sup></font></td>
<td>&nbsp;</td><td><div align="center"><font size="2">11</font></div></td><td><div align="center"><font size="3"><font size="2"></font></font></div></td>
<td align=right><div align="center"><font size=2>9</font></div></td><td>&nbsp;</td></tr></table>
<p align='justify'><hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.
</font>
<p><font size="2"><sup>5</sup> The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of February 29, 2004,
the market value of these securities was $18,706,918 representing 8.2% of the Trust&#146;s
long-term investments. </font>
<p><p><p><p><p align='center'>3<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Municipal Income Trust II (BLE)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on American Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BLE</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">July 30, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.53</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.98</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
<td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($14.53):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.92%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.08375</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sizLeverage a38%>$&nbsp;1.00500</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>38%</font>
  </table>
<p align='justify'>
<p><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.53</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.11</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10.83%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.72</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.12</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.98</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.28</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12.80%</font></td>
<td>&nbsp;</td><td><div align="center"><font size=2>$15.02</font></div></td>
<td>&nbsp;</td>
<td align=center><font size=2>$13.17</font></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='center'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="28%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="36%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="34%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="0%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">22%</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">22%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Industrial &amp; Pollution Control</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">19</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">18</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">City, County
&amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">15</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">12</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">12</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tax Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">7</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">&#151;</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Water &amp;
Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td><td><div align="center"><font size="2">1</font></div></td><td><div align="center"><font size="2"></font></div></td>
<td align=right><div align="center"><font size="2">2</font></div></td><td>&nbsp;</td></tr></table>
<p align='justify'>
<p align='justify'>
<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">24%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">28%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">7</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">7</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">14</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">20</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">36</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">27</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">B</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">CCC/Caa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Not Rated<sup>5</sup></font></td>
<td>&nbsp;</td><td><div align="center"><font size="2">13</font></div></td><td><div align="center"><font size="2"></font></div></td>
<td align=right><div align="center"><font size=2>12</font></div></td><td>&nbsp;</td></tr></table>
<p align='justify'>
<hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.
</font>
<p><font size="2"><sup>5</sup> The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of February 29, 2004,
the market value of these securities was $14,048,640 representing 2.7% of the Trust&#146;s
long-term investments. </font>
<p><p><p><p><p align='center'>4<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b> </font><hr noshade size=3>
<p><font size="3"><b> BlackRock California Insured Municipal Income Trust (BCK)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on the New York Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BCK</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">October 31, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.34</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.82</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($14.34):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.28%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.075</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sLeverage a37%>$&nbsp;0.900</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>37%</font>
  </table>
<p align='justify'>

<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.34</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.01</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10.22%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.54</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.03</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.82</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.09</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">13.22%</font></td>
<td>&nbsp;</td><td><div align="center"><font size=2>$14.83</font></div></td>
<td>&nbsp;</td
><td align=center><font size=2>$12.94</font><tr><td>&nbsp;</td></tr></table>
<p align='justify'><p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='center'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="27%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="37%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="33%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="1%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Water &amp;
Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">30%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">30%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">24</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">23</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">11</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">City, County &amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">7</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tax Revenue</font></td>
<td>&nbsp;</td><td><div align="center">&#151;</div></td><td>&nbsp;</td>
<td align=right><div align="center"><font size=2>4</font></div></td><td>&nbsp;</td></tr></table>
<p align='justify'>
<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">83%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">84%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">6</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">11</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10</font></div></td></tr></table>
<p align='justify'><hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.</font><p><p><p><p align='center'>5<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock California Municipal Bond Trust (BZA)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on New York Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BZA</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">April 30, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.23</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.22</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($14.23):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.72%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.079656</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sizeLeverage a37%>$&nbsp;0.955872</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>37%</font>
  </table>
<p align='justify'>

<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.23</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.15</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">8.21%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.52</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.13</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.22</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.71</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11.01%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.23</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.59</font></td>
</tr></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='justify'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="28%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="36%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="34%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="0%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">25%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">24%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">18</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">17</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">14</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">15</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">12</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">11</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">City, County
&amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">12</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">7</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">1</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Water &amp; Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">3</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Industrial
&amp; Pollution Control</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">&#151;</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Other</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td></tr></table>
<p align='justify'>
<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">23%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">23%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">&#151;</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">20</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">31</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">31</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">24</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">B</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Not Rated<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">20</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">20</font></div></td>
</tr></table>
<p align='justify'>
<hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.
</font>
<p><font size="2"><sup>5</sup> The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of February 29, 2004,
the market value of these securities was $10,224,816 representing 13.4% of the Trust&#146;s
long-term investments. </font>
<p><p><p><p><p align='center'>6<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock California Municipal Income Trust II (BCL)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on American Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BCL</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">July 30, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.96</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.41</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($13.96):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.98%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.08125</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sizLeverage a38%>$&nbsp;0.97500</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>38%</font>
  </table>
<p align='justify'>

<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.96</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.01</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">7.30%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.99</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.00</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.41</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$12.76</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12.93%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.43</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$12.62</font></td>
</tr></table>
<p align='justify'>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='center'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="27%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="37%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="34%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="0%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">City, County
&amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">27%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">25%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">13</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">13</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">11</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">19</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">11</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">8</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Water &amp;
Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Industrial &amp; Pollution Control</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">1</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">1</font></div></td></tr></table>
<p align='justify'>

<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">37%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">47%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">&#151;</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">14</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">19</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">23</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">13</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">B</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">1</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">1</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Not Rated<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">20</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">20</font></div></td></tr></table>
<br>
<hr align="left" width="150" size=1 noshade>
<p align='justify'><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating. </font>

<p><font size="2"><sup>5</sup> The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of February 29, 2004,
the market value of these securities was $8,528,630 representing 4.7% of the Trust&#146;s
long-term investments. </font>
<p><p><p><p><p align='center'>7<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Florida Insured Municipal Income Trust (BAF)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on New York Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BAF</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">October 31, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.95</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.03</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($14.95):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.02%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.075</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sLeverage a37%>$&nbsp;0.900</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>37%</font>
  </table>
<p align='justify'>
<p><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.95</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.20</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">13.26%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.07</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.31</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.03</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.74</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">9.39%</font></td>
<td>&nbsp;</td>
<td align=center>  <font size="2">$15.03</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.60</font></td>
</tr></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='justify'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="27%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="37%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="33%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="1%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tax Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">22%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">22%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">City, County &amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">22</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">25</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">16</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">16</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">12</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">13</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">8</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Water &amp; Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">8</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">6</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Hospital</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">7</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">8</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">1</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">1</font></div></td>
</tr></table>
<p align='justify'>
<p align='justify'>

<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">83%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">82%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Not Rated<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td></tr></table>
<p align='justify'><hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.
</font>
<p><font size="2"><sup>5</sup> The investment advisor had deemed all of these non-rated
securities to be of investment grade quality at the time of purchase.</font><p><p>
<p><p align='center'>8<HR noshade size=4><PAGE><p><font size="3"><b>TRUST
SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY 29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Florida Municipal Bond Trust (BIE)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td align=left><font size="2"><font size="2">Symbol on New York Stock Exchange:</font></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">BIE</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top bgcolor='#DDDDDD'>
    <td align=left><font size="2">Initial Offering Date:</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">April 30, 2002</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">$15.04</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top bgcolor='#DDDDDD'>
    <td align=left><font size="2">Net Asset Value as of 2/29/04:</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">$15.77</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Yield on Closing Market Price as of 2/29/04
        ($15.04):<sup>1</sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">6.21%</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top bgcolor='#DDDDDD'>
    <td align=left><font size="2">Current Monthly Distribution per Common Share:<sup>2</sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">$ 0.077808</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Current Annualized Distribution per Common
        Share:<sup>2</sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2" sizeleverage a36%>$&nbsp;0.933696</font>
  <tr valign=top>
    <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2" sizleverage a38%>36%</font>
</table>
<p>
<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price. </font>
<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.04</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.55</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11.00%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.09</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.50</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.77</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.52</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">8.61%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.77</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.41</font></td>
</tr></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='justify'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="28%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="36%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="34%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="0%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">24%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">24%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">City, County &amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">18</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">14</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tax Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">16</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">16</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">12</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">8</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">7</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Water &amp; Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">7</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">7</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Industrial &amp; Pollution Control</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">&#151;</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Other</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td></tr></table>
<p align='justify'>
<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">40%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">41%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">17</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">17</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">23</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">21</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">7</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Not Rated<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">17</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">14</font></div></td></tr></table>
<p align='justify'>
<hr align="left" width="150" size="1" noshade>
<p align='justify'><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating. </font>
<p><font size="2"><sup>5</sup> The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of February 29, 2004,
the market value of these securities was $3,223,860 representing 4% of the Trust&#146;s
long-term investments. </font>
<p><p><p><p><p align='center'>9<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Maryland Municipal Bond Trust (BZM)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on American Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BZM</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">April 30, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.69</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.61</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($15.69):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">5.46%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.07135</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sizLeverage a36%>$&nbsp;0.85620</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>36%</font>
  </table>
<p align='justify'>
<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.69</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.90</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12.88%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.69</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.73</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.61</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.36</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">8.70%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.61</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.24</font></td>
</tr></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='justify'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="27%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="37%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="33%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="1%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">24%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">26%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">17</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">17</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">City, County
&amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">13</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">11</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Water &amp; Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">12</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">12</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">8</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">8</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">3</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Other</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td></tr></table>
<p align='justify'>
<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">35%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">34%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">12</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">36</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">36</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">11</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">11</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Not Rated<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">7</font></div></td></tr></table>
<p align='justify'><hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.
</font>
<p><font size="2"><sup>5</sup> The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of February 29, 2004,
the market value of these securities was $2,149,240 representing 4.5% of the Trust&#146;s
long-term investments. </font>
<p><p><p><p><p align='center'>10<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock New Jersey Municipal Bond Trust (BLJ)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on American Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BLJ</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">April 30, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.93</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.33</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($14.93):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.32%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.078582</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sizeLeverage a37%>$&nbsp;0.942984</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>37%</font>
  </table>
<p align='justify'>

<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.93</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.64</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">9.46%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.98</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.65</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.33</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.77</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11.33%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.37</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.66</font></td>
</tr></table>
<p align='justify'>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments:
</font>
<p align='justify'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td width="27%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
    <td width="1%">&nbsp;</td>
    <td width="37%" align=center><font size="2"><b>February 29, 2004</b></font></td>
    <td width="1%">&nbsp;</td>
    <td width="34%" align=center><font size="2"><b>August 31, 2003</b></font></td>
    <td width="0%">&nbsp;</td>
  </tr>
  <tr valign=top bgcolor='#DDDDDD'>
    <td align=left><font size="2">Hospitals</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">26%</font></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><font size="2">24%</font></div>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Transportation</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">17</font></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><font size="2">17</font></div>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top bgcolor='#DDDDDD'>
    <td align=left><font size="2">Tobacco</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">11</font></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><font size="2">11</font></div>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">City, County &amp; State</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">10</font></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><font size="2">5</font></div>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top bgcolor='#DDDDDD'>
    <td align=left><font size="2">Housing</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">9</font></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><font size="2">15</font></div>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Tax Revenue</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">6</font></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><font size="2">5</font></div>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top bgcolor='#DDDDDD'>
    <td align=left><font size="2">Education</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">5</font></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><font size="2">5</font></div>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Lease Revenue</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">4</font></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><font size="2">5</font></div>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top bgcolor='#DDDDDD'>
    <td align=left><font size="2">Power</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">4</font></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><font size="2">5</font></div>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Industrial &amp; Pollution Control</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">4</font></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><font size="2">4</font></div>
    </td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top bgcolor='#DDDDDD'>
    <td align=left><font size="2">Other</font></td>
    <td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>
  </tr>
</table>
<p align='justify'>
<p align='justify'>

<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">27%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">28%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">30</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">31</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">33</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">33</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">B</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Not Rated<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">6</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td></tr></table>
<p align='justify'><hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.
</font>
<p><font size="2"><sup>5</sup> The investment advisor has deemed all of these non-rated
securities to be of investment grade quality. </font>
<p><p><p><p><p align='center'>11<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock New York Insured Municipal Income Trust (BSE)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on New York Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BSE</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">October 31, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.66</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.08</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($14.66):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.14%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.075</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sLeverage a37%>$&nbsp;0.900</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>37%</font>
  </table>
<p align='justify'>

<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.66</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.28</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10.39%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.83</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.19</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.08</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.45</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12.12%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.10</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.31</font></td>
</tr></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='justify'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="27%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="0%">&nbsp;</td>
<td width="38%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="33%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="1%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">33%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">33%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">28</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">29</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">13</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">14</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">11</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tax Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">7</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Water &amp; Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">3</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">1</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">1</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">&#151; </font></div></td></tr></table>
<p align='justify'>
<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p>
<table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">81%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">82%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">2</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">2</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">8</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">7</font></div></td></tr></table>
<p align='justify'>
<hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.</font><p><p><p><p align='center'>12<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock New York Municipal Bond Trust (BQH)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on New York Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BQH</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">April 30, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.52</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.53</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($14.52):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.37%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.077099</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sizeLeverage a37%>$&nbsp;0.925188</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>37%</font>
  </table>
<p align='justify'>
<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.52</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.35</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">8.76%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.60</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.35</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.53</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.15</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">9.75%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$15.57</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.04</font></td>
</tr></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='justify'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="28%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="36%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="34%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="0%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">13%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">14%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">12</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">12</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">12</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">11</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">11</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">11</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">City, County
&amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">10</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Water &amp;
Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Tax Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">8</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">8</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Industrial
&amp; Pollution Control</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">3</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Other</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td></tr></table>
<p align='justify'>
<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p>
<table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">21%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">21%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">25</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">26</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">38</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">38</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">7</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">7</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">B</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">1</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">&#151;</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">CCC/Caa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Not Rated<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td></tr></table>
<p align='justify'>
<hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.
</font>
<p><font size="2"><sup>5</sup> The investment advisor has deemed all of these non-rated
securities to be of investment grade quality. </font><p><p>
<p><p align='center'>13<HR noshade size=4><PAGE><p><font size="3"><b>TRUST
SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY 29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock New York Municipal Income Trust II (BFY)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on American Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BFY</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">July 30, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.47</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.91</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($14.47):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">6.53%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.07875</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left><font size="2">Current Annualized Distribution per Common Share:<sup>2</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>$0.94500</font>
  <tr valign=top>
<td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sizLeverage a38%>38%</font>
</table>
<p align='justify'>
<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.47</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.12</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10.29%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.49</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.11</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.91</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.36</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11.60%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.94</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$13.24</font></td>
</tr></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='justify'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="27%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="37%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="33%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="1%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">21%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">23%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">21</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">21</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">11</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">10</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Industrial &amp; Pollution Control</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">11</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">City, County &amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">8</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Tax Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">9</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">9</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Water &amp; Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Power</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">1</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">1</font></div></td></tr></table>
<p align='justify'>
<p align='justify'>

<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">16%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">21%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">46</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">45</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">30</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">27</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">B</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">1</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">&#151;</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">CCC/Caa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">3</font></div></td></tr></table>
<p align='justify'><hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.</font><p><p><p><p align='center'>14<HR noshade size=4><PAGE><p>
<font size="3"><b>TRUST SUMMARIES </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Virginia Municipal Bond Trust (BHV)
</b></font><p align='center'><font size="3"><b>Trust Information</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td align=left><font size="2"><font size="2">Symbol
on American Stock Exchange:</font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BHV</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Initial Offering
Date:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">April 30, 2002</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Closing Market Price as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$16.40</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Net Asset Value
as of 2/29/04:</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$16.00</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Yield on Closing Market Price
as of 2/29/04 ($16.40):<sup>1</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">5.30%</font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Current Monthly
Distribution per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$ 0.072428</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Current Annualized Distribution
per Common Share:<sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=center><font size="2" sizeLeverage a36%>&nbsp;$&nbsp;0.869136</font>
<tr valign=top>
  <td align=left><font size="2">Leverage as of 2/29/04:<sup>3</sup></font></td>
  <td>&nbsp;</td>
  <td align=center><font size="2" sizLeverage a38%>36%</font>
  </table>
<p align='justify'>

<p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1
</sup>Yield on closing market price is calculated by dividing the current annualized
distribution per share by the closing market price.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2
</sup>The distribution is not constant and is subject to change.
</font><p align='justify'><font size="2"><sup>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3</sup>
As a percentage of managed assets (as defined herein).</font>
<p align='justify'>
<p align='justify'><font size="2">The table below summarizes the changes in the
Trust&#146;s market price and NAV:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">2/29/04</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>8/31/03</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Change</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>High</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Low</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Market Price</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$16.40</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.40</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">13.89%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$17.25</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.30</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">NAV</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$16.00</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.46</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10.65%</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$16.00</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">$14.35</font></td>
</tr></table>
<p align='justify'>
<p align='justify'><font size="2">The following charts show the asset composition
and credit quality allocations of the Trust&#146;s long-term investments: </font>
<p align='justify'>
<p align='center'><font size="3"><b>Sector Breakdown</b></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="28%" align=left><font size="2"><b><font size="2">Sector</font></b></font></td>
<td width="1%">&nbsp;</td>
<td width="36%" align=center><font size="2"><b>February 29, 2004</b></font></td>
<td width="1%">&nbsp;</td>
<td width="34%" align=center><font size="2"><b>August 31, 2003</b></font></td>

<td width="0%">&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Water &amp;
Sewer</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">19%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">19%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">City, County &amp; State</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">17</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">17</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Transportation</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">17</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">16</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Hospitals</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">15</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">19</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Housing</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">12</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">13</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Education</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">5</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">5</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Lease Revenue</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Tobacco</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">3</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Industrial
&amp; Pollution Control</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">3</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">&#151;</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Other</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">4</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">4</font></div></td></tr></table>
<p align='justify'>

<p align='center'><font size="3"><b>Credit Breakdown</b><sup><b>4</b></sup></font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td align=left><font size="2"><b><font size="2">Credit
Rating</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">AAA/Aaa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">47%</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">47%</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">AA/Aa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">16</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">16</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">15</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">21</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">BBB/Baa</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">7</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">3</font></div></td>

<td>&nbsp;</td></tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Not Rated<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">15</font></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><font size="2">13</font></div></td></tr></table>
<p align='justify'><hr align="left" width="150" size="1" noshade>
<p><font size="2"><sup>4</sup> Using the higher of S&amp;P&#146;s, Moody&#146;s
or Fitch&#146;s rating.
</font>
<p><font size="2"><sup>5</sup> The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of February 29, 2004,
the market value of these securities was $4,196,460 representing 11.2% of the Trust&#146;s
long-term investments.</font><p><p><p><p align='center'>15
<HR noshade size=4><PAGE>
<p><font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Insured Municipal Income Trust (BYM)</b></font>
<p><p>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;153.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Alabama&#151;11.5%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$40,000 <sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Jefferson Cnty. Swr. Rev., Ser. D,
5.00%, 8/01/12, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  45,924,880</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>California&#151;40.1%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">19,530</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California, GO, 5.00%, 2/01/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20,302,411</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">14,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California Dept. of Wtr. Res., Pwr.
Sply. Rev., Ser. A, 5.375%, 5/01/22</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">14,914,620</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Infrastructure &amp; Econ.
Dev., Bay Area Toll Brdgs., Ser. A, AMBAC,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">17,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.00%, 7/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">17,844,220</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.00%, 7/01/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,496,600</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Golden St. Tobacco Sec. Corp.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. A-1, 6.625%, 6/01/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,212,570</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,195</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. B, 5.00%, 6/01/38, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,262,123</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">22,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. B, 5.00%, 6/01/43, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">23,119,650</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Los Angeles Dept. of Wtr. &amp; Pwr.,
Pwr. Sys. Rev., Ser. A-2, 5.00%, 7/01/27, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,248,300</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Unified Sch. Dist., Ser.
A, 5.00%, 1/01/28, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,244,400</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">17,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Met. Wtr. Dist. Southern California,
Ser. B-1, 5.00%, 10/01/33, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">18,388,825</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Joaquin Hills Transp. Corridor
Agcy., Toll Road Rev., Ser. A, MBIA,</font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">53,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero Coupon, 1/15/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">13,484,790</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">48,690</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero Coupon, 1/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,740,620</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,910</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Univ. of California, Ser. O, 5.00%,
9/01/28, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">09/10 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">11,414,151</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">160,673,280</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Georgia&#151;7.2%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Atlanta Wtr. &amp; Wstwtr., Ser.
A,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,555</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.00%, 11/01/38, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/09 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,880,921</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,145</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.00%, 11/01/39, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,466,402</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">Baa1</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">De Kalb Cnty. Dev. Auth., PCR, General
Mtrs. Corp. Proj., 6.00%, 3/15/21</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">12/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,532,600</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">28,879,923</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Illinois&#151;10.6%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,550</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Chicago Spec. Transp., 5.25%, 1/01/31,
AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,241,845</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,150</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Chicago Wtr., 5.00%, 11/01/31, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/11 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,449,662</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Met. Pier &amp; Exposition Auth.,
Dedicated St. Tax Rev., McCormick Place Expansion Proj., MBIA,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. A, Zero Coupon, 12/15/25</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,312,000</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">30,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. A, Zero Coupon, 12/15/29</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,028,300</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">25,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. A, Zero Coupon, 6/15/35</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,940,500</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. B, Zero Coupon, 6/15/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,344,750</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">42,317,057</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Indiana&#151;2.5%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">AAA</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,400</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New Albany-Floyd Cnty. Sch. Bldg.
Corp., 5.125%, 1/15/27, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,860,506</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Massachusetts&#151;10.9%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Massachusetts Tpke. Auth., Met. Hwy.
Sys. Rev., Ser. A,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,735 <sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.00%, 1/01/37, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/07 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17,094,468</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">26,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.00%, 1/01/39, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/09 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">26,639,340</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">43,733,808</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Michigan&#151;1.3%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Detroit City Sch. Dist., GO, Ser.
A, 5.125%, 5/01/31, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,257,250</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Nevada&#151;7.2%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Reno Transp. Proj., 5.125%, 6/01/32,
AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,285,900</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Truckee Meadows Wtr. Auth., Ser.
A, FSA,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.00%, 7/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,442,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.125%, 7/01/30</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/11 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,808,815</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.25%, 7/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,286,100</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">28,822,915</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>New Jersey&#151;3.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Tobacco Settlement Fin. Corp.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  6.125%, 6/01/24</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,997,960</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,670</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  7.00%, 6/01/41</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,763,363</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top>
  <td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><div align="right"><font size="2">12,761,323</font></div></td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
</tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
</table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p align='center'>16
<HR noshade size=4><PAGE>

<p>
<hr noshade size=3>
<p><font size="3"><b> BlackRock Insured Municipal Income Trust (BYM) (continued)</b></font>
<p><p>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>New York&#151;2.9%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">AAA</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$11,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Triborough Brdg. &amp; Tunl. Auth.,
Ser. E, 5.00%, 11/15/32, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  11,555,830</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>Pennsylvania&#151;8.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">BBB+</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Lebanon Cnty. Hlth. Facs. Auth.,
Good Samaritan Hosp. Proj., 6.00%, 11/15/35</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,150,250</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,560</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Pennsylvania Tpke. Comm., 5.00%,
7/15/41, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,754,803</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Philadelphia Gas Wks., FSA,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. 3, 5.125%, 8/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,429,528</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">16,625</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. 4, 5.00%, 8/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">17,365,478</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">32,700,059</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Rhode Island&#151;0.8%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,510</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tobacco Settlement Fin. Corp., Ser.
A, 6.25%, 6/01/42</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,212,317</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>South Carolina&#151;14.2%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">So. Carolina Pub. Svc. Auth., Ser.
B, 5.50%, 1/01/36, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,437,150</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">So. Carolina Transp. Infrastructure
Bank, AMBAC,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000 <sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. A, 5.00%, 10/01/11</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,416,420</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">12,750</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. A, 5.00%, 10/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">13,312,403</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,660</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. B, 5.125%, 10/01/26</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,405,547</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">15,385</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Tobacco Settlement Rev. Mgmt. Auth.,
Ser. B, 6.375%, 5/15/28</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/11 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">14,506,055</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">57,077,575</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>South Dakota&#151;1.0%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,165</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Edl. Enhancement Fdg. Corp., Tobacco
Settlement, Ser. B, 6.50%, 6/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,978,158</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Tennessee&#151;3.5%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Knox Cnty. Hlth. Edl. &amp; Hsg.
Facs. Brd., Hosp. Facs. Rev., Ser. A, FSA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">11,705</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero Coupon, 1/01/22</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/13 @ 59.566</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,466,862</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,260</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero Coupon, 1/01/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 56.016</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,308,228</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero Coupon, 1/01/24</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/13 @ 52.749</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,844,185</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,850</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero Coupon, 1/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 49.712</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,153,982</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero Coupon, 1/01/26</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/13 @ 46.781</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,475,350</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,248,607</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Texas&#151;11.5%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,700</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Comal Cnty. Hlth. Facs., Hlth. Care
Sys., McKenna Mem. Proj., Ser. A, 6.25%, 2/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,805,117</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Harris Cnty.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,485</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  GO, Zero Coupon, 8/15/25, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,542,580</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,915</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  GO, Zero Coupon, 8/15/28, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,142,319</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,510</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Toll Road Rev., 5.00%, 8/15/30,
FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,738,114</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Harris Cnty. Sports Auth., Ser. H,
MBIA,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,785</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero Coupon, 11/15/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/31 @ 64.91</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">825,924</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,160</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero Coupon, 11/15/39</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/31 @ 60.976</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">825,748</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Houston Wtr. &amp; Swr. Sys., Ser.
A, 5.00%, 12/01/30, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">26,064,500</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB+</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Tyler Cnty. Hlth. Facs. Dev., Mother
Frances Hosp., 6.00%, 7/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,121,890</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">46,066,192</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Virginia&#151;2.9%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Chesterfield Cnty. Indl. Dev. Auth.,
PCR, Elec. &amp; Pwr. Co.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A3</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. A, 5.875%, 6/01/17</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/10 @ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,294,540</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. B, 5.875%, 6/01/17</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/10 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,392,720</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,640</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Hampton Convention Center, 5.00%,
1/15/35, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,818,724</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,505,984</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Washington&#151;10.9%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,655</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Chelan Cnty. Pub. Util. Dist. 1,
Chelan Hydro Sys., Ser. C, 5.125%, 7/01/33, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,830,696</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,450</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">King Cnty. Swr., 5.00%, 1/01/31,
FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,695,487</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Seattle, GO, Ser. F, 5.125%, 12/15/28,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/08 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,794,120</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,545</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Tobacco Settlement Auth., 6.625%,
6/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,259,950</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Washington, GO, FSA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,380</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. A, 5.00%, 7/01/25</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/11 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,641,644</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. B, 5.00%, 1/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,348,570</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">43,570,467</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Wisconsin&#151;2.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">BBB</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">12,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Badger Tobacco Asset Sec. Corp.,
6.375%, 6/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">11,275,440</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$576,955,964)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">613,421,571</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p><p align='center'>17
<HR noshade size=4><PAGE>

<p>
<hr noshade size=3>
<p><font size="3"><b> BlackRock Insured Municipal Income Trust (BYM) (continued)</b></font>
<p>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Shares</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUND&#151;3.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">11,900</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $11,900,000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  11,900,000</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;156.2%
(cost $588,855,964)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 625,321,571</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Other assets in excess of liabilities&#151;1.0%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,039,205</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(57.2)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(229,006,446)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 400,354,330</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>
</table>

<table width="100%" border="0" cellpadding="0" cellspacing="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">This bond is prerefunded. Securities,
held in escrow, are used to pay interest on this security, as well as retire the
bond in full at the maturity date indicated, typically at a premium to par.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td colspan="3" align=left><font size="2">Securities that are covered by
insurance, which ensures the timely payment of principal and interest, represent
approximately 81.4% of the Trust&#146;s total investments.</font></td></tr></table>
<p align="center">
<p><p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font>
</p>
  <p>&nbsp;  </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American Municipal
        Bond
Assurance Corporation&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">&nbsp;GO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; General Obligation</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
    Insurance Company</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
    Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Security
    Assurance</font></td>
    <td>&nbsp;</td>
    <td><font size="2">PCR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Pollution Control
    Revenue</font></td>
  </tr>
</table>
<hr noshade>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p align='center'>18
<HR noshade size=4><PAGE>

<p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Municipal Bond Trust (BBK)</b></font>
<p><p><table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=right><div align="center"><font size="2"><b>Principal</b></font></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=left><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=right><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=right><div align="center"></div></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=right><div align="center"><font size="2"><b>Amount</b></font></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=left><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=right><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><font size="2"><b>Option Call</b></font></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=right><div align="center"></div></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><div align="center"><font size="2"><b>Rating</b><sup><b>1</b></sup></font></div></td>
    <td><div align="center"></div></td>
    <td align=right><div align="center"><font size="2"><b>(000)</b></font></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</div></td>
    <td><div align="center"></div></td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=right><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM
INVESTMENTS&#151;144.5%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Alabama&#151;11.0%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 9,250</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Courtland
Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., Ser. A, 6.50%, 9/01/25</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">09/05
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$  9,616,485</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A2</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Huntsville
Hlth. Care Auth., Ser. A, 5.75%, 6/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/11
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,867,200</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">17,483,685</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>California&#151;13.9%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Golden
St. Tobacco Sec. Corp., Ser. B,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">880</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.00%,
6/01/38, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">906,910</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,300</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.50%,
6/01/43</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">7,369,277</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,200</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.625%,
6/01/38</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,277,742</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">B-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Los
Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. B, 7.50%,
12/01/24</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">7,966,080</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR<sup>3</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,585</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Val
Verde Unified School Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/13
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,605,748</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">22,125,757</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Connecticut&#151;3.1%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Connecticut
Dev. Auth., Connecticut Lt. &amp; Pwr.,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A3</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,200</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  PCR,
Ser. A, 5.85%, 9/01/28</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/08
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,327,468</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,750</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  PCR,
Ser. B, 5.95%, 9/01/28</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">10/08
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,840,002</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">690</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Mohegan
Tribe Indians Gaming Auth., Pub. Impvt., 5.25%, 1/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/14
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">697,542</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,865,012</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Delaware&#151;7.1%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR<sup>3</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,500 <sup>4</sup></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Charter
Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">11,283,510</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>District
of Columbia&#151;10.7%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Dist.
of Columbia,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">595</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Friendship
Pub. Charter Sch. Inc., 5.25%, 6/01/33, ACA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/14
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">610,345</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">33,450</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Georgetown
Univ., Ser. A, Zero Coupon, 4/01/38, MBIA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td><div align="center"><font size="2">04/11
  @ 20.243</font></div></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>

<td><div align="right"><font size="2">4,535,151</font></div></td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Tax
Incr., Gallary Place Proj., 5.40%, 7/01/31, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,428,340</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,580</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Tobacco
Settlement Fin. Corp., 6.75%, 5/15/40</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">05/11
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,389,499</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">16,963,335</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Florida&#151;16.1%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">BBB-</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,200</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Martin
Cnty. Indl. Dev. Auth., Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">12/04
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,401,810</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange
Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">10,577,600</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,255</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Palm
Beach Cnty. Hsg. Fin. Auth., Mult. Fam. Rev., Indian Trace Apts., Ser. A, 5.625%,
    1/01/44, FSA<br>
</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;  </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">01/12 @ 100</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>

<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD"><div align="right"><font size="2">7,549,988</font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Stevens
Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">05/14
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,022,810</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">25,552,208</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Georgia&#151;0.8%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">AAA</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,265</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Atlanta
Wtr. &amp; Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,314,917</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Illinois&#151;18.3%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">AAA</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">23,065</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Bolingbrook,
GO, Ser. B, Zero Coupon, 1/01/36, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD"><div align="center"><font size="2">01/12
  @ 23.018</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>

<td bgcolor="#DDDDDD"><div align="right"><font size="2">3,481,662</font></div></td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,150</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Centerpoint
Intermodal Center, Ser. A, 8.00%, 6/15/23</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,157,061</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,880</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Chicago,
GO, Ser. A, 5.50%, 1/01/38, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/11
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,428,545</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Illinois
Edl. Facs. Auth., Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj.,
    6.25%, 5/01/34<br>
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">05/07 @ 100</font></div></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td><td><div align="right"><font size="2">6,166,860</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Illinois
Hlth. Facs. Auth., Lake Forest Hosp., Ser. A, 5.75%, 7/01/29</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,363,600</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Met.
Pier &amp; Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion
Proj., Ser. A, MBIA,<br>
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero
Coupon, 6/15/35</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No
Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,976,200</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero
Coupon, 12/15/36</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,822,200</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero
Coupon, 12/15/37</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No
Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,723,900</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">29,120,028</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Indiana&#151;1.3%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR<sup>3</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,020</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Mult.
Fam. Hsg., Canterbury House Apts., Ser. 1, 5.90%, 12/01/34</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">12/11
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,008,526</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Kansas&#151;3.4%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Wichita
Arpt. Auth., Arpt. Facs. Rev., Cessna Citation Svc. Ctr., Ser. A, 6.25%, 6/15/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,335,550</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Louisiana&#151;0.7%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,165</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Louisiana
Local Gov. Env., Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,184,490&nbsp;</font></td></tr>
<tr valign=top>
  <td colspan="24" align=left><HR noshade size=1></td>
  </tr>
</table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p align='center'>19
<HR noshade size=4><PAGE>

<p>
<hr noshade size=3>
<p><font size="3"><b> BlackRock Municipal Bond Trust (BBK) (continued)</b></font>
<p>
<p><p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" ><hr noshade></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>Maryland&#151;1.5%</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">NR</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$ 1,250</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Baltimore, Spec. Oblig. Rev., Harborview Lot
        No. 2, 6.50%, 7/01/31</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">07/13 @ 101</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$ 1,296,675</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">BBB</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,040</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">Maryland St. Hlth. &amp; Higher Edl. Facs.
        Auth., Medstar Hlth., 5.50%, 8/15/33</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">08/14 @ 100</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,039,002</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">2,335,677</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>Massachusetts&#151;4.8%</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">AAA</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">7,500<sup> 5</sup></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev.,
        Ser. A, 5.00%, 1/01/37, MBIA</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">01/07 @ 102</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">7,661,100</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>Nevada&#151;0.9%</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">NR</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,400</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Las Vegas Spec. Impvt. Dist. No. 809, Summerlin
        Area, 5.65%, 6/01/23</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">06/04 @ 103</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,388,380</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>New Jersey&#151;14.5%</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">New Jersey Econ. Dev. Auth.,</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">B</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,000</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"> Continental Airlines Inc. Proj., 7.20%, 11/15/30</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">11/10 @ 101</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,872,170</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">Baa3</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">7,500</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2"> Kapkowski Road Landfill Proj., 6.50%, 4/01/28</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">8,685,750</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">BBB</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">11,330</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">Tobacco Settlement Fin. Corp., 7.00%, 6/01/41</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">06/13 @ 100</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">11,429,137</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">22,987,057</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>Ohio&#151;0.9%</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">NR</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Port Greater Cincinnati Dev. Auth., Cooperative
        Pub. Parking Infrastructure Proj., 6.40%, 2/15/34<br>
    </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">02/14 @ 102</font></div></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD"><div align="right"><font size="2">1,499,910</font></div>
    </td>
  </tr>
  <tr valign=top>
    <td colspan='25' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>Oregon&#151;0.6%</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">NR<sup>3</sup></font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Mult. Fam. Hsg., Pacific Tower Apts., Ser.
        6, 6.05%, 11/01/34</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 100</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">988,900</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>Rhode Island&#151;3.3%</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">BBB</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">5,805</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Tobacco Settlement Fin. Corp., Ser. A, 6.25%,
        6/01/42</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 100</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">5,312,678</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>South Carolina&#151;1.4%</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs.
        Rev.,</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">A-</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,000</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"> Bon Secours Hlth. Sys. Inc., Ser. A, 5.625%,
        11/15/30</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">11/12 @ 100</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,019,830</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2"> Palmetto Hlth. Alliance, Ser. C, 7.00%, 8/01/30</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">08/13 @ 100</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,119,770</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,139,600</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2"><b>Texas&#151;22.4%</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><font size="2">BBB</font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,230</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">Brazos River Auth., PCR, TXU Elec Co. Proj.,
        Ser. C, 6.75%, 10/01/38</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">10/13 @ 101</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,339,777</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">11,690</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Harris Cnty. Houston Sports Auth., Ser. G,
        Zero Coupon, 11/15/41, MBIA</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD"><div align="center"><font size="2">11/31 @ 53.779</font></div>
    </td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD"><div align="right"><font size="2">1,380,238</font></div>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">BBB</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,155</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">Matagorda Cnty. Navigation Dist. 1, Collateral
        Centerpoint Energy Proj., 5.60%, 3/01/27</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">03/14 @ 101</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,179,729</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">NR<sup>3</sup></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">2,840</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Mult. Fam. Hsg., Copperwood Ranch Apts., Ser.
        9, 5.95%, 11/01/35</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 100</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">2,820,234</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">BBB</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">10,000</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">Red River Auth., PCR, Celanese Proj., Ser.
        B, 6.70%, 11/01/30</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">05/12 @ 101</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">10,805,100</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Sabine River Auth., PCR, TXU Elec. Co. Proj.,
        Ser. B, 6.15%, 8/01/22</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">08/13 @ 101</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,058,210</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">AAA</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">60,000</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">Texas Tpke. Auth., Central Sys. Rev., Zero
        Coupon, 8/15/35, AMBAC</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td><div align="center"><font size="2">08/12 @ 25.665</font></div>
    </td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2">9,819,600</font></div>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">BBB+</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">6,840</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Tyler Cnty. Hlth. Facs. Dev., Mother Frances
        Hosp., 6.00%, 7/01/31</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 100</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">7,117,909</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">35,520,797</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2"><b>West Virginia&#151;2.2%</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><font size="2">AAA</font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">20,255</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">West Virginia Hsg. Dev. Fund, Hsg. Fin. Rev.,
        Zero Coupon, 11/01/37</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">No Opt. Call</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,551,107</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2"><b>Wisconsin&#151;5.6%</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">Wisconsin Hlth. &amp; Edl. Facs. Auth.,</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">A-</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,350</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2"> Aurora Hlth. Care, 6.40%, 4/15/33</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">04/13 @ 100</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,445,729</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">A</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,000</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"> Wheaton Franciscan Svcs., 5.75%, 8/15/30</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">02/12 @ 101</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">7,419,650</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">8,865,379</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>Total Long-Term Investments (cost $216,065,896)</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">229,487,603</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2"><b>SHORT-TERM INVESTMENTS&#151;10.9%</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>Georgia&#151;1.8%</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">A1+</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">2,800</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">Mun. Elec. Auth., Proj. 1, Ser. C, 0.85%, 3/03/04,
        MBIA, FRWD<sup>6</sup></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">N/A</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">2,800,000</font></td>
  </tr>
  <tr valign=top>
    <td colspan='41' bgcolor="#DDDDDD" ><hr noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2"><b>New York&#151;1.7%</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">A1+</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=left bgcolor="#DDDDDD"><font size="2">New York City, Ser. H, 0.98%, 3/01/04, FSA,
        FRDD<sup>6</sup></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=center bgcolor="#DDDDDD"><font size="2">N/A</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">1,500,000</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">A1+</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">1,200</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><font size="2">New York City Mun. Wtr. Fin. Auth., Wtr. &amp; Swr.
        Sys., Ser. G, 0.98%, 3/01/04, FGIC, FRDD<sup>6</sup><br>
    </font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2">N/A</font></div>
    </td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2">1,200,000</font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" align=left><hr noshade size=1></td>
  </tr>
  <tr valign=top>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2">2,700,000</font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" align=left><hr noshade size=1></td>
  </tr>
</table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p align='center'>20
<HR noshade size=4><PAGE>

<p>
<hr noshade size=3>
<p><font size="3"><b> BlackRock Municipal Bond Trust (BBK) (continued)</b></font>
<p>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><div align="center"><font size="2"><b>Shares</b></font></div></td>
    <td><div align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</div></td>
    <td align=left><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><div align="center"><font size="2"><b>(000)</b></font></div></td>
    <td><div align="center"></div></td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"><font size="2"><b>Value</b></font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUNDS&#151;7.4%</b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,900</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$    7,900,000</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,950</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">SSgA Tax Free Money Mkt. Fund</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,950,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">11,850,000</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Short-Term Investments (cost
$17,350,000)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17,350,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Total Investments&#151;155.4%
(cost $233,415,896)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$246,837,603</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;1.6%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,468,424</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(57.0)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(90,509,006)</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$158,797,021</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=3></td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is deemed to be of investment
grade quality by the investment advisor.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. This security may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 7.1% of its net assets, with a current market value of
$11,283,510, in securities restricted as to resale.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>6</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">For purposes of amortized cost valuation,
the maturity date of this instrument is considered to be the earlier of the next
date on which the security can be redeemed at par, or the next date on which the
rate of interest is adjusted.</font></td><td>&nbsp;</td></tr></table>
<p>
<p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">ACA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
    Capital Access&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">&nbsp;FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial
    Security Assurance</font></td>
  </tr>
  <tr>
    <td><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American Municipal
    Bond Assurance Corporation</font></td>
    <td>&nbsp;</td>
    <td><font size="2">GO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; General Obligation</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
    Insurance Company&nbsp;&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">PCR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Pollution Control
    Revenue</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">FRDD&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Floating Rate
    Daily Demand</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
    Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">FRWD&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Floating Rate
    Weekly Demand</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<hr noshade>
<p align="center">
<p align="center"><font size="2">See
  Notes to Financial Statements.</font>
<p>
<p><p align='center'>21
<HR noshade size=4><PAGE>

<p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Municipal Income Trust II (BLE)</b></font>
<p>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM
INVESTMENTS&#151;150.8%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>California&#151;16.2%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 2,250</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Agua
Caliente Band, Cahuilla Indians, 6.00%, 7/01/18</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$   2,244,825</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California
Mobilehome Park Fin. Auth., Palomar Estates East &amp; West,  Ser. A, 5.25%,
3/15/34, ACA<br>
</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">03/13 @ 102</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">
<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD"><div align="right"><font size="2">3,560,165</font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">California
Statewide Cmnty. Dev. Auth., Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">04/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,205,000</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Golden
St. Tobacco Sec. Corp., Ser. B,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,880</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.00%,
6/01/38, AMBAC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,937,490</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">16,850</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.50%,
6/01/43</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">17,009,907</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,800</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.625%,
6/01/38</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">8,962,888</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">B-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">11,410</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Los
Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc.,  Ser. C, 7.50%,
    12/01/24<br>
</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">12/12 @ 102</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">
<td bgcolor="#DDDDDD">&nbsp;
  <div align="right"></div></td>

<td bgcolor="#DDDDDD"><div align="right"><font size="2">11,361,622</font></div></td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,620</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">San
Francisco City &amp; Cnty. Redev. Agcy., Cmnty. Facs. Dist.,  Mission Bay South,
6.625%, 8/01/27<br>
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">08/11 @ 101</font></div></td>
<td>&nbsp;</td>
<td align=right>
<td>&nbsp;</td><td><div align="right"><font size="2">4,811,314</font></div>
</td>
</tr>
<tr valign=top><td COLSPAN='24' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">55,093,211</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Colorado&#151;4.3%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">AA</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Colorado
Hlth. Facs. Auth., Catholic Hlth. Initiatives, Ser. A, 5.50%, 3/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">03/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,482,600</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Northwest
Pkwy. Pub. Hwy. Auth., Ser. A, 5.25%, 6/15/41, FSA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/11
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,257,840</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">14,740,440</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Connecticut&#151;1.2%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">A3</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Connecticut
Dev. Auth., Connecticut Lt. &amp; Pwr., PCR, Ser. B, 5.95%, 9/01/28</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/08
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,628,575</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,440</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Mohegan
Tribe Indians Gaming Auth., Pub. Impvt., 5.25%, 1/01/33</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">01/14
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,455,739</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,084,314</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>District
of Columbia&#151;5.7%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Dist.
of Columbia,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,265</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Friendship
Pub. Charter Sch. Inc., 5.25%, 6/01/33, ACA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/14
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,297,624</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Tobacco
Settlement Fin. Corp., 6.50%, 5/15/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No
Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,070,100</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Tobacco
Settlement Fin. Corp., 6.75%, 5/15/40</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">05/11
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">11,107,390</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">19,475,114</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Florida&#151;15.5%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">Baa3</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Capital
Trust Agcy., Air Cargo Fort Lauderdale Proj., 5.75%, 1/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/14
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,366,665</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Fishhawk
Cmnty. Dev. Dist. II, Spec. Assmnt. Rev,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser.
A, 6.25%, 5/01/34</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/13
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,095,730</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,830</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser.
B, 5.00%, 11/01/07</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">6,943,446</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,650</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Leesburg
Hosp., Leesburg Regl. Med. Ctr. Proj., 5.50%, 7/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,705,332</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,200</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Live
Oak Comm. Dev., Dist. No. 1 Spec. Assmnt. Rev., Ser. A, 6.30%, 5/01/34</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">3,323,200</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,850</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Orange
Cnty. Hlth. Facs. Auth., Hosp. Adventist Hlth. Sys., 5.625%, 11/15/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,245,656</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Pinellas
Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">14,454,160</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,085</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Stevens
Plantation Cmnty. Dev. Dist., Spl. Assmt. Rev., Ser. A, 7.10%, 5/01/35</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/14
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,132,559</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,625</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Sumter
Cnty. Ind. Dev. Auth., No. Sumter Util. Co. LLC, 6.90%, 10/01/34</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">10/09
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,707,140</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,715</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Sumter
Landing Cmnty. Dev., Spec. Assmnt. Rev, 6.875%, 5/01/23</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/13
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,900,862</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">52,874,750</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Georgia&#151;1.6%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,175</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Atlanta
Wtr. &amp; Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,379,206</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Illinois&#151;16.5%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Bolingbrook,
GO, Ser. A, 5.375%, 1/01/38, FGIC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">01/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,264,280</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,470</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Centerpoint
Intermodal Center, Ser. A, 8.00%, 6/15/23</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No
Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,485,166</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,500 <sup>3</sup></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Illinois
Dev. Fin. Auth., Hosp. Rev., Adventist Hlth. Sys. Sunbelt Oblig., 5.65%, 11/15/24</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">11/09
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">7,726,125</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A2</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Illinois
Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, 5.50%, 1/01/22</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,402,080</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Illinois
Sports Facs. Auth., Dedicated St. Tax Supported Rev., Zero Coupon, 6/15/30, AMBAC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/15
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">11,562,150</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Met.
Pier &amp; Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion
Proj., Ser. A, MBIA,<br>
</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td><td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td><td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero
Coupon, 12/15/29</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">6,690,250</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">45,190</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero
Coupon, 6/15/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No
Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,965,298</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero
Coupon, 6/15/40</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">751,100</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,290</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">O&#146;Hare
Intl. Arpt., Refdg. Gen. Arpt. 3rd Lien, Ser. C-2, 5.25%, 1/01/30, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/14
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,502,827</font></td>
</tr>
<tr valign=top>
  <td colspan="24" align=left bgcolor="#DDDDDD"><hr noshade size=1></td>
  </tr>
<tr valign=top>
  <td align=left bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td align=center bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td align=right bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td align=left bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td align=right bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td align=center bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td bgcolor="#DDDDDD">&nbsp;</td>
  <td align=right bgcolor="#DDDDDD"><font size="2">56,349,276</font></td>
  </tr>
<tr valign=top>
  <td colspan="24" align=left bgcolor="#DDDDDD"><hr noshade size=1></td>
  </tr>
</table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p><p align='center'>22
<HR noshade size=4><PAGE>

<p>
<hr noshade size=3>
<p><font size="3"><b> BlackRock Municipal Income Trust II (BLE) (continued)</b></font>
<p>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Principal</b></font></div></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="13" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Indiana&#151;9.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">Baa1</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 5,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Fort Wayne, PCR, Gen. Mtrs. Corp.
Proj., 6.20%, 10/15/25</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">12/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$   5,880,270</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Indiana Hlth. Fac. Fin. Auth., Ascension
Hlth., Ser. F, 5.375%, 11/15/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,160,950</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">19,735</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Indianapolis Local Pub. Impvt. Bond
Bank, Wtr. Wks. Proj., Ser. A, 5.25%, 7/01/33, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">20,967,253</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">32,008,473</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Louisiana&#151;0.7%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,485</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Louisiana Local Gov. Env., Oakleigh
Apts. Proj., Ser. A, 6.375%, 6/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,526,574</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Maryland&#151;2.5%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa3</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Econ. Dev. Corp., Student
Hsg. Rev., Univ. of Maryland, Ser. A, 5.75%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,058,450</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Maryland St. Hlth. &amp; Higher Edl.
Facs. Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,240</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Medstar Hlth., 5.50%, 8/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,237,850</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A3</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Union Hosp. of Cecil Cnty., 5.625%,
7/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,040,950</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,337,250</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Massachusetts&#151;3.9%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,110</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Massachusetts Tpke. Auth., Met. Hwy.
Sys. Rev., Ser. A, 5.00%, 1/01/39, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/09 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,432,375</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Mississippi&#151;1.7%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,950</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Lowndes Cnty. Sld. Wst. Disp., PCR,
Weyerhaeuser Co. Proj., Ser. A, 6.80%, 4/01/22</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,897,282</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Missouri&#151;1.8%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dept. of Transp., Rt. 370/ Missouri
Bottom Rd./Taussig Rd. Transp. Dev., 7.20%, 5/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,249,720</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Nevada&#151;2.6%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Henderson Local Impvt. Dist. No.
T-14, 5.80%, 3/01/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/04 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,033,990</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">No. Las Vegas Local Impvt., Spec.
Impvt. Dist. 60 Aliante,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  6.125%, 12/01/17</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/03 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,576,225</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  6.40%, 12/01/22</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">12/03 @ 103</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,091,320</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,701,535</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>New Jersey&#151;8.7%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Econ. Dev. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">B</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Continental Airlines Inc. Proj.,
7.20%, 11/15/30</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/10 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,669,639</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,475</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Kapkowski Road Landfill Proj.,
6.50%, 4/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,656,797</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">Baa3</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Kapkowski Road Landfill Proj.,
6.50%, 4/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">11,461,200</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">29,787,636</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>New Mexico&#151;1.4%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Baa1</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Mexico Hsg. Auth., Region III,
Villa Delaware Oso Apts. Proj., Ser. A, 6.00%, 1/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,845,412</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>New York&#151;2.6%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Caa2</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,800</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Port Auth. of NY &amp; NJ, Spec.
Oblig. Rev., Cont&#146;l/Eastern Proj. LaGuardia, 9.00%, 12/01/10</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/03 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,847,520</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Pennsylvania&#151;3.1%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB+</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Monroe Cnty. Hosp. Auth., Hospital
Pocono Med Center, 6.00%, 1/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,221,300</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A3</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,175</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Pennsylvania Econ. Dev. Fin. Auth.,
Amtrak Proj., Exempt Facs. Rev., Ser. A, 6.375%, 11/01/41</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/11 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,325,696</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,546,996</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Rhode Island&#151;3.8%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tobacco Settlement Fin. Corp., Ser.
A, 6.25%, 6/01/42</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,995,698</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>South Carolina&#151;7.4%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Greenwood Cnty. Hosp., Self Mem.
Hosp. Facs.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,280</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.50%, 10/01/26</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/11 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,403,394</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.50%, 10/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,361,865</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Lancaster Cnty. Assmnt., Edgewater
Impvt. Dist. Ser. A, 6.875%, 11/01/35</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/13 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,116,040</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">So. Carolina Jobs Econ. Dev. Auth.,
Hosp. Facs. Rev.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Bon Secours Hlth. Sys. Inc., Ser.
A, 5.625%, 11/15/30</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,039,660</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Georgetown Mem. Hosp., 5.375%,
2/01/30, RAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,952,425</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,640</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Palmetto Hlth. Alliance, Ser. A,
6.25%, 8/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,801,119</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Palmetto Hlth. Alliance, Ser. C,
6.875%, 8/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,553,100</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">25,227,603</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>South Dakota&#151;2.8%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">BBB</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Edl. Enhancement Fdg. Corp., Tobacco
Settlement, Ser. B, 6.50%, 6/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,551,400</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Tennessee&#151;2.5%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">AAA</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">20,405</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Knox Cnty. Hlth. Edl. &amp; Hsg.
Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon, 1/01/21, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/13 @ 63.44</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,359,724</font></td>
</tr>
<tr valign=top>
  <td colspan="13" align=left bgcolor="#DDDDDD"><HR noshade size=1></td>
  </tr>
</table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p><p align='center'>23
<HR noshade size=4><PAGE>

<p>
<hr noshade size=3>
<p><font size="3"><b> BlackRock Municipal Income Trust II (BLE) (continued)</b></font>
<p>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Texas&#151;17.8%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">BBB</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 2,300</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Brazos
River Auth., PCR, TXU Elec Co. Proj., Ser. C, 6.75%, 10/01/38</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/13
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$   2,505,275</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,750</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Crawford
Ed. Facs. Corp., Higher Ed. Rev., Univ. of St. Thomas Proj., 5.375%, 10/01/27</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,771,123</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">20,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Gulf
Coast Wst. Disp. Auth., Environ. Impvt. Rev., Ser. A, 6.10%, 8/01/24</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">21,176,600</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,485</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Matagorda
Cnty. Navigation Dist. 1, Collateral Centerpoint Energy Proj., 5.60%, 3/01/27</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">03/14
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,538,204</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Sabine
River Auth., PCR, Ser. B,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,900</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  TXU
Elec. Co. Proj., 5.75%, 11/01/11</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">6,374,183</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  TXU
Elec. Co. Proj., 6.15%, 8/01/22</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/13
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,116,420</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Texas
Tpke. Auth., Central Sys. Rev., AMBAC,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">73,370</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero
Coupon, 8/15/36</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/12 @ 24.171</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>

<td align=right bgcolor="#DDDDDD"><font size="2">11,303,382</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">65,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero
Coupon, 8/15/37</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td align=center><font size="2">08/12 @ 22.708</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>

<td align=right><font size="2">9,308,650</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">27,600</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero
Coupon, 8/15/38</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/12 @ 21.384</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>

<td align=right bgcolor="#DDDDDD"><font size="2">3,719,928</font></td>
</tr>
<tr valign=top><td COLSPAN='39' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">60,813,765</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Utah&#151;1.2%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Tooele
Cnty. Hazardous Wst. Treat., Union Pacific Proj., Ser. A, 5.70%, 11/01/26</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,094,480</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Virginia&#151;7.0%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR<sup>4</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Alexandria
Redev. &amp; Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%, 4/01/34</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08
@ 103</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">14,048,640</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Halifax
Cnty. Indl. Dev. Auth., Exempt Fac. Rev., Old Dominion Elec. Coop. Proj.,  5.625%,
    6/01/28, AMBAC <br>
</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">06/13 @ 101</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>

<td bgcolor="#DDDDDD"><div align="right"><font size="2">9,792,270</font></div></td></tr>
<tr valign=top><td COLSPAN='25' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">23,840,910</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>West
Virginia&#151;1.5%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB+</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Mason
Cnty., PCR, Refunding Appalachian Pwr. Co. Proj., Ser. L, 5.50%, 10/01/22</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,114,850</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Wisconsin&#151;6.5%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Badger
Tobacco Asset Sec. Corp., 6.375%, 6/01/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">8,550,542</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Wisconsin
Hlth. &amp; Edl. Facs. Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,930</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Aurora
Hlth. Care, 6.40%, 4/15/33</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">04/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,208,676</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Synergy
Hlth. Inc., 6.00%, 11/15/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,175,160</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Wheaton
Franciscan Svcs., 5.75%, 8/15/25</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">02/12
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,329,650</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">22,264,028</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>U.
S. Virgin Islands&#151;0.9%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">A</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,920</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Virgin
Islands Pub. Fin. Auth., Gross Rcpts. Taxes Loan Note, 5.00%, 10/01/31, ACA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/14
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,033,062</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total
Long-Term Investments (cost $491,267,075)</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">514,472,604</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>SHORT-TERM
INVESTMENTS&#151;7.9%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>California&#151;0.0%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">A1</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">75</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California
Hlth. Facs. Fin. Auth., Ins. Scripps Hlth., Ser. B, 0.92%, 3/03/04, MBIA, FRWD<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">N/A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">75,000</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Kansas&#151;0.3%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">A1+</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Kansas
Dept. Transp. Hwy, Ser. B-1, 0.94%, 3/01/04, FRDD<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">N/A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000,000</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Missouri&#151;0.5%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">A1+</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,800</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Missouri
Hlth. &amp; Edl. Facs. Auth., Edl. Facs. Rev., The Washington Univ.,  Ser. C,
0.98%, 3/01/04, FRDD<sup>5</sup><br>
</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">N/A</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>

<td bgcolor="#DDDDDD"><div align="right"><font size="2">1,800,000</font></div></td></tr>
<tr valign=top><td COLSPAN='25' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Texas&#151;3.8%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">A1+</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,800</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Brownsville
Util. Sys., Ser. A, 0.90%, 3/03/04, MBIA, FRWD<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">N/A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,800,000</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A1+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Lower
Neches Valley Auth., Ind. Dev. Corp., Ser. A, 0.88%, 3/01/04, FRDD<sup>5</sup></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000,000</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">12,800,000</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto
Rico&#151;0.9%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">A1</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Puerto
Rico Comnwlth. Govt. Dev. Bank, 0.89%, 3/03/04, MBIA, FRWD<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">N/A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000,000</font></td>
</tr>
<tr valign=top>
  <td colspan="24" align=left bgcolor="#DDDDDD"><HR noshade size=1></td>
  </tr>
</table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p><p align='center'>24
<HR noshade size=4><PAGE>

<p>
<hr noshade size=3>
<p><font size="3"><b> BlackRock Municipal Income Trust II (BLE) (continued)</b></font>
<p>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Shares</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUND&#151;2.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,200</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$   8,200,000</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Short-Term Investments (cost
$26,875,000)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">26,875,000</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Total Investments&#151;158.7%
(cost $518,142,075)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 541,347,604</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;1.6%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,397,214</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(60.3)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(205,571,978)</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 341,172,840</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=3></td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is deemed to be of investment
grade quality by the investment advisor.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">For purposes of amortized cost valuation,
the maturity date of this instrument is considered to be the earlier of the next
date on which the security can be redeemed at par, or the next date on which the
rate of interest is adjusted.</font></td><td>&nbsp;</td></tr></table>
<p>
<p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">ACA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
        Capital Access&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">&nbsp;FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial
        Security Assurance</font></td>
  </tr>
  <tr>
    <td><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American Municipal
        Bond Assurance Corporation</font></td>
    <td>&nbsp;</td>
    <td><font size="2">GO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; General Obligation</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
        Insurance Company&nbsp;&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
    Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">FRDD&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Floating Rate
        Daily Demand</font></td>
    <td>&nbsp;</td>
    <td><font size="2">PCR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Pollution Control
    Revenue</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">FRWD&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Floating Rate
        Weekly Demand</font></td>
    <td>&nbsp;</td>
    <td><p><font size="2">RAA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Radian Asset
          Assurance</font>
    </td>
  </tr>
</table>
<hr noshade>
<p align="center"><font size="2">See
Notes to Financial Statements.</font>
<p>
<p align='center'>25
<HR noshade size=4><PAGE>

<p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock California Insured Municipal Income Trust (BCK)</b></font>
<p>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="13" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;153.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">AAA</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 6,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Benicia Unified Sch. Dist., Ser.
B, Zero Coupon, 8/01/23, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$    2,501,720</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Cnty., Tobacco Sec. Agcy.
Rev.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,405</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Sonoma Cnty., 5.875%, 6/01/43</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,371,558</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,650</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Alameda Cnty., 6.00%, 6/01/42</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,743,858</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California Dept. of Wtr. Res., Pwr.
Sply. Rev., Ser. A, 5.25%, 5/01/20</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,939,790</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,385</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Edl. Facs. Auth., Scripps
Coll., 5.00%, 8/01/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,483,858</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,500 <sup>3</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California Infrastructure &amp; Econ.
Dev., Rand Corp., Ser. A, 5.25%, 4/01/42, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">04/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,773,870</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Pub. Wks. Brd., Dept.
of Gen. Svcs., Ser. A, 5.00%, 12/01/27, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,209,250</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Ceres Unified Sch. Dist., Ser. B,
FGIC,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,055</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero Coupon, 8/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 34.887</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">710,837</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,180</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero Coupon, 8/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/12 @ 32.868</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">696,611</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,300</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero Coupon, 8/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 30.966</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">679,008</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,440</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero Coupon, 8/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/12 @ 29.174</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">670,834</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,575</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero Coupon, 8/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 27.782</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">658,015</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,275</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero Coupon, 8/01/35</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/12 @ 26.186</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">568,966</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Long Beach Unified Sch. Dist., Ser.
D, 5.00%, 8/01/31, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,082,900</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Los Angeles Dept. of Wtr. &amp; Pwr.,
Wtr. Wks. Rev., Ser. A, FGIC,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.00%, 7/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,187,300</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.125%, 7/01/41</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/11 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,256,800</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Unified Sch. Dist., Ser.
E, 5.125%, 1/01/27, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,321,800</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Los Angeles Wstwtr. Sys., Ser. A,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.00%, 6/01/27, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,246,400</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,025</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.00%, 6/01/32, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,294,438</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">No. California Pwr. Agcy., Pub. Pwr.
Rev., Hydroelec. Proj. 1, Ser. A, 5.00%, 7/01/28, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/08 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,194,050</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">No. Orange Cnty. Cmnty. Coll. Dist.,
Ser. A, 5.00%, 2/01/27, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,625,125</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Riverside Unified Sch. Dist., Ser.
A, 5.00%, 2/01/27, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,257,950</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,295</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">San Diego Cnty. Wtr. Auth., COP,
Ser. A, 5.00%, 5/01/32, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,533,646</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,805</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Diego Redev. Agcy., Centre City
Proj., Ser. A, 5.00%, 9/01/28, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,034,871</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">San Diego Univ. Fndtn Aux. Org.,
Ser. A, 5.00%, 3/01/37, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">03/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,174,480</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Joaquin Hills Transp. Corridor
Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,088,600</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">San Jose Fin. Auth., Civic Ctr. Proj.,
Ser. B, 5.00%, 6/01/37, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,268,320</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11,125</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Santa Rosa Wstwtr., Ser. B, Zero
Coupon, 9/01/27, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,392,012</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Tustin Unified Sch. Dist., Spec.
Tax Rev., Cmnty. Facs. Dist. 97-1, Ser. A, 5.00%, 9/01/38, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">09/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,116,190</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,280</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Westlands Wtr. Dist., COP, 5.00%,
9/01/34, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,525,467</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Total Long-Term Investments (cost
$116,149,319)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">119,608,524</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b><font size="4">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Shares</b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(000)</b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="4"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUND&#151;4.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,600</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $3,600,000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">N/A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,600,000</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;157.8%
(cost $119,749,319)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$123,208,524</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Other assets in excess of liabilities&#151;1.7%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,352,782</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(59.5)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(46,508,035)</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 78,053,271</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>
<tr><td>&nbsp;</td></tr></table>

<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left></td>

<td>&nbsp;</td></tr>
<tr valign=top><td colspan="3" align=left><font size="2">&nbsp;</font><font size="2">Securities that are covered by insurance,
which ensures the timely payment of principal and interest, represent approximately
80.8% of the Trust&#146;s total investments.</font></td>
<td>&nbsp;</td></tr></table>
<p>&nbsp; </p>
<p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
    Municipal Bond Assurance Corporation</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial
        Security Assurance</font></td>
  </tr>
  <tr>
    <td><font size="2">COP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Certificate of
    Participation&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
    Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
        Insurance Company&nbsp;&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<hr noshade>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p><p align='center'>26
<HR noshade size=4><PAGE>

<p><font size="3"><b>PORTFOLIO
OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY 29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock California Municipal Bond Trust (BZA)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="13" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;149.6%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>California&#151;142.2%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Anaheim Pub. Fin. Auth., Pub. Impvt.
Proj., Ser. C, Zero Coupon, 9/01/32, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  1,151,550</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California Cnty. Tobacco Sec. Agcy.,
Ser. A,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Kern Cnty. Fdg., 6.125%, 6/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,576,560</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,250</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Stanislaus Fdg., 5.875%, 6/01/43</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,796,430</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Edl. Facs. Auth., Univ.
of San Diego, Ser. A, 5.25%, 10/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,203,480</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,270</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California Hlth. Facs. Fin. Auth.,
Insured Hlth. Facs. Valleycare, Ser. A, 5.375%, 5/01/27</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,369,146</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,755</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Hsg. Fin. Agcy., Home
Mtg., Ser. K, Zero Coupon, 2/01/33, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">02/12 @ 27.46</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,826,289</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California Infrastructure &amp; Econ.
Dev.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.25%, 6/01/30, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/07 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,176,850</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,750</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  J. David Gladstone Inst. Proj.,
5.25%, 10/01/34</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/11 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,894,750</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500 <sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Rand Corp., Ser. A, 5.25%, 4/01/42,
AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,713,010</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California Statewide Cmnty. Dev.
Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Kaiser Permanente, Ser. A, 5.50%,
11/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,221,950</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,250</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Sutter Hlth. Oblig. Grp., Ser.
B, 5.625%, 8/15/42</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,391,765</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Foothill/Eastn. Transp. Corridor
Agcy., Toll Road Rev., 5.75%, 1/15/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,875,100</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Golden St. Tobacco Sec. Corp.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. A-1, 6.75%, 6/01/39</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,924,970</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. B, 5.50%, 6/01/43</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,523,725</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,300</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. B, 5.625%, 6/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,324,063</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Lathrop Fin. Auth., Wtr. Suply. Proj.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">655</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.90%, 6/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">654,928</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR<sup>4</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,180</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  6.00%, 6/01/35</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,187,918</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Los Angeles Regl. Arpt. Impvt., Corp.
Lease Rev., Amer. Airlines Inc.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">B-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. B, 7.50%, 12/01/24</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">12/12 @ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">995,760</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">B-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">680</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. C, 7.50%, 12/01/24</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">677,117</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Mult. Fam. Hsg.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,240</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  San Lucas Apts., Ser. 5, 5.95%,
11/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,218,765</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR<sup>4</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,425</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Westgate Courtyard Apts., Ser.
3, 5.80%, 11/01/34</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">12/11 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,402,035</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,400</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty. Cmnty. Facs. Dist.,
Spl. Tax Rev., Ladera Ranch, Ser. A, 6.00%, 8/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,466,552</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Palm Springs Mobile Home Park, Sahara
Mobile Home Park, 5.75%, 5/15/37</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12 @ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,082,230</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">San Francisco City &amp; Cnty. Redev.
Agcy., Cmnty. Facs. Dist., Mission Bay South, 6.25%, 8/01/33</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><div align="center"><font size="2">08/11 @ 101</font></div></td>

<td>&nbsp;</td><td><div align="right"><font size="2">2,547,250</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">15,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Santa Ana Unified Sch. Dist., COP,
Zero Coupon, 4/01/29, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,201,050</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Santa Clara Valley Wtr. Dist., Wtr.
Util. Sys. Rev., Ser. A, 5.125%, 6/01/31, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/10 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,619,775</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A+</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Torrance Hosp. Rev., Torrance Mem.
Med Ctr., Ser. A, 5.50%, 6/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/11 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,556,565</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">72,579,583</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Delaware&#151;7.4%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR<sup>4</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500 <sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,761,170</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Total Long-Term Investments (cost
$73,257,824)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">76,340,753</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b><font size="4">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Shares</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>(000)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='15' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="4"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY MARKET FUNDS&#151;7.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">N/A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500,000</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,050</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">SSgA Tax Free Money Mkt. Fund</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,050,000</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Money Market Funds (cost $3,550,000)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,550,000</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;156.6%
(cost $76,807,824)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 79,890,753</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Other assets in excess of liabilities&#151;2.2%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,105,938</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(58.8)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(29,980,179)</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ &nbsp;&nbsp;51,016,512</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is deemed to be of investment
grade quality by the investment advisor.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>

<td>&nbsp;</td><td><font size="2">Security is not registered under the Securities
    Act of 1933. These securities may be resold in transactions in accordance
    with Rule 144A under that Act, to qualified institutional buyers. As of February
    29, 2004, the Trust held 7.4% of its net assets, with a current market value
    of $3,761,170, in securities restricted as to resale.</font></td>
</tr>
</table>
<p>&nbsp;</p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
        Municipal Bond Assurance Corporation</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial
        Security Assurance</font></td>
  </tr>
  <tr>
    <td><font size="2">COP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Certificate of
        Participation&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
        Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
        Insurance Company&nbsp;&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<hr noshade>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p><p align='center'>27
<HR noshade size=4><PAGE>

<p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock California Municipal Income Trust II (BCL)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM
INVESTMENTS&#151;157.7%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Anaheim
Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, FSA,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$15,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero
Coupon, 9/01/34</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$  3,116,400</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero
Coupon, 9/01/36</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No
Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,844,700</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">California,
GO, 5.50%, 11/01/33</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">11/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">8,346,560</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California
Cnty. Tobacco Sec. Agcy.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Gold
Country Fdg. Corp., 6.00%, 6/01/38</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">3,991,050</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,515</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser.
B, 6.00%, 6/01/29</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,135,347</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,600</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Stanislaus
Fdg., Ser. A, 5.875%, 6/01/43</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,376,704</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,000 <sup>3</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California
Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, 5.375%, 5/01/21</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,424,620</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">California
Infrastructure &amp; Econ. Dev., Ser. A,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Bay
Area Toll Brdgs., 5.00%, 7/01/36, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,248,300</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,735</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Kaiser
Hosp. Asst. LLC, 5.55%, 8/01/31</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,824,162</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Rand
Corp., 5.25%, 4/01/42, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">04/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,652,150</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">California
Mobilehome Park Fin. Auth., Palomar Estates East &amp; West,  Ser. A, 5.25%,
3/15/34, ACA<br>
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">03/13 @ 102</font></div></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>

<td><div align="right"><font size="2">3,560,165</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California
Statewide Cmnty. Dev. Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Kaiser
Permanente, Ser. A, 5.50%, 11/01/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,221,950</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Mem.
Hlth. Svcs., Ser. A, 5.50%, 10/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">04/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,287,000</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Sutter
Hlth. Oblig Corp., Ser. B, 5.50%, 8/15/34</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">8,308,640</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">California
Statewide Fin. Auth., Tobacco Settlement Rev.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser.
A, 6.00%, 5/01/37</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,469,000</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,750</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser.
B, 6.00%, 5/01/43</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,535,380</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Corona
Norco Unified Sch. Dist., Spec. Tax Rev., Cmnty. Facs. Dist. No. 98-1,  5.10%,
    9/01/32, AMBAC<br>
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">09/12 @ 100</font></div></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>

<td><div align="right"><font size="2">6,317,940</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Foothill/Eastn.
Transp. Corridor Agcy., Toll Road Rev., Ser. A,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,470 <sup>4</sup></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero
Coupon, 1/01/26</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">ETM</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,367,471</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,890 <sup>4</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero
Coupon, 1/01/30</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">ETM</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,345,435</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Golden
St. Tobacco Sec. Corp.,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser.
A-1, 6.75%, 6/01/39</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,899,960</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,650</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser.
B, 5.50%, 6/01/43</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,703,618</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser.
B, 5.625%, 6/01/38</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,055,530</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">La
Quinta Redev. Agcy. Tax Allocation, Redev. Proj. Area No. 1, 5.125%, 9/01/32, AMBAC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,326,150</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Lathrop
Fin. Auth., Wtr. Suply. Proj.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,490</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.90%,
6/01/27</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,489,836</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,680</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  6.00%,
6/01/35</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,697,983</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Los
Angeles Dept. of Wtr. &amp; Pwr., Wtr. Wks. Rev., Ser. A, 5.125%, 7/01/41, FGIC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,782,480</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">B-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,785</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Los
Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%,
12/01/24</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">12/12
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,777,432</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Oxnard
Impvt. Bond, Dist. No. 1 Spec. Assmt., 1 Rice Ave.,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,920</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.625%,
9/02/27</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">09/04
@ 103</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,904,659</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,915</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.70%,
9/02/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">09/04
@ 103</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,896,348</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Poway
Redev. Agcy. Tax Allocation, Paguay Redev. Proj., 5.125%, 6/15/33, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">12/11
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,300,050</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Poway
Unified Sch. Dist., Spl. Tax Rev., Cmnty. Facs. Dist. No. 6,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.50%,
9/01/25</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">09/10
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,464,900</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,700</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.60%,
9/01/33</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">09/10
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,699,507</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,470</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Rohnert
Park Fin. Auth., Rancho Feliz Mobile Home Park, Ser. A, 5.625%, 9/15/28</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">09/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,423,243</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Sacramento
City Fin. Auth., Cap. Impvt., Ser. A, 5.00%, 12/01/32, AMBAC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/11
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,199,850</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">San
Bernardino Cnty., Spl. Tax Rev., Cmnty. Facs., 5.90%, 9/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">09/12
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,917,440</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,665</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">San
Diego Unified Sch. Dist., Ser. D, 5.25%, 7/01/23, FGIC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">9,451,002</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">San
Francisco City &amp; Cnty. Redev. Agcy., Cmnty. Facs. Dist., Mission Bay South,
6.25%, 8/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD"><div align="center"><font size="2">08/11
  @ 101</font></div></td>
<td align=center bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td>

<td bgcolor="#DDDDDD"><div align="right"><font size="2">5,094,500</font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">30,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">San
Joaquin Hills Transp. Corridor Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/15/34,
MBIA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">6,531,900</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">San
Jose Mult. Fam. Hsg., Helzer Courts Apts. Proj., Ser. A, 6.40%, 12/01/41</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">12/09
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,734,400</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Santa
Clarita Facs. Dist., Valencia Town Ctr.,</font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,640</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.80%,
11/15/25</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/10
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,646,511</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.85%,
11/15/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">11/10
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,508,985</font></td></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p align='center'>28
<HR noshade size=4><PAGE>

<p>
<hr noshade size=3>
<p><font size="3"><b> BlackRock California Municipal Income Trust II (BCL) (continued)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="13" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 2,685</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Santa Rosa Wstwtr., Ser. B, Zero
Coupon, 9/01/25, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$    911,477</font></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,200</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">So. Tahoe Joint Pwr. Fin. Auth.,
So. Tahoe Redev. Proj. 1-A, 5.45%, 10/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,233,242</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tustin Unified Sch. Dist., Spec.
Tax Rev., Cmnty. Facs. Dist. 97-1, Ser. B, 5.60%, 9/01/29</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,009,500</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Univ. of California, Ser. A, 5.00%,
5/15/33, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,090,440</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,170</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Val Verde Unified Sch. Dist. Fin.
Auth., Spec. Tax Rev., 6.25%, 10/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,185,315</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A2</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Vernon Elec. Sys., Malburg Generating
Station Proj., 5.50%, 4/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">04/08 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,076,460</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$175,789,249)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">181,385,692</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b><font size="4">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>Shares</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(000)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>
</tr>
<tr valign=top><td COLSPAN='17' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><font size="4"><b>&nbsp;</b></font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Money&nbsp;Market Fund&#151;2.8%</b></font></td>

<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $3,250,000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,250,000</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Total Investments&#151;160.5%
(cost $179,039,249)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$184,635,692</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;2.0%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,346,708</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(62.5)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(71,956,487)</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$115,025,913</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=3></td>
</tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">This security is collateralized by
U.S. Treasury obligations.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is deemed to be of investment
grade quality by the investment advisor.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td><td>&nbsp;</td></tr></table>
<p>&nbsp;</p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">ACA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
    Capital Access</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial
        Security Assurance</font></td>
  </tr>
  <tr>
    <td><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American Municipal
    Bond Assurance Corporation&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">GO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; General Obligation</font></td>
  </tr>
  <tr>
    <td><font size="2">ETM&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Escrowed to Maturity</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
    Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
        Insurance Company&nbsp;&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<hr noshade>
<p>&nbsp;</p>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'>29
<HR noshade size=4><PAGE>

<p><font size="3"><b>PORTFOLIO
OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY 29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Florida Insured Municipal Income Trust (BAF)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="13" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;155.9%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Florida&#151;149.2%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Capital Trust Agcy. Multi-Fam., American
Opp.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">Baa3</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. C, 7.25%, 6/01/38</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13 @ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$    993,580</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. A, 5.875%, 6/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">974,720</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR<sup>3</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Colonial Cntry. Club Cmnty. Dev.
Dist., 6.40%, 5/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/13 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,175,080</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Brd. of Ed.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  GO, Ser. A, 5.00%, 6/01/27, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,506,790</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,640 <sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Lottery Rev., Ser. C, 5.00%, 1/01/22,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,187,776</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Florida Dept. of Transp., 5.00%,
7/01/27, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,353,080</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,695</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Gainesville Util. Sys., Ser. A, 5.00%,
10/01/33, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,122,707</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Highlands Cnty. Hlth. Facs. Auth.,
Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/11 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,096,360</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,580</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Hillsborough Cnty. Sch. Brd., COP,
Ser. A, 5.00%, 7/01/25, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/10 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,869,783</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Jacksonville,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Excise Tax, Ser. B, 5.00%, 10/01/26,
AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,387,920</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Sales Tax, 5.00%, 10/01/27, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,005,400</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Transp., 5.00%, 10/01/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,889,025</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,865</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Jacksonville Cap. Impvt., Ser. A,
5.00%, 10/01/30, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,997,650</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,480</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Julington Creek Plantation Cmnty.
Dev., Assmt. Rev., 5.00%, 5/01/29, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,553,541</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Lake Cnty. Sch. Brd., COP, Ser. A,
5.00%, 7/01/28, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,461,070</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">26,935</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Miami Dade Cnty., Spec. Oblig. Rev.,
Ser. B, Zero Coupon, 10/01/31, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08 @ 28.079</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,905,229</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,975</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Orange Cnty., Sales Tax, Ser. B,
5.125%, 1/01/32, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,401,662</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty. Sch. Brd., COP, Ser.
A, 5.00%, 8/01/27, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,088,180</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,250</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Orange Cnty. Tourist Dev., Tax Rev.,
5.125%, 10/01/30, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">04/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,722,027</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Osceola Cnty. Sch. Brd., COP, Ser.
A, 5.25%, 6/01/27, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,285,240</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Palm Bay Util., FGIC,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,015</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Zero Coupon, 10/01/28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,196,350</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,570</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Zero Coupon, 10/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,427,591</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,200</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Palm Beach Cnty. Sch. Brd., COP,
Ser. D, 5.00%, 8/01/28, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,612,252</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Pinellas Cnty. Hlth. Fac. Auth.,
Baycare Hlth. Sys., 5.50%, 11/15/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,162,200</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Pinellas Cnty. Swr., 5.00%, 10/01/32,
FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,967,305</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Polk Cnty. Util. Sys., 5.00%, 10/01/29,
FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,257,950</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">825</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Port St. Lucie Util., 5.125%, 9/01/31,
MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">865,565</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,945</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Sarasota Cnty. Util. Sys., Ser. C,
5.25%, 10/01/22, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,186,284</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">St. Petersburg Pub. Util., Ser. A,
5.00%, 10/01/28, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/09 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,632,545</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Tampa Bay Wtr. Util. Sys., Ser. A,
5.00%, 10/01/28, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/11 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,085,840</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Tohopekaliga Wtr. Auth., Ser. B,
FSA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,980</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.00%, 10/01/21</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,125,570</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.00%, 10/01/23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,063,710</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Village Cmnty. Dev., Assmt. Rev.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR<sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. A, 6.50%, 5/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,284,400</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR<sup>3</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">975</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. B, 5.40%, 5/01/07</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">994,481</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Village Cntr. Cmnty. Dev. Dist.,
Ser. A, 5.00%, 11/01/32, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,644,040</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">195,482,903</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto Rico&#151;6.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">BBB</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,405</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Children&#146;s Trust Fund, Tobacco
Settlement Rev., 5.625%, 5/15/43</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,768,940</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Long-Term Investments (cost
$196,677,572)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size=2>204,251,843</font></td></tr>
<tr valign=top>
  <td colspan="13" align=left><HR noshade size=1></td>
  </tr>
</table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p><p align='center'>30
<HR noshade size=4><PAGE>
<p>
<hr noshade size=3>
<p><font size="3"><b> BlackRock Florida Insured Municipal Income Trust (BAF) (continued)</b></font>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Shares</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="center"><font size="2"><b>Value</b></font></div></td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td colspan="14" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY&nbsp;MARKET FUND&#151;0.2%</b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">300</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $300,000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$     300,000</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;156.1%
(cost $196,977,572)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$204,551,843</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Other assets in excess of liabilities&#151;1.9%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,533,079</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(58.0)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(76,011,621)</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$131,073,301</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td COLSPAN='14' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>
</table>

<table width="100%" border="0" cellpadding="0" cellspacing="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security was deemed to be of investment
grade quality by the investment advisor at the time of purchase.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left></td>

<td>&nbsp;</td></tr>
<tr valign=top><td colspan="3" align=left><font size="2">&nbsp;</font><font size="2">&nbsp;Securities that are covered by insurance,
    which ensures the timely payment of principal and interest, represent approximately
    82.5% of the Trust&#146;s total investments.</font></td>
<td>&nbsp;</td>
<td align=left>&nbsp;</td>
<td>&nbsp;</td></tr></table>
<p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
    Municipal Bond Assurance Corporation&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial
        Security Assurance</font></td>
  </tr>
  <tr>
    <td><font size="2">COP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Certificate of
    Participation</font></td>
    <td>&nbsp;</td>
    <td><font size="2">GO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; General Obligation</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
    Insurance Company&nbsp;&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
        Insurance Association</font></td>
  </tr>
</table>

<p><hr noshade>
<p>
<p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p>
<p align='center'>31
<HR noshade size=4><PAGE>

<p><font size="3"><b>PORTFOLIO
OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY 29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Florida Municipal Bond Trust (BIE)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="13" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;154.7%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Florida&#151;141.4%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 1,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Bay Cnty., Sales Tax Rev., 5.125%,
9/01/32, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  1,319,350</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Boynton Beach Multi. Fam., Clipper
Cove Apts., 5.30%, 1/01/23, ACA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,028,750</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Capital Trust Agcy. Multi-Fam., American
Opp., Ser. A, 5.875%, 6/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">974,720</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,690</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Colonial Cntry. Club Cmnty. Dev.
Dist., 6.40%, 5/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/13 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,763,971</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Brd. Educ., GO, Ser. J, 5.00%,
6/01/24, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">797,910</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,150</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Florida Mun. Loan Council, Ser. A,
5.125%, 5/01/32, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,336,039</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,460</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Gateway Svcs. Cmnty. Dev. Dist.,
Spec. Assmt., Stoneybrook Proj., 5.50%, 7/01/08</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,482,907</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Greater Orlando Aviation Auth., Orlando
Arpt. Facs., Ser. A, 5.125%, 10/01/32, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,259,681</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,900</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Highlands Cnty. Hlth. Facs. Auth.,
Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,243,784</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB+</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,810</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Hillsborough Cnty. Ind. Dev. Auth.,
PCR, Tampa Elec. Co. Proj., 5.50%, 10/01/23</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,831,322</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Jacksonville Econ. Dev. Comm. Hlth.
Facs., Mayo Clinic, Ser. B, 5.50%, 11/15/36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,704,435</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA+</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">JEA Elec. Sys., Ser. A, 5.50%, 10/01/41</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/07 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,380,450</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,425 <sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">JEA Wtr. &amp; Swr. Sys., Ser. A,
5.375%, 10/01/30, MBIA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/07 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,678,836</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A1</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Lakeland Hosp. Sys., Lakeland Regl.
Hlth. Sys., 5.50%, 11/15/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,080,880</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Miami Dade Cnty., Spec. Oblig. Rev.,
MBIA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. A, Zero Coupon, 10/01/26</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">04/08 @ 37.301</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,611,775</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. B, Zero Coupon, 10/01/30</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08 @ 29.688</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,321,500</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,410</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. B, Zero Coupon, 10/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">04/08 @ 26.494</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,118,355</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Orange Cnty. Hlth. Facs. Auth., Orlando
Regl. Hlth. Care, 5.75%, 12/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,246,450</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,350</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Orange Cnty. Tourist Dev., Tax Rev.,
5.125%, 10/01/30, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">04/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,520,951</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,105</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Osceola Cnty. Tourist Dev., Tax Rev.,
Ser. A, 5.00%, 10/01/32, FGIC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,244,228</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,630</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Palm Bay Util., Zero Coupon, 10/01/28,
FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,081,631</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Palm Beach Cnty. Sch. Brd., COP,
Ser. C, 5.00%, 8/01/27, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,132,270</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Port St. Lucie Util., 5.125%, 9/01/31,
MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">09/11 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,573,755</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">So. Broward Hosp. Dist., 5.60%, 5/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,118,420</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Stevens Plantation Impvt. Proj.,
6.375%, 5/01/13</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,050,620</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,850</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Sumter Cnty. Indl. Dev. Auth., No.
Sumter Util. Co. LLC, 6.80%, 10/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/09 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,907,485</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,900</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Village Cmnty. Dev., Assmt. Rev.,
Ser. A, 6.50%, 5/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/13 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,008,072</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Volusia Cnty Edl. Fac. Auth., Embry
Riddle Aeronautical, RAA,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,250</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.20%, 10/15/26</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,299,225</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,610</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.20%, 10/15/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,684,849</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">73,802,621</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Delaware&#151;6.2%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">NR<sup>4</sup></font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000 <sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/14 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,223,860</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto Rico&#151;7.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">A-</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t.
Facs., Ser. D, 5.25%, 7/01/36</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,693,480</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;154.7%
(cost $75,832,770)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 80,719,961</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Other assets in excess of liabilities&#151;2.4%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,250,887</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(57.1)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(29,778,001)</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 52,192,847</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>
<tr><td>&nbsp;</td></tr></table>
<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is deemed to be of investment
grade quality by the investment advisor.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 6.2% of its net assets, with a current market value of
$3,223,860, in securities restricted as to resale.</font></td>

<td>&nbsp;</td></tr>
</table>
<p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">ACA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
    Capital Access</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial
        Security Assurance</font></td>
  </tr>
  <tr>
    <td><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American Municipal
    Bond Assurance Corporation&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
    Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;COP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Certificate
    of Participation</font></td>
    <td>&nbsp;</td>
    <td><font size="2">PCR&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Pollution Control
    Revenue</font><font size="2">&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
    Insurance Company&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">RAA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Radian Asset Assurance</font></td>
  </tr>
</table>
<p>
<hr noshade>
<p>
<p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p>
<p align='center'>32
<HR noshade size=4><PAGE>

<p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Maryland Municipal Bond Trust (BZM)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM
INVESTMENTS&#151;151.8%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Maryland&#151;120.2%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A3</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$2,870</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Anne
Arundel Cnty. Econ. Dev., Cmnty. Coll. Proj., 5.25%, 9/01/28</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$  3,020,331</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Baltimore,
Spec. Oblig. Rev., Harborview Lot No. 2, 6.50%, 7/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/13
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,037,340</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Baltimore
Cnty., GO,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000 <sup>3</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Met.
67th Dist., 5.00%, 6/01/22</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/11
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,139,700</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Met.
68th Dist., 5.00%, 8/01/28</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,099,680</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Baltimore
Wstwtr. Proj., Ser. A, FGIC,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.125%,
7/01/42</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,103,260</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.20%,
7/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,729,110</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">NR</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Frederick
Cnty. Spec. Oblig., Urbana Cmnty. Dev. Auth., 6.625%, 7/01/25</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/07
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,050,730</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">Aa2</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">390</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Maryland
Cmnty Dev. Admin., Dept. Hsg. &amp; Cmnty. Dev., Ser. B, 4.95%, 7/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">391,240</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Baa3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland
Econ. Dev. Corp., Student Hsg. Rev., Univ. of Maryland, Ser. A, 5.75%, 10/01/33</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,517,535</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Maryland
Hlth. &amp; Higher Edl. Facs. Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Brd.
of Child Care, 5.375%, 7/01/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,105,020</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB+</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,990</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Carroll
Cnty. Gen. Hosp., 6.00%, 7/01/37</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,110,694</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Johns
Hopkins Univ., Ser. B, 5.00%, 7/01/41</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,070,580</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Loyola
Coll. Issue, 5.00%, 10/01/39</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/09
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,060,720</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Union
Hosp. of Cecil Cnty., 5.625%, 7/01/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,081,900</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Univ.
of Maryland Med. Sys., 5.25%, 7/01/34</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/11
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,053,640</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,905</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland
Ind. Dev. Fin. Auth., Econ. Dev. Rev., Nat&#146;l. Aquarium Baltimore Fac.,
Ser. B, 5.20%, 11/01/26<br>
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">11/12 @ 100</font></div></td>
<td>&nbsp;</td><td>&nbsp;</td>
<td align=right>&nbsp;</td>

<td><div align="right"><font size="2">1,988,934</font></div></td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Maryland
Transp. Auth., Arpt. Pkg. Rev., Baltimore/Wash Intl. Arpt.,  Ser. B, 5.125%,
    3/01/24, AMBAC<br>
</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2">03/12 @ 101</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>

<td bgcolor="#DDDDDD"><div align="right"><font size="2">2,100,160</font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Montgomery
Cnty. Lease, Metrorail Garage Proj.,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.00%,
6/01/23</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">529,480</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,435</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.00%,
6/01/24</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,514,470</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">St.
Mary&#146;s Coll., Academic &amp; Auxil. Fees, Ser. A, AMBAC,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.00%,
9/01/27</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">09/12
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,055,240</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.00%,
9/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">09/12
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,051,250</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">37,811,014</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Delaware&#151;6.9%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR<sup>4</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000 <sup>5</sup></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Charter
Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,149,240</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Puerto
Rico&#151;24.7%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Children&#146;s
Trust Fund, Tobacco Settlement Rev., 5.50%, 5/15/39</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,845,960</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,060</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Puerto
Rico Elec. Pwr. Auth., Ser. HH, 5.25%, 7/01/29, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/10
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,205,292</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto
Rico Hwy. &amp; Transp. Auth., Ser. D, 5.25%, 7/01/38</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,103,440</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Puerto
Rico Pub. Bldgs. Auth., Gov&#146;t. Facs., Ser. D, 5.375%, 7/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,606,650</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">7,761,342</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Total
Long-Term Investments (cost $44,966,131)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">47,721,596</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b><font size="4">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Shares</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(000)</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='39' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="4"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY&nbsp;MARKET
FUND</b><b>&#151;2.5%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">800</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">AIM
Tax Free Investment Co. Cash Reserve Portfolio (cost $800,000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">N/A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">800,000</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total
Investments&#151;154.3% (cost $45,766,131)</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$
48,521,596</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Other
assets in excess of liabilities&#151;2.9%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">927,691</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred
shares at redemption value, including dividends payable&#151;(57.2)%</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(18,000,963)</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Net
Assets Applicable to Common Shareholders&#151;100%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 31,448,324</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>
<tr><td>&nbsp;</td></tr></table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is deemed to be of investment
grade quality by the investment advisor.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 6.9% of its net assets, with a current market value of
$2,149,240, in securities restricted as to resale.</font></td>

<td>&nbsp;</td></tr>
</table>
<p>
<p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American Municipal
        Bond Assurance Corporation&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Security
    Assurance</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
        Insurance Company&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">GO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; General Obligation</font></td>
  </tr>
</table>
<p>
<hr noshade>
<p align="center">
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p><p><p>
<p align='center'>33
<HR noshade size=4><PAGE>

<p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock New Jersey Municipal Bond Trust (BLJ)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="13" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;158.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>New Jersey&#151;123.1%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AAA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$10,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Garden St. Pres. Trust, Open Space
&amp; Farmland Pres., Ser. B, Zero Coupon, 11/01/27, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">No Opt. Call</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  3,153,700</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">Baa1</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Middlesex Cnty. Impvt. Auth., Str.
Student Hsg. Proj., Ser. A, 5.00%, 8/15/35</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/14 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,453,275</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Econ. Dev. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">B</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,335</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Continental Airlines Inc. Proj.,
7.00%, 11/15/30</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/10 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,182,221</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Fellowship Village, Ser. A, 5.50%,
1/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">01/08 @ 102</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,994,840</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">Baa3</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,250</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Kapkowski Road Landfill Proj.,
6.50%, 4/01/28</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,605,725</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aaa</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,770</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Victoria Hlth., Ser. A, 5.20%,
12/20/36,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/11 @ 103</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,867,385</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Winchester, Ser. A, 5.80%, 11/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/14 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,499,655</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Edl. Facs. Auth.,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Fairleigh Dickinson Univ., Ser.
D, 6.00%, 7/01/25</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,048,910</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">630</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Georgian Court Coll. Proj., Ser.
C, 6.50%, 7/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">702,904</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New Jersey Hlth. Care Fac. Fin. Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Atlantic City Med. Ctr., 5.75%,
7/01/25</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,122,600</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A+</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Catholic Hlth. East, Ser. A, 5.375%,
11/15/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,061,480</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000 <sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Kennedy Hlth. Sys., 5.625%, 7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,079,460</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">Baa1</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  So. Jersey Hosp., 6.00%, 7/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,584,600</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Hsg. &amp; Mtg. Fin. Agcy.,
Mult. Fam. Hsg. Rev., Ser. A, 5.65%, 5/01/40, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">11/07 @ 101.5</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,351,385</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Port Auth. of NY &amp; NJ,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser. 125, 5.00%, 4/15/32, FSA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,582,095</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,250</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. 126, 5.25%, 5/15/37, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,372,558</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Caa2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">130</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Spec. Oblig., Cont&#146;l/Eastern
Proj. LaGuardia, 9.125%, 12/01/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">03/04 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">130,183</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Tobacco Settlement Fin. Corp., 6.125%,
6/01/42</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,331,920</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Univ. of Med. &amp; Dentistry, Ser.
A, 5.00%, 12/01/31, AMBAC</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">12/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,050,750</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Vineland, GO, MBIA,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.30%, 5/15/29</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/10 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,058,140</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.375%, 5/15/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/10 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,590,285</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">42,824,071</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Delaware&#151;6.2%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR<sup>4</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000 <sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,149,240</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Puerto Rico&#151;28.7%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">A-</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,250</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Elec. Pwr. Auth., Ser.
2, 5.25%, 7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,388,532</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,900</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Puerto Rico Hwy. &amp; Transp. Auth.,
Ser. D, 5.25%, 7/01/38</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,153,428</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,300</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t.
Facs., Ser. D, 5.25%, 7/01/27</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,435,355</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">9,977,315</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;158.0%
(cost $52,721,818)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 54,950,626</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Other assets in excess of liabilities&#151;0.2%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">57,080</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(58.2)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(20,228,093)</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 34,779,613</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is deemed to be of investment
grade quality by the investment advisor.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 6.2% of its net assets, with a current market value of
$2,149,240, in securities restricted as to resale.</font></td>

<td>&nbsp;</td></tr>
</table>
<p><p>
<p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
        Municipal Bond Assurance Corporation&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">GO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; General
    Obligation</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
    Insurance Company&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
    Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Security
    Assurance</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
<hr noshade>
<p>
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p>
<p><p align='center'>34
<HR noshade size=4><PAGE>

<p><font size="3"><b>PORTFOLIO
OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY 29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock New York Insured Municipal Income Trust (BSE)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM
INVESTMENTS&#151;155.5%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>New
York&#151;141.8%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB-</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 1,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Herkimer
Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc. Student Hsg.,
    6.25%, 8/01/34<br></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">08/13 @ 100</font></div></td>
<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td>
<td align=right><font size="2">$  1,031,420</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Met.
Transp. Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>

<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,085</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser.
A, 5.00%, 11/15/25, FGIC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,142,245</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,470</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser.
A, 5.00%, 11/15/30, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,879,186</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser.
A, 5.25%, 11/15/31, FGIC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,365,200</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Dedicated
Tax Fund, Ser. A, 5.00%, 11/15/28, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,248,950</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Dedicated
Tax Fund, Ser. A, 5.00%, 11/15/31, FGIC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">11/11
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,214,150</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,660</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Refdg.
Transp., Ser. E, 5.25%, 11/15/31, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,854,286</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Svc.
Contract Rev., Ser. A, 5.00%, 7/01/30, AMBAC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">10,465,400</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New
York City Indl. Dev. Agcy., Lycee Francais de Proj., Ser. A, 5.375%, 6/01/23, ACA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">12/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,633,050</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">New
York City Mun. Wtr. Fin. Auth., Wtr. &amp; Swr. Syst, Ser. A, 5.125%, 6/15/34, FSA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">4,740,885</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New
York City Transl. Fin. Auth., Ser. B, 5.00%, 5/01/30, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/11
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,336,910</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,320</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">New
York Cntys. Tobacco Trust III, 6.00%, 6/01/43</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">3,222,890</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New
York Dorm. Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Brooklyn
Law School, Ser. B, 5.125%, 7/01/30, XLCA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,284,050</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Hosp.
Lutheran Med., 5.00%, 8/01/31, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">02/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,339,990</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,160</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Iona
Coll., 5.00%, 7/01/27, XLCA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">3,313,829</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">Aa3</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Joachim
&amp; Ann Residence, 5.25%, 7/01/27</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,067,500</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Memorial
Sloan Kettering Ctr., Ser. 1, Zero Coupon, 7/01/30, MBIA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,776,000</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  New
York &amp; Presbyterian Hosp., 5.00%, 8/01/32, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">02/08
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,159,600</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  New
York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">7,264,810</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Sch.
Dist. Fin., Ser. A, 5.00%, 4/01/31, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,094,060</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Sch.
Dist. Fin., Ser. D, 5.00%, 10/01/30, MBIA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">3,667,160</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,000 <sup>3</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  St.
Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,323,680</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000 <sup>4</sup></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Univ.
Dorm. Facs., 5.00%, 7/01/12, MBIA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,775,700</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Winthrop
Univ. Hosp. Assoc., Ser. A, 5.25%, 7/01/31, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/11
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,133,520</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">New
York Urban Dev. Corp.,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser.
B, 5.00%, 3/15/33, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">03/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,241,950</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser.
C-1, 5.00%, 3/15/33, FGIC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">03/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,620,975</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Triborough
Brdg. &amp; Tunl. Auth., Ser. E, 5.00%, 11/15/32, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,505,300</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">TSASC
Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,925,840</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">137,628,536</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto
Rico&#151;13.7%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">BBB</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,600</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Children&#146;s
Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7,086,012</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto
Rico Indl. Fin. Auth., Med. &amp; Env. Ctrl. Facs., Polytecnic Univ.,  Ser. A,
5.00%, 8/01/32, ACA<br>
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">08/12 @ 100</font></div></td>
<td>&nbsp;</td><td>&nbsp;</td>
<td align=right>&nbsp;</td>

<td><div align="right"><font size="2">5,145,800</font></div></td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Puerto
Rico Mun. Fin. Agcy., Ser. A, 5.00%, 8/01/27, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">08/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,057,090</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">13,288,902</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Total
Long-Term Investments (cost $144,725,754)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">150,917,438</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b><font size="4">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Shares</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(000)</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center></td>

<td>&nbsp;</td></tr>
<tr valign=top><td COLSPAN='38' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="4"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2"><b>&nbsp;</b></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY&nbsp;MARKET
FUND&#151;0.7%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">650</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">AIM
Tax Free Investment Co. Cash Reserve Portfolio (cost $650,000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">N/A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">650,000</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total
Investments&#151;156.2% (cost $145,375,754)</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$151,567,438</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Other
assets in excess of liabilities&#151;1.5%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,476,987</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred
shares at redemption value, including dividends payable&#151;(57.7)%</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">(56,002,765)</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Net
Assets Applicable to Common Shareholders&#151;100%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 97,041,660</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>
</table>

<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">This bond is prerefunded. Securities,
held in escrow, are used to pay interest on this security, as well as retire the
bond in full at the maturity date indicated, typically at a premium to par.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left></td>

<td>&nbsp;</td></tr>
<tr valign=top><td colspan="3" align=left><font size="2">&nbsp;</font><font size="2">&nbsp;Securities that are covered by insurance,
    which ensures the timely payment of principal and interest, represent approximately
    86.2% of the Trust&#146;s total investments.</font></td>
<td>&nbsp;</td>
<td align=left>&nbsp;</td>
<td>&nbsp;</td></tr></table>
<p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">ACA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
    Capital Access</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial
    Security Assurance</font></td>
  </tr>
  <tr>
    <td width="46%"><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
        Municipal Bond Assurance Corporation&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
        Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
        Insurance Company&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">&nbsp;XLCA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; XL Capital
    Assurance</font></td>
  </tr>
</table>
<p>
<hr noshade>
<p>
<p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'>35
<HR noshade size=4><PAGE>

<p><font size="3"><b>PORTFOLIO
OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY 29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock New York Municipal Bond Trust (BQH)</b></font>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="13" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM INVESTMENTS&#151;155.5%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>New York&#151;114.5%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">AA</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$2,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Dutchess Cnty. Ind. Dev. Agcy., Civic
Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/11 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  2,139,960</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Met. Transp. Auth., Dedicated Tax
Fund, Ser. A, 5.125%, 11/15/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,127,620</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City, GO, Ser. D, 5.375%,
6/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,145,650</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A3</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New York City Hlth. &amp; Hosp. Corp.,
Hlth. Sys., Ser. A, 5.375%, 2/15/26</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">02/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,136,410</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York City Hsg. Dev. Corp., Mult.
Fam. Hsg. Rev., Ser. A, 5.50%, 11/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,589,525</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New York City Mun. Wtr. Fin. Auth.,
Ser. A, 5.25%, 6/15/33, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/11 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,655,125</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,445</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Cntys. Tobacco Trust III,
6.00%, 6/01/43</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">06/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,402,734</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New York Dorm. Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,465 <sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  City Univ., Ser. A, 5.25%, 7/01/11</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,891,001</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">285</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  City Univ., Ser. A, 5.25%, 7/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/11 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">299,478</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Iona Coll., 5.125%, 7/01/32, XLCA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,634,450</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Lenox Hill Hosp. Oblig. Grp., 5.50%,
7/01/30</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/11 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,156,120</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Willow Towers Inc. Proj., 5.40%,
2/01/34</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">08/12 @ 101</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,633,675</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,750 <sup>4</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New York Env. Facs. Corp., Mun. Wtr.
Proj., Ser. D, 5.125%, 6/15/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,908,978</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Aa1</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,980</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Mtg. Agcy., Ser. 101, 5.40%,
4/01/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,059,953</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New York Urban Dev. Corp., Ser. A,
5.25%, 3/15/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">03/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,271,750</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Port Auth. of NY &amp; NJ,</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,750</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser. 126, 5.25%, 5/15/37, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,899,792</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">Caa2</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,600</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">  Spec. Oblig., Cont&#146;l/Eastern
Proj. LaGuardia, 9.125%, 12/01/15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">04/04 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,603,666</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Suffolk Cnty. Indl. Dev. Agcy., Keyspan
Port Jefferson Proj., 5.25%, 6/01/27</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/13 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">510,100</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">TSASC Inc., Tobacco Settlement Rev.,
Ser. 1, 5.75%, 7/15/32</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,962,920</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">48,028,907</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Delaware&#151;6.4%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">NR<sup>5</sup></font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500 <sup>6</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Charter Mac Equity Issuer Trust,
Ser. B-2, 7.20%, 10/31/52</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/14 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,686,550</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto Rico&#151;33.1%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">BBB</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,650</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Children&#146;s Trust Fund, Tobacco
Settlement Rev., 5.625%, 5/15/43</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,403,150</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,750</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico, GO, Ser. A, 5.125%,
7/01/31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/11 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,857,883</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Puerto Rico Elec. Pwr. Auth., Ser.
2, 5.25%, 7/01/31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,123,140</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto Rico Hwy. &amp; Transp. Auth.,
Ser. D, 5.25%, 7/01/38</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">07/12 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,629,300</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,700</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Puerto Rico Pub. Bldgs. Auth., Gov&#146;t.
Facs., Ser. D, 5.25%, 7/01/27</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/12 @ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,858,895</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,872,368</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Trust Territories&#151;1.5%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Ba3</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">635</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Northern Mariana Islands Commerce,
Ser. A, 6.75%, 10/01/33</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">10/13 @ 100</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">654,482</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Total Investments&#151;155.5%
(cost $61,661,544)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 65,242,307</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Other assets in excess of liabilities&#151;2.2%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">914,901</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(57.7)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(24,201,494)</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 41,955,714</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=3></td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">This bond is prerefunded. Securities,
held in escrow, are used to pay interest on this security, as well as retire the
bond in full at the maturity date indicated, typically at a premium to par.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is deemed to be of investment
grade quality by the investment advisor.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>6</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 6.4% of its net assets, with a current market value of
$2,686,550, in securities restricted as to resale.</font></td>

<td>&nbsp;</td></tr>
</table>
<p>&nbsp;</p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td width="46%"><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial
    Guaranty Insurance Company&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">XLCA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; XL
    Capital Assurance</font></td>
  </tr>
  <tr>
    <td width="46%"><font size="2">GO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; General
    Obligation</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
<hr noshade>
<p><p align="center">
<p align="center"><font size="2">See Notes to Financial Statements.</font><font size="2"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
<p><p align='center'>36
<HR noshade size=4><PAGE>

<p>
<font size="3"><b>PORTFOLIO OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY
29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock New York Municipal Income Trust II (BFY)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="100" align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="100" align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="100" align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM
INVESTMENTS&#151;155.9%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>New
York&#151;143.0%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Aaa</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$1,750</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Clarence
Indl. Dev. Agcy., Civic Fac. Rev., Bristol Village Proj., 6.00%, 1/20/44</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">01/13
@ 102</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$
1,927,940</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Dutchess
Cnty. Ind. Dev. Agcy., Civic Facs. Rev., Vassar Coll. Proj., 5.35%, 9/01/40</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">08/11
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">6,419,880</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">625</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Essex
Cnty. Indl. Dev. Agcy., Solid Wst. Disp. Rev., Intl. Paper Co. Proj., Ser. A, 5.50%,
10/01/26</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">10/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">636,688</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,250</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Geneva
Indl. Dev. Agcy., Civic Fac. Rev., Hobart &amp; William Smith Proj., Ser. A, 5.375%,
2/01/33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">02/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,433,105</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">385</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Herkimer
Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Coll. Foundation Inc. Student Hsg.,
    6.25%, 8/01/34<br>
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td width="100" align=right><div align="center"><font size="2">08/13 @ 100</font></div></td>
<td>&nbsp;</td><td>&nbsp;</td>
<td align=right>&nbsp;</td>

<td><div align="right"><font size="2">397,097</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,515</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Long
Island Pwr. Auth., Elec. Sys. Rev., Ser. A, Zero Coupon, 6/01/28, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">No
Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,100,722</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Met.
Transp. Auth., Ser. A,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.25%,
11/15/31, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">11/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,146,080</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ded.
Tax Fund, 5.00%, 11/15/30</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">11/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,179,050</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA-</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Svc.
Contract Rev., 5.125%, 1/01/29</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">07/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,212,000</font></td>
</tr>
<tr valign=top><td height="21" align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">New
York City, GO, Ser. B, 5.75%, 12/01/22</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">12/11
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,456,300</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New
York City Indl. Dev. Agcy., Ser. A,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA+</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Eger
Harbor Proj., 4.95%, 11/20/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">11/12
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,019,980</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA+</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Eger
Harbor Proj., 5.875%, 5/20/44</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">11/12
@ 105</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,121,750</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Lycee
Francais de Proj., 5.375%, 6/01/23, ACA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">12/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,579,830</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New
York City Mun. Wtr. Fin. Auth., Ser. A, 5.125%, 6/15/34</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">06/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,256,950</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">New
York City Trans. Auth., Met. Transp. Auth., Triborough Brdg. &amp; Tunl. Auth.,
COP, Ser. A, 5.25%, 1/01/29, AMBAC<br>
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td width="100" align=right><div align="center"><font size="2">01/10 @ 101</font></div></td>
<td>&nbsp;</td><td>&nbsp;</td>
<td align=right>&nbsp;</td>

<td><div align="right"><font size="2">5,301,600</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA+</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New
York City Trans. Fin. Auth., Ser. B, 5.00%, 11/01/27</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">11/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,222,250</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">BBB</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,535</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">New
York Cntys. Tobacco Trust III, 6.00%, 6/01/43</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">06/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,460,851</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New
York Dorm. Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Brooklyn
Law School, Ser. B, 5.125%, 7/01/30, XLCA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">07/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,642,025</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">Aa3</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Kateri
Residence, 5.00%, 7/01/22</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">07/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,053,460</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Memorial
Sloan Kettering Ctr., Ser. 1, 5.00%, 7/01/34</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">07/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,160,500</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Mount
St. Mary Coll., 5.00%, 7/01/32, RAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">07/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,075,960</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,425</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  New
York Univ., 5.00%, 7/01/31, MBIA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">07/11
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,524,449</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500 <sup>3</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  St.
Barnabas, Ser. A, 5.00%, 2/01/31, AMBAC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">08/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,615,600</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000 <sup>4</sup></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Univ.
Dorm. Facs., 5.00%, 7/1/12</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">N/A</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,775,700</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A+</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New
York Energy Res. &amp; Dev. Auth., Facs. Rev., 4.70%, 6/01/36</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">10/05
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,556,650</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">New
York Urban Dev. Corp., Ser. C-1, 5.00%, 3/15/33</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">03/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">5,177,550</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">Caa2</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,675</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Port
Auth. of NY &amp; NJ, Spec. Oblig., Cont&#146;l/Eastern Proj. LaGuardia, 9.125%,
12/01/15</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">03/04
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,680,182</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Suffolk
Cnty. Indl. Dev. Agcy., Keyspan Port Jefferson Proj., 5.25%, 6/01/27</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">06/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,550,500</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Triborough
Brdg. &amp; Tunl. Auth., Ser. A, 5.00%, 1/01/32</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">01/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,593,475</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A3</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">TSASC
Inc., Tobacco Settlement Rev., Ser. 1, 5.75%, 7/15/32</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">07/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">8,888,760</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">105,166,884</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Puerto
Rico&#151;11.4%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">BBB</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,400</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Children&#146;s
Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">05/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,305,318</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,750</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Puerto
Rico, GO, Ser. A, 5.125%, 7/01/31</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">07/11
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">3,897,113</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Puerto
Rico Comnwlth. Hwy. &amp; Transp. Auth.,</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Ser.
D, 5.375%, 7/01/36</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">07/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">2,142,200</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">A</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Ser.
G, 5.00%, 7/01/42</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">07/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,030,280</font></td>
</tr>
<tr valign=top><td COLSPAN='41' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">8,374,911</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Trust
Territories&#151;1.5%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">Ba3</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,105</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Northern
Mariana Islands Commerce, Ser. A, 6.75%, 10/01/33</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td width="100" align=center><font size="2">10/13
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,138,901</font></td>
</tr>
<tr valign=top><td COLSPAN='41' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Total
Long-Term Investments (cost $109,863,016)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td width="100" align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">114,680,696</font></td>
</tr>
<tr valign=top>
  <td colspan="24" align=left bgcolor="#DDDDDD"><HR noshade size=1></td>
  </tr>
</table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p>
<p align='center'>37
<HR noshade size=4><PAGE>

<p>
<hr noshade size=3>
<p><font size="3"><b> BlackRock New York Municipal Income Trust II (BFY) (continued)</b></font>

<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Shares</b></font></td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="13" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>MONEY&nbsp;MARKET FUND&#151;3.0%</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><font size="2">&nbsp;</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,200</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">AIM Tax Free Investment Co. Cash
Reserve Portfolio (cost $2,200,000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$   2,200,000</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Total Investments&#151;158.9%
(cost $112,063,016)</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$116,880,696</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Other assets in excess of liabilities&#151;1.8%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,336,610</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Preferred shares at redemption value,
including dividends payable&#151;(60.7)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(44,653,919)</font></td>
</tr>
<tr valign=top><td COLSPAN='13' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Net Assets Applicable to Common
Shareholders&#151;100%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 73,563,387</font></td>
</tr>
<tr valign=top><td COLSPAN='13' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>
</table>
<table width="100%" border="0" cellpadding="0" cellspacing="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">This bond is prerefunded. Securities,
held in escrow, are used to pay interest on this security, as well as retire the
bond in full at the maturity date indicated, typically at a premium to par.</font></td>

<td>&nbsp;</td></tr>
</table>
<p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td><font size="2">ACA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American Capital
    Access&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">GO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; General Obligation</font></td>
  </tr>
  <tr>
    <td width="46%"><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
        Municipal Bond Assurance Corporation&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal
    Bond Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">COP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Certificate of
    Participation</font></td>
    <td>&nbsp;</td>
    <td><font size="2">RAA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Radian Asset Assurance</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
        Insurance Company&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">XLCA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; XL Capital Assurance</font></td>
  </tr>
  <tr>
    <td><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Security
        Assurance</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
<hr noshade>
<p align="center">
<p align="center"><font size="2">See Notes to Financial Statements.</font>
<p><p><p>
<p align='center'>38
<HR noshade size=4><PAGE>

<p><font size="3"><b>PORTFOLIO
OF INVESTMENTS </b><b>(unaudited)</b><b><br>FEBRUARY 29, 2004</b></font><hr noshade size=3>
<p><font size="3"><b> BlackRock Virginia Municipal Bond Trust (BHV)</b></font>


<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Principal</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Amount</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Option Call</b></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Rating</b><sup><b>1</b></sup></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>(000)</b></font></td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left><div align="center"><font size="2"><b>Description</b></font></div></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Provisions</b><sup><b>2</b></sup></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="center"><font size="2"><b>Value</b></font></div></td>
  </tr>
  <tr valign=top>
    <td colspan="24" ><hr noshade></td>
  </tr>
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>LONG-TERM
INVESTMENTS&#151;153.4%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>

</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Virginia&#151;141.0%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR<sup>3</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$1,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Alexandria
Redev. &amp; Hsg. Auth., 3001 Park Cntr. Apts., Ser. A, 6.375%, 4/01/34</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">04/08
@ 103</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$  1,560,960</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,500 <sup>4</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Arlington
Cnty., GO, 5.00%, 2/01/21</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">02/11
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,596,255</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,250</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Arlington
Cnty. Ind. Dev. Auth., Hosp. Fac. Rev., Virginia Hosp. Ctr. Arlington Hlth. Sys.,
    5.25%, 7/01/31<br>
</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">07/11 @ 101</font></div></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>

<td>&nbsp;</td><td><div align="right"><font size="2">2,314,508</font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Celebrate
North Cmnty. Dev. Auth. Spl. Assmt. Rev., Ser. B, 6.75%, 3/01/34</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">03/14
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,527,150</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Danville
Ind. Dev. Auth., Hosp. Rev., Danville Regl. Med. Ctr, 5.25%, 10/01/28, AMBAC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,695,735</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">NR<sup>3</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Dulles
Town Ctr. Cmnty. Dev. Auth., Spl. Assmt. Tax, Dulles Town Ctr. Proj., 6.25%, 3/01/26</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">03/08
@ 102</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,023,570</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Fairfax
Cnty. Wtr. Auth., Wtr. Rev, 5.00%, 4/01/27</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">04/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,578,510</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Hampton,
GO, 5.00%, 4/01/20</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">04/12
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,080,190</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A-</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Henrico
Cnty. Econ. Dev. Auth., Bon Secours Hlth. Sys. Inc., Ser. A, 5.60%, 11/15/30</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">11/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,562,220</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">BBB</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,300</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Isle
Wight Cnty. Indl. Dev. Auth., Env. Impvt. Rev., Ser. A, 5.70%, 11/01/27</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">11/13
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,346,527</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Met.
Arpts. Auth., Arpt. Sys. Rev., Ser. A, 5.25%, 10/01/32, FGIC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">10/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,577,400</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Norfolk
Arpt. Auth., Ser. A, 5.125%, 7/01/31, FGIC</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/11
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,560,750</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">A</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Pocahontas
Pkwy. Assoc., Toll Road Rev., Ser. B, Zero Coupon, 8/15/22, ACA</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td><div align="center"><font size="2">08/08
  @ 45.5</font></div></td>
<td>&nbsp;</td>
<td>&nbsp;</td><td>&nbsp;</td>
<td align=right><font size="2">1,720,450</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,375</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Prince
William Cnty., COP, 5.00%, 12/01/21</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">06/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,460,016</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,250</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Richmond
Met. Auth., Expwy. Rev., 5.25%, 7/15/22, FGIC</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,441,400</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Richmond
Pub. Util., 5.00%, 1/15/33, FSA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">01/12
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,132,960</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Virginia
Coll. Bldg. Auth., Edl. Facs. Rev., Washington &amp; Lee Univ. Proj., MBIA,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  5.25%,
1/01/26</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">No
Opt. Call</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">570,785</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AAA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,000</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  5.25%,
1/01/31</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">No
Opt. Call</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,149,060</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AAA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Virginia
Hsg. Dev. Auth., Comnwlth. Mtg. Rev., Ser. H, 5.375%, 7/01/36, MBIA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">07/11
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,084,780</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Virginia
Res. Auth.,</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Infrastructure
Rev., Ser. A, 5.00%, 5/01/22</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>

<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">05/11
@ 101</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,058,450</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">AA</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">635</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">  Infrastructure
Rev., Ser. A, 5.125%, 5/01/27</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">05/11
@ 101</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">670,801</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">AA</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">  Wtr.
&amp; Swr. Sys. Rev., Frederick Cnty. Sanitation Auth. Proj., 5.20%, 10/01/28</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">10/10
@ 100</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,577,340</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">34,289,817</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Delaware&#151;6.6%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">NR<sup>3</sup></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,500 <sup>5</sup></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Charter
Mac Equity Issuer Trust, Ser. B-2, 7.20%, 10/31/52</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">10/14
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,611,930</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Puerto
Rico&#151;5.8%</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2"><b>&nbsp;</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><font size="2">BBB</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,490</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Children&#146;s
Trust Fund, Tobacco Settlement Rev., 5.375%, 5/15/33</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">05/12
@ 100</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,419,508</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2"><b>Total
Investments&#151;153.4% (cost $34,797,420)</b></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$
37,321,255</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2">Other
assets in excess of liabilities&#151;2.2%</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">529,382</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Preferred
shares at redemption value, including dividends payable&#151;(55.6)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(13,525,445)</font></td>
</tr>
<tr valign=top><td COLSPAN='40' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Net
Assets Applicable to Common Shareholders&#151;100%</b></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 24,325,192</font></td>
</tr>
<tr valign=top><td COLSPAN='40' ><HR noshade size=3></td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Using the higher of S&amp;P&#146;s,
Moody&#146;s or Fitch&#146;s rating.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Date (month/year) and price of the
earliest call or redemption. There may be other call provisions at varying prices
at later dates.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is deemed to be of investment
grade quality by the investment advisor.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Entire or partial principal amount
pledged as collateral for financial futures contracts.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in accordance
with Rule 144A under that Act, to qualified institutional buyers. As of February
29, 2004, the Trust held 6.6% of its net assets, with a current market value of
$1,611,930, in securities restricted as to resale.</font></td>

<td>&nbsp;</td></tr>
</table>
<p>
<hr noshade>
<div align="center">
  <p><font size="2"><b>KEY TO ABBREVIATIONS</b></font> </p>
  <p>&nbsp; </p>
</div>
<table width="100%" border="0">
  <tr>
    <td><font size="2">ACA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American Capital
        Access&nbsp;</font></td>
    <td>&nbsp;</td>
    <td><font size="2">FSA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Security
    Assurance</font></td>
  </tr>
  <tr>
    <td width="46%"><font size="2">AMBAC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; American
        Municipal Bond Assurance Corporation&nbsp;</font></td>
    <td width="2%">&nbsp;</td>
    <td width="52%"><font size="2">GO&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; General
    Obligation</font></td>
  </tr>
  <tr>
    <td><font size="2">COP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Certificate of
        Participation</font></td>
    <td>&nbsp;</td>
    <td><font size="2">MBIA&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Municipal Bond
    Insurance Association</font></td>
  </tr>
  <tr>
    <td><font size="2">FGIC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151; Financial Guaranty
        Insurance Company&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<p>
<hr noshade>
<p>
<p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><font size="2">&nbsp;&nbsp;</font>
<p><p align='center'>39
<HR noshade size=4><PAGE>

<p><font size="3"><b>STATEMENTS OF ASSETS AND LIABILITIES
(unaudited)<br>
</b><strong>February 29, 2004</strong></font><strong>
</strong>
<hr noshade>
<p><p><table width="100%" border="0" cellpadding="0" cellspacing="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td><div align="center"><strong><font size="2">California</font></strong></div></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Insured</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Insured</font></strong></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal </font></strong></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Income Trust</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Bond Trust</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Income Trust II</font></strong></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td><div align="center"><strong><font size="2">Income Trust</font></strong></div></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">(BYM)</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">(BBK)</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">(BLE)</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">(BCK)</font></strong></td>
</tr>
<tr valign=top><td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  </tr>
<tr valign=top><td COLSPAN='16' align=left bgcolor="#DDDDDD"><font size="3"><font size="3"><strong>Assets</strong></font></font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Investments
at value<sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $625,321,571 </font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td><div align="right"><font size="2"> $246,837,603 </font></div></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td><div align="right"><font size="2"> $541,347,604 </font></div></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td><div align="right"><font size="2"> $123,208,524 </font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 504,420 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 545,252 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 517,299 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 506,645 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable
from investments sold</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> &#151; </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> &#151; </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> &#151; </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> &#151; </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
receivable</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 6,440,900 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 3,238,169 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,554,020 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 1,447,116 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
assets</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 51,139 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 7,068 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 49,154 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 8,378 </font></td>
</tr>
<tr valign=top><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 632,318,030 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 250,628,092 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 549,468,077 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 125,170,663 </font></td>
</tr>
<tr valign=top><td COLSPAN='16' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='16' align=left><font size="3"><font size="3"><b>Liabilities</b></font></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Payable
to custodian</font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> &#151; </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> &#151; </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> &#151; </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> &#151; </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variation
margin payable</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 631,750 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 232,750 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 536,813 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 134,750 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
payable &#151; common shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 2,042,917 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 874,379 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 1,907,915 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 395,030 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
advisory fee payable</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 171,422 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 77,997 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 170,471 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 33,939 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred
Trustees fees</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 21,129 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 11,009 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 20,212 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 3,158 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
accrued expenses</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 90,036 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 125,930 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 87,848 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 42,480 </font></td>
</tr>
<tr valign=top><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 2,957,254 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 1,322,065 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 2,723,259 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 609,357 </font></td>
</tr>
<tr valign=top><td COLSPAN='16' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='16' align=left><font size="3"><font size="3"><b>Preferred
Shares at Redemption Value</b></font></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><font size="2">$.001
par value per share and $25,000 liquidation <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;value
per share, including dividends payable<sup>2</sup></font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"> </td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">229,006,446 </font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2"> 90,509,006 </font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2"> 205,571,978 </font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2"> 46,508,035 </font></td>
</tr>
<tr valign=top><td COLSPAN='16' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="3"><font size="3"><b>Net
Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders</b></font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $400,354,330 </font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom">&nbsp;</td>
<td valign="bottom"><div align="right"><font size="2"> $158,797,021 </font></div></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom">&nbsp;</td>
<td valign="bottom"><div align="right"><font size="2"> $341,172,840 </font></div></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom">&nbsp;</td>
<td valign="bottom"><div align="right"><font size="2"> $ 78,053,271 </font></div></td>
</tr>
<tr valign=top><td COLSPAN='16' ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='18' align=left bgcolor="#DDDDDD"><font size="2">Composition
of Net Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Par
value</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $   26,149 </font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td><div align="right"><font size="2"> $ 10,123 </font></div></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td><div align="right"><font size="2"> $ 22,781 </font></div></td>
<td align=right>&nbsp;</td>
<td>&nbsp;</td>
<td><div align="right"><font size="2"> $ 5,267 </font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in
capital in excess of par</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 371,097,993 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 143,571,298 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 323,306,246 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 74,673,578 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed
(distributions in excess of) net <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;investment
income</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 2,144,534 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 2,525,034 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 2,756,520 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 431,298 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
net realized gain (loss)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (9,063,000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (614,361)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (7,848,908)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (448,547)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
unrealized appreciation</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 36,148,654 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 13,304,927 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 22,936,201 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 3,391,675 </font></td>
</tr>
<tr valign=top><td COLSPAN='16' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
assets applicable to common shareholders,<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;February
29, 2004</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> $400,354,330 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD"><div align="right"><font size="2"> $158,797,021 </font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD"><div align="right"><font size="2"> $341,172,840 </font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD"><div align="right"><font size="2"> $ 78,053,271 </font></div></td>
</tr>
<tr valign=top><td COLSPAN='16' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>




<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value per common share<sup>3</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$15.31 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$15.69 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$14.98 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$14.82 </font></td>
</tr>
<tr valign=top><td COLSPAN='16' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2"><sup>1
</sup>Investments at cost</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $588,855,964 </font></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td><div align="right"><font size="2"> $233,415,896 </font></div></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td><div align="right"><font size="2"> $518,142,075 </font></div></td>
<td>&nbsp;</td>
<td align=right>&nbsp;</td>
<td><div align="right"><font size="2"> $119,749,319 </font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><sup>2 </sup>Preferred
shares outstanding</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 9,159 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 3,620 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 8,222 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 1,860 </font></td>
</tr>
<tr valign=top><td align=left><font size="2"><sup>3 </sup>Common shares outstanding</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 26,149,334 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 10,123,055 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 22,781,072 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 5,267,067 </font></td>
</tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p align='center'>40
<HR noshade size=4><PAGE>

<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td >&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td align=center><strong><font size="2">&nbsp;</font></strong></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center> <div align="center"></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"></div></td>
    <td><div align="center"><strong><font size="2">Florida</font></strong></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"></div></td>
    <td><div align="center"></div></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><div align="center"><strong><font size="2">California </font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">California</font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">Insured</font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">Florida</font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">Maryland </font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">New Jersey</font></strong></div></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><div align="center"><strong><font size="2">Municipal </font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">Municipal </font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">Municipal </font></strong></div></td>
    <td><div align="center"></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"><strong><font size="2">Municipal </font></strong></div></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center>&nbsp;</td>
    <td><div align="center"><strong><font size="2">Bond Trust</font></strong></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"></div></td>
    <td><div align="center"><strong><font size="2">Income Trust II</font></strong></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"></div></td>
    <td><div align="center"><strong><font size="2">Income Trust</font></strong></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"></div></td>
    <td><div align="center"><strong><font size="2">Bond Trust</font></strong></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"></div></td>
    <td><div align="center"><strong><font size="2">Bond Trust</font></strong></div></td>
    <td><div align="center"></div></td>
    <td align=center><div align="center"></div></td>
    <td><div align="center"><strong><font size="2"> Bond Trust</font></strong></div></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><strong><font size="2">(BZA)</font></strong></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><strong><font size="2">(BCL)</font></strong></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><strong><font size="2">(BAF)</font></strong></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><strong><font size="2">(BIE)</font></strong></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><strong><font size="2">(BZM)</font></strong></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><strong><font size="2">(BLJ)</font></strong></td>
  </tr>
  <tr valign=top>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td ><hr noshade size=2>
    </td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td ><hr noshade size=2>
    </td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td ><hr noshade size=2>
    </td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td ><hr noshade size=2>
    </td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td ><hr noshade size=2>
    </td>
    <td >&nbsp;</td>
    <td >&nbsp;</td>
    <td ><hr noshade size=2>
    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='24' align=left bgcolor="#DDDDDD"><font size="3"><font size="3"><strong>Assets</strong></font></font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Investments
          at value<sup>1</sup></font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2"> $79,890,753 </font></div>
    </td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2"> $184,635,692 </font></div>
    </td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2"> $204,551,843 </font></div>
    </td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2"> $80,719,961 </font></div>
    </td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2"> $48,521,596 </font></div>
    </td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2"> $54,950,626 </font></div>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 507,429 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 512,416 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 532,579 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 371,856 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 540,463 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> &#151; </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable
        from investments sold</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> &#151; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 5,150 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> &#151; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> &#151; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> &#151; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> &#151; </font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
        receivable</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 1,036,450 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 2,788,216 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 2,951,750 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 1,282,688 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 613,661 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 650,626 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
        assets</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 1,442 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 16,416 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 14,794 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 5,269</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 5,404 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 7,829 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='24' ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 81,436,074 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 187,957,890 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 208,050,966 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 82,379,774 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 49,681,124 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 55,609,081 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='24' bgcolor="#DDDDDD" ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='16' align=left><font size="3"><font size="3"><b>Liabilities</b></font></font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Payable
          to custodian</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> &#151; </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> &#151; </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> &#151; </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> &#151; </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> &#151; </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 300,080 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Variation
        margin payable</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 82,687 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 223,125 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 188,125 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 64,750 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 38,320 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 59,063 </font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
        payable &#151; common shares</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 266,939 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 648,507 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 653,912 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 257,504 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 143,729 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 178,331 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
        advisory fee payable</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 22,045 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 58,185 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 56,304 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 22,297 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 13,460 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 14,992 </font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred
        Trustees fees</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 4,884 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 5,559 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 6,171 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 3,927 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 4,599 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 5,285 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
        accrued expenses</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 62,828 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 40,114 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 61,532 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 60,448 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 31,729 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 43,624 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='24' ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 439,383 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 975,490 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 966,044 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 408,926 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 231,837 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 601,375 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='24' bgcolor="#DDDDDD" ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='16' align=left><font size="3"><font size="3"><b>Preferred Shares
            at Redemption Value</b></font></font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"><font size="2">$.001 par
          value per share and $25,000 liquidation <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      value per share, including dividends payable<sup>2</sup></font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"> </td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2"> 29,980,179 </font></td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2"> 71,956,487 </font></td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2"> 76,011,621 </font></td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2"> 29,778,001 </font></td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2"> 18,000,963 </font></td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2"> 20,228,093 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='24' bgcolor="#DDDDDD" ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="3"><font size="3"><b>Net Assets Applicable to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Common Shareholders</b></font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"><font size="2">&nbsp;</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom">&nbsp;</td>
    <td valign="bottom"><div align="right"><font size="2"> $51,016,512 </font></div></td>
    <td valign="bottom"><div align="right"></div></td>
    <td align=right valign="bottom"><div align="right"></div></td>
    <td valign="bottom"><div align="right"><font size="2"> $115,025,913 </font></div></td>
    <td valign="bottom"><div align="right"></div></td>
    <td align=right valign="bottom"><div align="right"></div></td>
    <td valign="bottom"><div align="right"><font size="2"> $131,073,301 </font></div></td>
    <td valign="bottom"><div align="right"></div></td>
    <td align=right valign="bottom"><div align="right"></div></td>
    <td valign="bottom"><div align="right"><font size="2"> $52,192,847 </font></div></td>
    <td valign="bottom"><div align="right"></div></td>
    <td align=right valign="bottom"><div align="right"></div></td>
    <td valign="bottom"><div align="right"><font size="2"> $31,448,324 </font></div></td>
    <td valign="bottom"><div align="right"></div></td>
    <td align=right valign="bottom"><div align="right"></div></td>
    <td valign="bottom"><div align="right"><font size="2"> $34,779,613 </font></div></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='24' ><HR noshade size=3>
    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='26' align=left bgcolor="#DDDDDD"><font size="2">Composition
        of Net Assets Applicable to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Common Shareholders:</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Par value</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2"> $ 3,351 </font></div>
    </td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2"> $ &nbsp; 7,982 </font></div>
    </td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2"> $ 8,719 </font></div>
    </td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2"> $ 3,309 </font></div>
    </td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2"> $ 2,014 </font></div>
    </td>
    <td align=right>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2"> $ 2,269 </font></div>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in
        capital in excess of par</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 47,456,833 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 113,214,438 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 123,687,058 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 46,855,683 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 28,485,946 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 32,099,779 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed
        (distributions in excess of) net <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      investment income</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 783,933 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (56,351)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 476,364 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 691,130 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 452,338 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 453,199 </font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
        net realized gain (loss)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (269,141)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (3,624,633)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (578,641)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (212,116)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (227,028)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 25,113 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized
        appreciation</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 3,041,536 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 5,484,477 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 7,479,801 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 4,854,841 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 2,735,054 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 2,199,253 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='24' ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">Net assets applicable to
        common shareholders,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      February 29, 2004</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD"><div align="right"><font size="2"> $51,016,512 </font></div></td>
    <td bgcolor="#DDDDDD"><div align="right"></div></td>
    <td align=right bgcolor="#DDDDDD"><div align="right"></div></td>
    <td bgcolor="#DDDDDD"><div align="right"><font size="2"> $115,025,913 </font></div></td>
    <td bgcolor="#DDDDDD"><div align="right"></div></td>
    <td align=right bgcolor="#DDDDDD"><div align="right"></div></td>
    <td bgcolor="#DDDDDD"><div align="right"><font size="2"> $131,073,301 </font></div></td>
    <td bgcolor="#DDDDDD"><div align="right"></div></td>
    <td align=right bgcolor="#DDDDDD"><div align="right"></div></td>
    <td bgcolor="#DDDDDD"><div align="right"><font size="2"> $52,192,847 </font></div></td>
    <td bgcolor="#DDDDDD"><div align="right"></div></td>
    <td align=right bgcolor="#DDDDDD"><div align="right"></div></td>
    <td bgcolor="#DDDDDD"><div align="right"><font size="2"> $31,448,324 </font></div></td>
    <td bgcolor="#DDDDDD"><div align="right"></div></td>
    <td align=right bgcolor="#DDDDDD"><div align="right"></div></td>
    <td bgcolor="#DDDDDD"><div align="right"><font size="2"> $34,779,613 </font></div></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='24' bgcolor="#DDDDDD" ><HR noshade size=3>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">Net asset value per common
        share<sup>3</sup></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$15.22 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$14.41 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$15.03 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$15.77 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$15.61 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$15.33 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='24' bgcolor="#DDDDDD" ><HR noshade size=3>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><sup>1 </sup>Investments at cost</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2"> $76,807,824 </font></div></td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2"> $179,039,249 </font></div>
    </td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2"> $196,977,572 </font></div>
    </td>
    <td>&nbsp;</td>
    <td align=right>&nbsp;</td>
    <td><div align="right"><font size="2"> $75,832,770 </font></div></td>
    <td><div align="right"></div></td>
    <td align=right><div align="right"></div></td>
    <td><div align="right"><font size="2"> $45,766,131 </font></div></td>
    <td><div align="right"></div></td>
    <td align=right><div align="right"></div></td>
    <td><div align="right"><font size="2"> $52,721,818 </font></div></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"><sup>2 </sup>Preferred shares
        outstanding</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 1,199 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 2,878 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 3,040 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><div align="right"><font size="2"> 1,191 </font></div></td>
    <td bgcolor="#DDDDDD"><div align="right"></div></td>
    <td bgcolor="#DDDDDD"><div align="right"></div></td>
    <td align=right bgcolor="#DDDDDD"><div align="right"><font size="2"> 720 </font></div></td>
    <td bgcolor="#DDDDDD"><div align="right"></div></td>
    <td bgcolor="#DDDDDD"><div align="right"></div></td>
    <td align=right bgcolor="#DDDDDD"><div align="right"><font size="2"> 809 </font></div></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><sup>3 </sup>Common shares outstanding</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 3,351,150 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 7,981,621 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 8,718,823 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><div align="right"><font size="2"> 3,309,483 </font></div></td>
    <td><div align="right"></div></td>
    <td><div align="right"></div></td>
    <td align=right><div align="right"><font size="2"> 2,014,422 </font></div></td>
    <td><div align="right"></div></td>
    <td><div align="right"></div></td>
    <td align=right><div align="right"><font size="2">2,269,366</font></div>
  </tr>
</table>
<p>
<p><p align='center'>41
<HR noshade size=4><PAGE>

<p><font size="3"><b>STATEMENTS
OF ASSETS AND LIABILITIES (unaudited) (continued)<br>
</b></font><font size="3"><strong>February 29, 2004</strong></font><strong>
</strong>
<hr noshade>
<p>
<table width="100%" border="0" cellpadding="0" cellspacing="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">New York</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td align=center></td>

</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Insured</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">New York </font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">New York </font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Virginia</font></strong></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal</font></strong></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2"> Income Trust</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Bond Trust</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Income Trust II</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Bond Trust</font></strong></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">(BSE)</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">(BQH)</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">(BFY)</font></strong></td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">(BHV)</font></strong></td>
</tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=right>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  </tr>
<tr valign=top><td COLSPAN='11' align=left bgcolor="#DDDDDD"><font size="3"><font size="3"><strong>Assets</strong></font></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2">Investments
at value<sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=right> </td>
<td>&nbsp;</td>
<td align=right><font size="2">$151,567,438 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> $65,242,307 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> $116,880,696 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> $37,321,255 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Cash</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 545,937 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 390,324 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 510,403 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 217,460 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">Interest receivable</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 1,639,764 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 852,124 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 1,381,393 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 485,821 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Other
assets</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 9,592 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 424 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 10,020 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 2,604 </font></td>
</tr>
<tr valign=top><td COLSPAN='11' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 153,762,731 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 66,485,179 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 118,782,512 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 38,027,140 </font></td>
</tr>
<tr valign=top><td COLSPAN='11' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='11' align=left bgcolor="#DDDDDD"><font size="3"><font size="3"><b>Liabilities</b></font></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2">Variation
margin payable</font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 139,563 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 53,375 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 94,500 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 35,875 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Dividends
payable &#151; common shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 482,740 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 208,244 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 388,652 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 110,085 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">Investment advisory
fee payable</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 41,691 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 18,035 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 36,827 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 10,289 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Deferred
Trustees fees</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 3,347 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 4,119 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 3,839 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 3,912 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">Other accrued
expenses</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 50,965 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 44,198 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 41,388 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 16,342 </font></td>
</tr>
<tr valign=top><td COLSPAN='11' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 718,306 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 327,971 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 565,206 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 176,503 </font></td>
</tr>
<tr valign=top><td COLSPAN='11' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='11' align=left><font size="3"><font size="3"><b>Preferred
Shares at Redemption Value</b></font></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><font size="2">$.001
par value per share and $25,000 liquidation <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;value
per share, including dividends payable<sup>2</sup></font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"> </td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"><br>
  56,002,765 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> <br>
  24,201,494 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> <br>
  44,653,919 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> <br>
  13,525,445 </font></td>
</tr>
<tr valign=top><td COLSPAN='11' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="3"><font size="3"><b>Net
Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders</b></font></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp; </font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 97,041,660 </font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $41,955,714 </font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $ 73,563,387 </font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $24,325,192 </font></td>
</tr>
<tr valign=top><td COLSPAN='11' ><HR noshade size=4></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Composition
of Net Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shareholders:</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"></td>

<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Par
value</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> $      6,437 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> $     2,701 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> $      4,935 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> $     1,520 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid-in
capital in excess of par</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 91,279,438 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 38,226,462 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 69,973,071 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 21,476,225 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed
(distributions in excess of) <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> <br>
  250,442 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> <br>
  503,625 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> <br>
  (125,577)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> <br>
  434,714 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
net realized gain (loss)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (616,397)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (331,117)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (1,059,271)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (93,218)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
unrealized appreciation</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 6,121,740 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 3,554,043 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 4,770,229 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 2,505,951 </font></td>
</tr>
<tr valign=top><td COLSPAN='11' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
assets applicable to common shareholders,<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;February
29, 2004</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> <br>
  $97,041,660 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> <br>
  $41,955,714 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> <br>
  $ 73,563,387 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> <br>
  $24,325,192 </font></td>
</tr>
<tr valign=top><td COLSPAN='11' bgcolor="#DDDDDD" ><HR noshade size=4></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
asset value per common share<sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$15.08 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$15.53 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$14.91 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$16.00 </font></td>
</tr>
<tr valign=top><td COLSPAN='11' ><HR noshade size=4></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><sup>1</sup>Investments
at cost</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> $145,375,754 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> $61,661,544 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> $112,063,016 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> $34,797,420 </font></td>
</tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup>Preferred
shares outstanding</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 2,240 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 968 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 1,786 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 541 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><sup>3</sup>Common
shares outstanding</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 6,436,539 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 2,700,991 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 4,935,268 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size=2>1,519,916</font></td>
</tr></table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p><p align='center'>42
<HR noshade size=4><PAGE>

<p>
<font size="3"><b>STATEMENTS OF OPERATIONS (unaudited)<br>
</b><strong>February 29, 2004</strong></font><strong>
</strong>
<hr noshade>
<p>
<table width="100%" border="0" cellpadding="0" cellspacing="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>

<td><div align="center"><strong><font size="2">California</font></strong></div></td>
</tr>
<tr valign=top><td align=left><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Insured</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2"> Insured</font></strong></td>
</tr>
<tr valign=top><td align=left><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal </font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2">Municipal</font></strong></td>
</tr>
<tr valign=top><td align=left><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2"> Income Trust </font></strong></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td><div align="center"><strong><font size="2"> Bond Trust </font></strong></div></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td><div align="center"><strong><font size="2"> Income Trust II </font></strong></div></td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>

<td><div align="center"><strong><font size="2">Income Trust </font></strong></div></td>
</tr>
<tr valign=top><td align=left><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><strong><font size="2">&nbsp;</font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2"> (BYM) </font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2"> (BBK) </font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2"> (BLE) </font></strong></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><strong><font size="2"> (BCK) </font></strong></td>
</tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=right>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
</tr>
<tr valign=top><td COLSPAN='21' align=left bgcolor="#DDDDDD"><font size="3"><font size="3"><strong>Investment
Income</strong></font></font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Interest
income </font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $15,411,794 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $ 6,955,467 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $15,044,696 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $ 3,034,352 </font></td>
</tr>
<tr valign=top><td COLSPAN='21'><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='21' align=left bgcolor="#DDDDDD"><font size="3"><font size="3"><b>Expenses</b></font></font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Investment
advisory</font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right> </td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">1,671,792 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 786,102 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 1,454,974 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 330,564 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer
agent</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Custodian</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">48,920</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">28,673</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">57,067</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 9,834 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports
to shareholders</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 32,838 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 16,129 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 26,374 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 11,412 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trustees</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 27,118 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 10,556 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 22,568 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 6,552 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 15,707 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 19,365 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 6,234 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 10,774 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent
accountants</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 21,814 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 20,358 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 21,812 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 19,779 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 20,240 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 9,401 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 20,065 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 5,860 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 25,540 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 9,045 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 19,711 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 4,115 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Auction
agent</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 294,130 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 121,107 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 273,270 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 61,037 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 22,291 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 15,157 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 20,388 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 10,648 </font></td>
</tr>
<tr valign=top><td COLSPAN='21' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
expenses</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 2,187,852 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,043,355 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 1,929,925 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 478,037</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
fees waived by Advisor</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (607,924)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (362,817)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (396,811)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (120,205)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
fees paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(1,211)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(1,593)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(5,015)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(2,463) </font></td>
</tr>
<tr valign=top><td COLSPAN='21' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
expenses</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 1,578,717 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 678,945 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 1,528,099 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 355,369 </font></td>
</tr>
<tr valign=top><td COLSPAN='21' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
investment income </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 13,833,077 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 6,276,522 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 13,516,597 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 2,678,983 </font></td>
</tr>
<tr valign=top><td COLSPAN='21' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='14' align=left><font size="3"><font size="3"><b>Realized
and Unrealized Gain (Loss)</b></font></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
realized gain (loss) on:</font></font></td>

<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (2,814,834)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 1,180,366 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 1,385,407 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (8,282)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (2,058,938)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (760,393)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (1,747,837)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (440,223)</font></td>
</tr>
<tr valign=top><td COLSPAN='21' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (4,873,772)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 419,973 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (362,430)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (448,505)</font></td>
</tr>
<tr valign=top><td COLSPAN='21' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
change in unrealized appreciation/depreciation on:</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 48,235,104 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 14,789,670 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 38,249,181 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 9,570,001 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (316,953)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (116,780)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (269,328)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (67,530)</font></td>
</tr>
<tr valign=top><td COLSPAN='21' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right> </td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">47,918,151 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 14,672,890 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 37,979,853 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 9,502,471 </font></td>
</tr>
<tr valign=top><td COLSPAN='21' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
gain</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 43,044,379 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 15,092,863 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 37,617,423 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 9,053,966 </font></td>
</tr>
<tr valign=top><td COLSPAN='21' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='14' align=left><font size="3"><font size="3"><b>Dividends
and Distributions to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred Shareholders
from:</b></font></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
investment income </font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (1,023,807)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (405,125)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (942,472)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (186,424)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains  </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> &#151; </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> &#151; </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> &#151; </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (5,802)</font></td>
</tr>
<tr valign=top><td COLSPAN='21' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Total
dividends and distributions</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (1,023,807)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (405,125)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (942,472)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (192,226)</font></td>
</tr>
<tr valign=top><td COLSPAN='21' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="3"><font size="3"><b>Net
Increase in Net Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
Shareholders Resulting <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from Operations</b></font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $55,853,649 </font></td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $20,964,260 </font></td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $50,191,548 </font></td>
<td>&nbsp;</td><td>&nbsp;</td>
<td valign="bottom"><div align="right"><font size="2">$11,540,723</font></div></td>
</tr>
<tr valign=top>
  <td colspan="16" align=left><HR noshade size=4></td>
  </tr>
</table>
<p><p>
<font size="2">See Notes to Financial Statements.</font><p><p><p><p align='center'>43
<HR noshade size=4><PAGE>

<p>
<font size="3"><b>STATEMENTS OF OPERATIONS (unaudited) (continued)<br>
</b><strong>February 29, 2004</strong></font>
<hr noshade>
<p><br>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top><td ><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"></div></td>
<td><div align="center"><strong><font size="2">California</font></strong></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"></div></td>
<td><div align="center"><strong><font size="2">Florida</font></strong></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
</tr>
<tr valign=top>
  <td align=left><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">California</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">Insured</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">Florida</font></strong></div></td>
</tr>
<tr valign=top><td align=left><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">Income</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div></td>
</tr>
<tr valign=top>
  <td align=left><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2">  Bond Trust </font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2"> Trust II </font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2"> Income Trust </font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2"> Bond Trust </font></strong></div></td>
</tr>
<tr valign=top><td align=left><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=right><div align="center"><strong><font size="2">&nbsp;</font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2"> (BZA) </font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2"> (BCL) </font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2"> (BAF) </font></strong></div></td>
<td><div align="center"></div></td>
<td><div align="center"></div></td>
<td align=center><div align="center"><strong><font size="2"> (BIE) </font></strong></div></td>
</tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=right>&nbsp;</td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  <td>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=center><hr noshade></td>
  </tr>
<tr valign=top><td COLSPAN='28' align=left bgcolor="#DDDDDD"><font size="3"><font size="3"><strong>Investment
Income</strong></font></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><font size="2">
  Interest income </font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $2,191,362 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $ 4,890,216 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $ 5,033,427 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> $2,166,534 </font></td>
</tr>
<tr valign=top><td COLSPAN='28' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='29' align=left bgcolor="#DDDDDD"><font size="3"><font size="3"><b>Expenses</b></font></font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Investment
advisory</font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 255,576 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 496,969 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 552,718 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 258,872 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer
agent</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Custodian</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 11,010 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 16,038 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 35,181 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 10,569 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports
to shareholders</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,452 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 14,014 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 14,280 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trustees</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 6,370 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 8,008 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 9,100 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 6,370 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 11,435 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 2,144 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 10,824 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 11,278 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent
accountants</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 19,514 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 20,038 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 19,671 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 19,510 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 5,991 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,916 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 7,972 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 5,989 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 2,924 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 6,744 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 7,729 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 2,984 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Auction
agent</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 39,902 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 100,566 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 97,460 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 37,159 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 10,334 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 11,714 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 12,226 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 10,336 </font></td>
</tr>
<tr valign=top><td COLSPAN='28' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
expenses</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 377,970 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">691,613 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 774,623 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 377,991 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
fees waived by Advisor</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (117,958)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (135,537)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (200,988)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (119,479)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
fees paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(1,537)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(2,061)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(20,985)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(1,096)</font></td>
</tr>
<tr valign=top><td COLSPAN='28' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
expenses</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 258,475 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 554,015 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 552,650 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 257,416 </font></td>
</tr>
<tr valign=top><td COLSPAN='28' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
investment income </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 1,932,887 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 4,336,201 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 4,480,777 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 1,909,118 </font></td>
</tr>
<tr valign=top><td COLSPAN='28' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='16' align=left><font size="3"><font size="3"><b>Realized
and Unrealized Gain (Loss)</b></font></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
realized gain (loss) on:</font></font></td>

<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 122,561 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 192,614 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 122,757 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (324,375)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (269,854)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (728,906)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (615,042)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (212,017)</font></td>
</tr>
<tr valign=top><td COLSPAN='28' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (147,293)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (536,292)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (492,285)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (536,392)</font></td>
</tr>
<tr valign=top><td COLSPAN='28' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
change in unrealized appreciation/depreciation on:</font></td>

<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 5,281,520 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 13,720,837 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 12,343,391 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 4,568,277 </font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (41,393)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (111,966)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (94,470)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (32,350)</font></td>
</tr>
<tr valign=top><td COLSPAN='28' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 5,240,127 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 13,608,871 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 12,248,921 </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> 4,535,927 </font></td>
</tr>
<tr valign=top><td COLSPAN='28' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
gain</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 5,092,834 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 13,072,579 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 11,756,636 </font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> 3,999,535 </font></td>
</tr>
<tr valign=top><td COLSPAN='28' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="3"><font size="3"><b>Dividends
and Distributions to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred Shareholders
from:</b></font></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
investment income </font></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (105,657)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (319,901)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (300,022)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (131,954)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains  </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (18,799)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> &#151; </font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (61,378)</font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"> (6,733)</font></td>
</tr>
<tr valign=top><td COLSPAN='28' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Total
dividends and distributions</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (124,456)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (319,901)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (361,400)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2"> (138,687)</font></td>
</tr>
<tr valign=top><td COLSPAN='28' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="3"><font size="3"><b>Net
Increase in Net Assets Applicable to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
Shareholders Resulting <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from Operations</b></font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2"><font size="2">&nbsp;</font></font></td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $6,901,265 </font></td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $17,088,879 </font></td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $15,876,013 </font></td>
<td valign="bottom">&nbsp;</td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2"> $5,769,966 </font></td>
</tr>
<tr valign=top>
  <td colspan="16" align=left><hr size="4" noshade></td>
  </tr>
</table>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p><p><p align='center'>44
<HR noshade size=4><PAGE>

<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td ><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=right><div align="center"><strong><font size="2">&nbsp;</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">&nbsp;</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">&nbsp;</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">&nbsp;</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"></div>
    </td>
    <td><div align="center"><strong><font size="2">New York </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">&nbsp;</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">&nbsp;</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><div align="center"><strong><font size="2">&nbsp;</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">Maryland</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">New Jersey</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">Insured</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">New York </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">New York </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">Virginia</font></strong></div>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><div align="center"><strong><font size="2">&nbsp;</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2">Municipal</font></strong></div>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><div align="center"><strong><font size="2">&nbsp;</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2"> Bond Trust </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2"> Bond Trust </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2"> Income Trust </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2"> Bond Trust </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"></div>
    </td>
    <td><div align="center"><strong><font size="2"> Income Trust II </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"></div>
    </td>
    <td><div align="center"><strong><font size="2"> Bond Trust </font></strong></div>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><div align="center"><strong><font size="2">&nbsp;</font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2"> (BZM) </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2"> (BLJ) </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2"> (BSE) </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2"> (BQH) </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2"> (BFY) </font></strong></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td><div align="center"></div>
    </td>
    <td align=center><div align="center"><strong><font size="2"> (BHV) </font></strong></div>
    </td>
  </tr>
  <tr valign=top>
    <td align=left>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><hr noshade>
    </td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><hr noshade>
    </td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><hr noshade>
    </td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><hr noshade>
    </td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><hr noshade>
    </td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=center><hr noshade>
    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' align=left bgcolor="#DDDDDD"><font size="3"><font size="3"><strong>Investment
            Income</strong></font></font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><font size="2"> Interest income </font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> $1,257,655 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> $1,497,259 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> $ 3,695,637 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> $1,748,603 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> $2,929,036 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> $ 975,328 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='38' align=left bgcolor="#DDDDDD"><font size="3"><font size="3"><b>Expenses</b></font></font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Investment
          advisory</font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 156,165 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 173,069 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 406,275 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 208,956 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 314,881 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 118,750 </font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer
        agent</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 7,462 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Custodian</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 9,559 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 10,601 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 24,985 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 10,145 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 8,994 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 9,595 </font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reports
        to shareholders</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 6,518 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 7,403 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 12,388 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 7,434 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 8,596 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 5,431 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trustees</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 6,188 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 6,188 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 6,734 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 6,370 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 6,552 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 6,188 </font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 605 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 699 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 10,790 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 11,435 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 1,296 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 440 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent
        accountants</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 19,343 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 19,368 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 19,682 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 19,432 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 19,685 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 10,745 </font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 5,294 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 5,303 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 5,841 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 5,329 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 5,795 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 5,278 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 1,797 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 2,107 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 5,397 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 2,427 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 4,259 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 1,450</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Auction
        agent</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 24,957 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 27,735 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 72,891 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 32,694 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 60,525 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 19,372 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 9,138 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 8,266 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 11,131 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 10,248 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 10,608 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 5,826 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
        expenses</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 247,026 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 268,201 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 583,576 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 321,932 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 448,653 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 190,537 </font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
        fees waived by Advisor</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (72,076)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (79,878)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (147,737)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (96,441)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (85,878)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (54,809)</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less
        fees paid indirectly</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">(335)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">(1,319)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">(16,158)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">(1,045)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">(1,334)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">(371)</font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' bgcolor="#DDDDDD" ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net expenses</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 174,615 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 187,004 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 419,681 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 224,446 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 361,441 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 135,357 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">Net investment income </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 1,083,040 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 1,310,255 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 3,275,956 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 1,524,157 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 2,567,595 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 839,971 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' bgcolor="#DDDDDD" ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td COLSPAN='17' align=left><font size="3"><font size="3"><b>Realized and
            Unrealized Gain (Loss)</b></font></font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          realized gain (loss) on:</font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (110,340)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 218,156 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (98,869)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (14,032)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (28,034)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (62,790)</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (124,463)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (192,953)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (459,489)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (174,348)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (308,552)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (117,743)</font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' bgcolor="#DDDDDD" ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (234,803)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 25,203 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (558,358)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (188,380)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (336,586)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (180,533)</font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
        change in unrealized appreciation/depreciation on:</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 2,635,277 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 3,492,190 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 10,915,628 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 3,772,790 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 7,959,674 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 2,408,994 </font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Futures</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (20,412)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (29,555)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (69,944)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (26,720)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (47,451)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (17,884)</font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' bgcolor="#DDDDDD" ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">&nbsp;</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 2,614,865 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 3,462,635 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 10,845,684 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 3,746,070 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 7,912,223 </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> 2,391,110 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">Net gain</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 2,380,062 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 3,487,838 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 10,287,326 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 3,557,690 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 7,575,637 </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> 2,210,577 </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' bgcolor="#DDDDDD" ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="3"><font size="3"><b>Dividends and Distributions
            to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Preferred Shareholders from:</b></font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">Net
          investment income </font></font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (79,784)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (78,448)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (225,408)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (83,914)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (198,389)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (52,856)</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized
        gains </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> &#151; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> (9,757)</font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> &#151; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> &#151; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> &#151; </font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right><font size="2"> &#151; </font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">Total dividends and distributions</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (79,784)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (88,205)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (225,408)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (83,914)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (198,389)</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2"> (52,856)</font></td>
  </tr>
  <tr valign=top>
    <td COLSPAN='37' bgcolor="#DDDDDD" ><HR noshade size=1>
    </td>
  </tr>
  <tr valign=top>
    <td align=left><font size="3"><font size="3"><b>Net Increase in Net Assets
            Applicable to <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Common Shareholders Resulting <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      from Operations</b></font></font></td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2"> $3,383,318 </font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2"> $4,709,888 </font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2"> $13,337,874 </font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2"> $4,997,933 </font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2"> $9,944,843 </font></td>
    <td valign="bottom">&nbsp;</td>
    <td valign="bottom">&nbsp;</td>
    <td align=right valign="bottom"><font size="2"> $2,997,692 </font></td>
  </tr>
  <tr valign=top>
    <td colspan="25" align=left><hr size="4" noshade>
    </td>
  </tr>
</table>
<p>
<p><p align='center'>45
<HR noshade size=4><PAGE>

<p><font size="3"><b>STATEMENTS
OF CHANGES IN NET ASSETS<br>For the six months ended February 29,
2004 (unaudited), and for the period<sup>1</sup> ended August 31, 2003</b></font>
<hr noshade>
<p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Insured
          Municipal Income Trust</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Municipal
          Bond Trust</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">(BYM)</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">(BBK)</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable
          to</FONT></B></TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders</FONT></B></TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Operations</FONT></B></TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">13,833,077</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">21,617,620</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">6,276,522</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">12,879,742</FONT></div></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gain (loss)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(4,873,772)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">(4,190,174)</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">419,973</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(805,556)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net change
        in unrealized appreciation/</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">depreciation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">47,918,151</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">(11,769,497)</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">14,672,890</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(6,670,938)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends
        and distributions to preferred</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">shareholders
        from:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        investment income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(1,023,807)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">(1,705,605)</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(405,125)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(995,851)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        realized gains</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><div align="right"><FONT size=2 face="serif"> &#151;</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (68,481)</FONT></TD>
  </TR>
  <TR>
    <TD colspan="12">            <HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net increase
        (decrease) in net assets resulting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">from
        operations</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 55,853,649</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><div align="right"><FONT size=2 face="serif"> 3,952,344</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 20,964,260</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 4,338,916</FONT></TD>
  </TR>
  <TR>
    <TD colspan="12">            <HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders from:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(12,257,500)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">(18,333,305)</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(5,246,268)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(10,290,066)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gains</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><div align="right"><FONT size=2 face="serif"> &#151;</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (529,092)</FONT></TD>
  </TR>
  <TR>
    <TD colspan="12">            <HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Total dividends and distributions</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (12,257,500)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><div align="right"><FONT size=2 face="serif"> (18,333,305)</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (5,246,268)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (10,819,158)</FONT></TD>
  </TR>
  <TR>
    <TD colspan="12">            <HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from the issuance of</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">common
        shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">343,210,001</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from the underwriters&#146;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">over-allotment
        option exercised</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">28,590,000</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Underwriting
        discounts and unused (additional)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">offering
        costs relating to the issuance of</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">preferred
        shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,051)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">(2,657,181)</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">128,162</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Reinvestment
        of common dividends</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 322,573</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><div align="right"><FONT size=2 face="serif"> 1,675,800</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 178,549</FONT></TD>
  </TR>
  <TR>
    <TD colspan="12">            <HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Net proceeds from capital share transactions</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 320,522</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><div align="right"><FONT size=2 face="serif"> 370,818,620</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 128,162</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 178,549</FONT></TD>
  </TR>
  <TR>
    <TD colspan="12">            <HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Total increase (decrease)</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 43,916,671</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><div align="right"><FONT size=2 face="serif"> 356,437,659</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 15,846,154</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (6,301,693)</FONT></TD>
  </TR>
  <TR>
    <TD colspan="12">            <HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Beginning of period</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 356,437,659</FONT></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><div align="right"><FONT size=2 face="serif"> &#151;</FONT></div></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 142,950,867</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 149,252,560</FONT></TD>
  </TR>
  <TR>
    <TD colspan="12">            <HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">400,354,330</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">356,437,659</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">158,797,021</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">142,950,867</FONT></div></TD>
  </TR>
  <TR>
    <TD colspan="12">                            <HR noshade size=4>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period undistributed net investment
        income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">2,144,534</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">1,592,764</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">2,525,034</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">1,899,905</FONT></div></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr align="left" width="150" size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=12><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Commencements
        of investment operations for the Insured Trusts were October 31, 2002.
        This information includes the initial investments by BlackRock Funding,
        Inc. The other Trusts&#146; statements are for a full year.</FONT></TD>
  </TR>
</TABLE>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p><p><p align='center'>46
<HR noshade size=4><PAGE>

<p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD align="center" colspan=3>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">California
          Insured</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">California
          Municipal</FONT></B></TD>
  </TR>
  <TR>
    <TD align="center">&nbsp;</TD>
    <TD colspan=5 align="center"><b><font size=2 face="serif">Municipal Income
    Trust II</font></b></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Municipal
          Income Trust</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Bond
          Trust</FONT></B></TD>
  </TR>
  <TR>
    <TD align="right"><div align="center"></div></TD>
    <TD colspan=5 align="right"><div align="center"><b><font size=2 face="serif">(BLE)</font></b></div></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">(BCK)</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">(BZA)</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;    </TD>
    <TD colspan=5><hr noshade size=2></TD>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD align="right"><div align="center"></div></TD>
    <TD colspan=2 align="right"><div align="center"><b><font size=2 face="serif">2004</font></b></div></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;    </TD>
    <TD colspan=2><hr noshade size=2></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable
          to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Operations</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">13,516,597</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">25,913,002</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">2,678,983</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">4,154,466</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">1,932,887</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">3,923,657</FONT></div></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gain (loss)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(362,430)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(7,486,568)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(448,505)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">73,698</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(147,293)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">333,162</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net change
        in unrealized appreciation/</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">depreciation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">37,979,853</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(16,689,310)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">9,502,471</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(6,110,796)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">5,240,127</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(4,389,282)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends
        and distributions to preferred</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">shareholders
        from:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        investment income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(942,472)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,206,764)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(186,424)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(309,490)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(105,657)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(285,766)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        realized gains</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> &#151;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (5,802)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (18,799)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (36,465)</FONT></TD>
  </TR>
  <TR>
    <TD colspan=3><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net increase
        (decrease) in net assets resulting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">from
        operations</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 50,191,548</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (469,640)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 11,540,723</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (2,192,122)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 6,901,265</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (454,694)</FONT></TD>
  </TR>
  <TR>
    <TD colspan=3><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders from:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(11,447,483)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(22,875,695)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,369,969)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(3,551,261)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(1,601,633)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(3,151,958)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gains</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif">&#151;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (67,945)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (223,187)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (278,186)</FONT></TD>
  </TR>
  <TR>
    <TD colspan=3><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD align="right"><div align="left"><FONT size=2 face="serif">Total dividends and
    distributions</FONT></div></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> (11,447,483)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (22,875,695)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (2,437,914)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (3,551,261)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (1,824,820)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (3,430,144)</FONT></TD>
  </TR>
  <TR>
    <TD colspan=3><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from the issuance of</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">common
        shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">71,605,001</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from the underwriters&#146;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">over-allotment
        option exercised</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(9,000)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">4,288,500</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,573,750</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Underwriting
        discounts and unused (additional)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">offering
        costs relating to the issuance of</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">preferred
        shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,294,668)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(609,518)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(21,849)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Reinvestment
        of common dividends</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 101,149</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 205,295</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 40,555</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 84,057</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 12,499</FONT></TD>
  </TR>
  <TR>
    <TD colspan=3><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD align="right"><div align="left"><FONT size=2 face="serif">Net proceeds from
    capital share transactions</FONT></div></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 92,149</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 2,199,127</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 40,555</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 74,653,290</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (9,350)</FONT></TD>
  </TR>
  <TR>
    <TD colspan=3><HR align="left" size=2 noshade>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD align="right"><div align="left"><FONT size=2 face="serif">Total increase (decrease)</FONT></div></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 38,836,214</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (21,146,208)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 9,143,364</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 68,909,907</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 5,076,445</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (3,894,188)</FONT></TD>
  </TR>
  <TR>
    <TD colspan=3><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Beginning of period</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 302,336,626</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 323,482,834</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 68,909,907</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 45,940,067</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 49,834,255</FONT></TD>
  </TR>
  <TR>
    <TD colspan=3><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif"> 341,172,840</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">302,336,626</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">78,053,271</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">68,909,907</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">51,016,512</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">45,940,067</FONT></div></TD>
  </TR>
  <TR>
    <TD colspan=3><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD colspan=2><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD colspan=2><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD colspan=2><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD colspan=2><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period undistributed net
    investment income</FONT></TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">2,756,520</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">1,629,878</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">431,298</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">308,708</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">783,933</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">$</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">558,336</FONT></TD>
  </TR>
</TABLE>
<p>
<p><p align='center'>47
<HR noshade size=4><PAGE>

<p><font size="3"><b>STATEMENTS
OF CHANGES IN NET ASSETS (continued)<br>For the six months ended
February 29, 2004 (unaudited), and for the period<sup>1</sup> ended August 31, 2003</b></font>
<hr noshade>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">California</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Florida
          Insured</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Municipal
          Income Trust II</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Municipal
          Income Trust</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">(BCL)</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">(BAF)</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable
          to</FONT></B></TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders</FONT></B></TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Operations</FONT></B></TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">4,336,201</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">8,139,709</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">4,480,777</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><FONT size=2 face="serif">6,649,133</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gain (loss)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(536,292)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(3,089,325)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(492,285)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">632,254</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net change
        in unrealized appreciation/</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">depreciation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">13,608,871</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(8,940,916)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">12,248,921</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(4,769,120)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends
        and distributions to preferred</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">shareholders
        from:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        investment income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(319,901)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(699,743)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(300,022)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(563,529)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        realized gains</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (61,378)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Net increase (decrease) in net assets resulting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">from operations</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 17,088,879</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (4,590,275)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 15,876,013</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 1,948,738</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders from:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(3,890,461)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(7,764,974)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(3,923,470)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(5,881,358)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gains</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (657,399)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Total dividends and distributions</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (3,890,461)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (7,764,974)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (4,580,869)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (5,881,358)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from the issuance of</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">common
        shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">114,493,001</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from the underwriters&#146;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">over-allotment
        option exercised</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(4,500)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">2,144,250</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">10,006,500</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Underwriting
        discounts and additional offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">costs
        relating to the issuance of preferred</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(849,475)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(944,848)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Reinvestment
        of common dividends</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 93,848</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 222,296</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 156,124</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Net proceeds from capital share transactions</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 89,348</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 1,517,071</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 123,710,777</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Total increase (decrease)</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 13,287,766</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (10,838,178)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 11,295,144</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 119,778,157</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Beginning of period</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 101,738,147</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 112,576,325</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 119,778,157</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">115,025,913</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">101,738,147</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">131,073,301</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">119,778,157</FONT></div></TD>
  </TR>
  <TR>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period undistributed (distributions
        in excess)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">of net
        investment income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">(56,351)</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">(182,190)</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">476,364</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">219,079</FONT></div></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan="2"><hr align="left" width="150" size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=12><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Commencements
        of investment operations for the Insured Trusts were October 31, 2002.
        This information includes the initial investments by BlackRock Funding,
        Inc. The other Trusts&#146; statements are for a full year.</FONT></TD>
  </TR>
</TABLE>
<p>
<p>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p><p align='center'>48
<HR noshade size=4><PAGE>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD align="center" colspan=6>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B></B></TD>
  </TR>
  <TR>
    <TD align="center">&nbsp;</TD>
    <TD colspan=5 align="center"><B><FONT size=2 face="serif">Florida</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Maryland</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">New Jersey</FONT></B></TD>
  </TR>
  <TR>
    <TD align="center">&nbsp;</TD>
    <TD colspan=5 align="center"><b><font size=2 face="serif">Municipal Bond
    Trust</font></b></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Municipal
          Bond Trust</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Municipal
          Bond Trust</FONT></B></TD>
  </TR>
  <TR>
    <TD align="right"><div align="center"></div>
    </TD>
    <TD colspan=5 align="right"><div align="center"><b><font size=2 face="serif">(BIE)</font></b></div></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">(BZM)</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">(BLJ)</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;    </TD>
    <TD colspan=5><hr noshade size=2></TD>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD align="right"><div align="center"></div>
    </TD>
    <TD colspan=2 align="right"><div align="center"><b><font size=2 face="serif">2004</font></b></div></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;    </TD>
    <TD colspan=2><hr noshade size=2></TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
</TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable
          to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Operations</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">1,909,118</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">3,763,594</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">1,083,040</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">2,158,263</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">1,310,255</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><FONT size=2 face="serif">2,593,490</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gain (loss)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(536,392)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">617,109</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(234,803)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">93,425</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">25,203</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">192,616</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net change
        in unrealized appreciation/</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">depreciation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">4,535,927</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,067,781)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">2,614,865</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(1,028,809)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,462,635</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,102,018)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends
        and distributions to preferred</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">shareholders
        from:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        investment income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(131,954)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(294,203)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(79,784)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(192,706)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(78,448)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(194,504)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        realized gains</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> (6,733)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (25,515)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (11,022)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (9,757)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (16,272)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><hr noshade size=2></TD>
    <TD><hr noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Net increase (decrease) in net assets resulting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">from operations</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 5,769,966</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 1,993,204</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 3,383,318</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 1,019,151</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 4,709,888</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 473,312</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><hr noshade size=2></TD>
    <TD><hr noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders from:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(1,545,024)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(3,038,237)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(862,266)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(1,696,742)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(1,069,986)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,110,955)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gains</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> (74,132)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (186,453)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (72,550)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (111,653)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (143,682)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><hr noshade size=2></TD>
    <TD><hr noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Total dividends and distributions</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> (1,619,156)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (3,224,690)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (862,266)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (1,769,292)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (1,181,639)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (2,254,637)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><hr noshade size=2></TD>
    <TD><hr noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from the issuance of</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">common
        shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from the underwriters&#146;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">over-allotment
        option exercised</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Underwriting
        discounts and additional offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">costs
        relating to the issuance of preferred</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(28,492)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(50,675)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(48,427)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Reinvestment
        of common dividends</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif">&#151;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 18,121</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 4,619</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 18,519</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 25,241</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 75,007</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><hr noshade size=2></TD>
    <TD><hr noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Net proceeds from capital share transactions</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> &#151;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (10,371)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 4,619</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (32,156)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 25,241</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 26,580</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><hr noshade size=2></TD>
    <TD><hr noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Total increase (decrease)</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 4,150,810</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (1,241,857)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 2,525,671</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (782,297)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 3,553,490</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (1,754,745)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><hr noshade size=2></TD>
    <TD><hr noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Beginning of period</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 48,042,037</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 49,283,894</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 28,922,653</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 29,704,950</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 31,226,123</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 32,980,868</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><hr noshade size=2></TD>
    <TD><hr noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif"> 52,192,847</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">48,042,037</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">31,448,324</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">28,922,653</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">34,779,613</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><FONT size=2 face="serif">31,226,123</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period undistributed (distributions
        in excess)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">of net
        investment income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">691,130</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">458,990</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">452,338</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">311,348</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">453,199</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><FONT size=2 face="serif">291,378</FONT></TD>
  </TR>
</TABLE>
<p>
<p><p align='center'>49
<HR noshade size=4><PAGE>

<p><font size="3"><b>STATEMENTS
OF CHANGES IN NET ASSETS (continued)<br>For the six months ended
February 29, 2004 (unaudited), and for the period<sup>1</sup> ended August 31, 2003</b></font>
<hr noshade>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">New
          York Insured</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">New
          York</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Municipal
          Income Trust</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">Municipal
          Bond Trust</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">(BSE)</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=5><B><FONT size=2 face="serif">(BQH)</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=5><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2004</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable
          to</FONT></B></TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders</FONT></B></TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Operations</FONT></B></TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">3,275,956</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">4,829,121</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">1,524,157</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">3,032,080</FONT></div></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gain (loss)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(558,358)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(58,730)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(188,380)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(143,156)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net change
        in unrealized appreciation/</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">depreciation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">10,845,684</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(4,723,944)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">3,746,070</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(1,803,841)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends
        and distributions to preferred</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">shareholders
        from:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        investment income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(225,408)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(420,505)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(83,914)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(249,849)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        realized gains</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (21,352)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Net increase (decrease) in net assets resulting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">from operations</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 13,337,874</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (374,058)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 4,997,933</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 813,882</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders from:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,895,837)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(4,327,194)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(1,249,459)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,475,984)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gains</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (155,250)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Total dividends and distributions</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (2,895,837)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (4,327,194)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (1,249,459)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (2,631,234)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from issuance of common shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">85,901,501</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from the underwriters&#146;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">over-allotment
        option exercised</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">5,718,000</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Underwriting
        discounts and additional offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">costs
        relating to the issuance of preferred</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(711,970)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(37,459)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Reinvestment
        of common dividends</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 168,608</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 224,736</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Net proceeds from capital share transactions</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 168,608</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 91,132,267</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (37,459)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Total increase (decrease)</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 10,610,645</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 86,431,015</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 3,748,474</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (1,854,811)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Beginning of period</FONT></TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 86,431,015</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 38,207,240</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 40,062,051</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">97,041,660</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">86,431,015</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">41,955,714</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">38,207,240</FONT></div></TD>
  </TR>
  <TR>
    <TD><HR noshade size=4></TD>
    <TD><HR align="right" size=4 noshade>
    </TD>
    <TD><HR align="right" size=4 noshade>
    </TD>
    <TD><HR align="right" size=4 noshade></TD>
    <TD><HR align="right" size=4 noshade>
    </TD>
    <TD><HR align="right" size=4 noshade>
    </TD>
    <TD><HR align="right" size=4 noshade></TD>
    <TD><HR align="right" size=4 noshade>
    </TD>
    <TD><HR align="right" size=4 noshade>
    </TD>
    <TD><HR align="right" size=4 noshade></TD>
    <TD><HR align="right" size=4 noshade>
    </TD>
    <TD><HR align="right" size=4 noshade>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period undistributed (distributions
        in excess)</FONT></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"></div></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">of net
        investment income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">250,442</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">95,731</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">503,625</FONT></div></TD>
    <TD><div align="right"></div></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div></TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">312,841</FONT></div></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><hr align="left" width="150" size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=12><SUP><FONT size=1 face="serif">1 </FONT></SUP><FONT size=1 face="serif">Commencements
        of investment operations for the Insured Trusts were October 31, 2002.
        This information includes the initial investments by BlackRock Funding,
        Inc. The other Trusts&#146; statements are for a full year.</FONT></TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<p>
<p><p align="center">
<font size="2">See Notes to Financial Statements.</font>
<p><p><p><p align='center'>50
<HR noshade size=4><PAGE>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><div align="center"></div>
    </TD>
    <TD colspan=4 align="center"><b><font size=2 face="serif">New York</font></b></TD>
    <TD><div align="center"></div>
    </TD>
    <TD align="center" colspan=5><div align="center"><B><FONT size=2 face="serif">Virginia</FONT></B></div>
    </TD>
  </TR>
  <TR>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><div align="center"></div>
    </TD>
    <TD colspan=4 align="center"><b><font size=2 face="serif">Municipal Income
          Trust II</font></b></TD>
    <TD><div align="center"></div>
    </TD>
    <TD align="center" colspan=5><div align="center"><B><FONT size=2 face="serif">Municipal
            Bond Trust</FONT></B></div>
    </TD>
  </TR>
  <TR>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><div align="center"></div>
    </TD>
    <TD colspan=4 align="right"><div align="center"><b><font size=2 face="serif">(BFY)</font></b></div>
    </TD>
    <TD><div align="center"></div>
    </TD>
    <TD align="center" colspan=5><div align="center"><B><FONT size=2 face="serif">(BHV)</FONT></B></div>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=4><hr align="center" size=2 noshade>
    </TD>
    <TD><div align="center"></div>
    </TD>
    <TD colspan=5><HR align="center" size=2 noshade>
    </TD>
  </TR>
  <TR>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><div align="center"></div>
    </TD>
    <TD align="right"><div align="center"><b><font size=2 face="serif">2004</font></b></div>
    </TD>
    <TD><div align="center"></div>
    </TD>
    <TD align="center" colspan=2><div align="center"><B><FONT size=2 face="serif">2003</FONT></B></div>
    </TD>
    <TD><div align="center"></div>
    </TD>
    <TD align="center" colspan=2><div align="center"><B><FONT size=2 face="serif">2004</FONT></B></div>
    </TD>
    <TD>&nbsp;</TD>
    <TD align="center" colspan=2><B><FONT size=2 face="serif">2003</FONT></B></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><hr align="center" size=2 noshade>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR align="center" size=2 noshade>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR align="center" size=2 noshade>
    </TD>
    <TD>&nbsp;</TD>
    <TD colspan=2><HR align="center" size=2 noshade>
    </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Increase (Decrease) in Net Assets Applicable
          to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Operations</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div>
    </TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">2,567,595</FONT></div>
    </TD>
    <TD><div align="right"></div>
    </TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div>
    </TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">4,857,157</FONT></div>
    </TD>
    <TD><div align="right"></div>
    </TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div>
    </TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">839,971</FONT></div>
    </TD>
    <TD><div align="right"></div>
    </TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div>
    </TD>
    <TD align="right"><FONT size=2 face="serif">1,655,091</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gain (loss)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(336,586)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(722,685)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(180,533)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">237,709</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net change
        in unrealized appreciation/</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">depreciation</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">7,912,223</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(3,853,513)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">2,391,110</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(910,742)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends
        and distributions to preferred</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">shareholders
        from:</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        investment income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(198,389)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(476,593)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(52,856)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(121,007)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net
        realized gains</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">&nbsp; </FONT></TD>
    <TD align="right"><font size=2 face="serif">&#151;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (22,888)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Net increase (decrease) in net assets resulting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">from operations</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 9,944,843</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (195,634)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 2,997,692</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 838,163</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Dividends and Distributions to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders from:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net investment
        income</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,331,912)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(4,661,882)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(659,923)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(1,289,511)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net realized
        gains</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">&nbsp; </FONT></TD>
    <TD align="right"><font size=2 face="serif">&#151;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> &#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (151,377)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Total dividends and distributions</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> (2,331,912)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (4,661,882)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (659,923)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (1,440,888)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Capital Share Transactions:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from issuance of common shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Net proceeds
        from the underwriters&#146;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">over-allotment
        option exercised</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(2,250)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">1,072,125</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Underwriting
        discounts and additional offering</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">costs
        relating to the issuance of preferred</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(567,282)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">&#151;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><FONT size=2 face="serif">(58,033)</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Reinvestment
        of common dividends</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">&nbsp; </FONT></TD>
    <TD align="right"><font size=2 face="serif">&#151;</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 29,662</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 43,558</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 60,042</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Net proceeds from capital share transactions</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> (2,250)</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 534,505</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 43,558</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 2,009</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Total increase (decrease)</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 7,610,681</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (4,323,011)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 2,381,327</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> (600,716)</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><B><FONT size=2 face="serif">Net Assets Applicable to</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Common
          Shareholders:</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Beginning of period</FONT></TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><font size=2 face="serif"> 65,952,706</font></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 70,275,717</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 21,943,865</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" colspan=2><FONT size=2 face="serif"> 22,544,581</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=2>
    </TD>
    <TD><hr noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
    <TD><HR noshade size=2></TD>
    <TD colspan=2><HR noshade size=2>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div>
    </TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif"> 73,563,387</FONT></div>
    </TD>
    <TD><div align="right"></div>
    </TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div>
    </TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">65,952,706</FONT></div>
    </TD>
    <TD><div align="right"></div>
    </TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div>
    </TD>
    <TD align="right"><div align="right"><FONT size=2 face="serif">24,325,192</FONT></div>
    </TD>
    <TD><div align="right"></div>
    </TD>
    <TD align="center"><div align="right"><FONT size=2 face="serif"> $</FONT></div>
    </TD>
    <TD align="right"><FONT size=2 face="serif">21,943,865</FONT></TD>
  </TR>
  <TR>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4></TD>
    <TD><HR noshade size=4>
    </TD>
    <TD><HR noshade size=4>
    </TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">End of period undistributed (distributions
        in excess)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">of net
        investment income</FONT></TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div>
    </TD>
    <TD align="right"><FONT size=2 face="serif">(125,577)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div>
    </TD>
    <TD align="right"><FONT size=2 face="serif">(162,871)</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div>
    </TD>
    <TD align="right"><FONT size=2 face="serif">434,714</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><div align="right"><FONT size=2 face="serif">$</FONT></div>
    </TD>
    <TD align="right"><FONT size=2 face="serif">307,522</FONT></TD>
  </TR>
</TABLE>
<p>
<p><p align='center'>51
<HR noshade size=4><PAGE>
<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock Insured Municipal Income Trust (BYM)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellpadding="0" cellspacing="0"><tr valign=top><td width="63%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="7%">&nbsp;</td>
<td width="14%" align=center><font size="2"><b>For the period</b></font></td>

</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>October 31, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
</tr>
<tr valign=top><td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.64</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.53</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.83</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.65</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.62)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.07)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
increase from investment operations</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2.14</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.14</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Dividends
to common shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.47)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.70)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.10)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Total
capital charges</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.13)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
asset value, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  15.31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.64</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Market
price, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.70</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.51</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12.43%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(5.39)%</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='7' align=left bgcolor="#DDDDDD"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4, 5</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.83%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.77%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.15%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.10%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income after fees
waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and before preferred
share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.28%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.95%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred share
dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.54%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.55%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income available
to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.74%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.40%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>

<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD">&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2">Average
net assets of common shareholders (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$382,289</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$372,269</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Portfolio turnover</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">24%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">46%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net assets of common shareholders,
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;end of period (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">$400,354</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$356,438</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred shares
value outstanding (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$228,975</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$228,975</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 68,715</font></td><td>&nbsp;</td><td><div align="right"><font size="2">$
      63,919&nbsp;</font></div></td>
</tr></table>

<table width="100%" border="0" cellpadding="0" cellspacing="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial
      Highlights represents the unaudited operating performance for a common
      share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p align="center">
<p align="center"><font size="2"><font size="2">See Notes to Financial Statements.</font></font>
<p>
<p><p align='center'>52
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock Municipal Bond Trust (BBK)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>For the period</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>April 30, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Year Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2002</b></font></td>
</tr>
<tr valign=top><td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.12</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.76</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.62</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.28</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.31</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.50</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.74)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.52</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.10)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
increase from investment operations</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2.08</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.43</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.80</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Dividends
and distributions to common shareholders: <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.52)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1.02)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.25)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.05)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
dividends and distributions</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.52)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1.07)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.25)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2">Capital
changes with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.01</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.09)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
capital changes</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.01</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.12)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  15.69</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.12</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.76</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2">Market
price, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  15.01</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.66</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.90</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">13.79%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(1.20)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.07%</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4</b></sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.89%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.91%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.90%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.37%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.41%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.32%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income after fees waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and
before preferred share dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">8.27%<sup>5</sup></font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">8.66%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">6.35%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.53%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.67%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.53%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income available to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
common shareholders</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.74%<sup>5</sup></font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.99%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">5.82%<sup>5</sup></font></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$152,707</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$148,670</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$144,196</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Portfolio turnover</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">23%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">21%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">22%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net assets
of common shareholders, <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
end of period (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$158,797</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$142,951</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$149,253</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred shares value outstanding
(000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 90,500</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 90,500</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 90,500</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 68,869</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size=2>$ 64,491</font></td><td>&nbsp;</td><td bgcolor="#DDDDDD"><div align="right"><font size=2>$
      66,233</font></div></td>
</tr></table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p><p>
<p><p align='center'>53
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock Municipal Income Trust II (BLE)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>For the period</b></font></td>

</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>July 30, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Year Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2002</b></font></td>
</tr>
<tr valign=top><td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.28</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.40</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.59</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.14</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.03</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.65</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1.06)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.07</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">(0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">(0.10)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
increase (decrease) from investment operations</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2.20</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.02)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.10</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Dividends
to common shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.50)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(1.00)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.10)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Total
capital charges</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.10)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
</tr>
<tr valign=top>
<td COLSPAN='9' bgcolor="#DDDDDD" ><hr noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
asset value, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.98</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.28</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.40</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Market
price, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.53</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.11</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  15.00</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14.84%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(6.00)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.00%</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.94%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.92%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.65%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.19%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.17%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.80%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income after fees
waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and before preferred
share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.33%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">8.15%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">2.82%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred share
dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.58%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.69%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income available
to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.75%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.46%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">2.82%<sup>6</sup></font></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Average
net assets of common shareholders (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$326,439</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$318,014</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$307,165</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Portfolio turnover</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">25%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">118%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net assets of common shareholders,
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;end of period (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$341,173</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$302,337</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$323,483</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred shares
value outstanding (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$205,550</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$205,550</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ &nbsp;   &#151;</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 66,498</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 61,774</font></td>
<td>&nbsp;</td><td><div align="right"><font size="2">$ &nbsp; &#151;</font></div></td></tr></table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>6</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">These annualized ratios are not indicative
of future expense ratios, due to the short operating history of the Trust.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p><p>
<p><p align='center'>54
<HR noshade size=4><PAGE>

<p><p><font size="3"><b>FINANCIAL HIGHLIGHTS
</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock California Insured Municipal Income Trust (BCK)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="64%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="3%">&nbsp;</td>
<td width="17%" align=center><font size="2"><b>For the period</b></font></td>

</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>October 31, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
</tr>
<tr valign=top><td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.09</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="1"></font><font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.51</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.79</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.72</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1.15)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.06)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
increase (decrease) from investment operations</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2.19</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.42)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Dividends
to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.45)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.67)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Total
dividends and distributions</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.46)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.67)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.12)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Total
capital charges</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.15)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
asset value, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.82</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.09</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Market
price, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.34</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.01</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13.91%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(8.98)%</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='7' align=left bgcolor="#DDDDDD"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4, 5</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.96%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.92%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.29%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.27%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income after fees
waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and before preferred
share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7.24%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6.69%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred share
dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.50%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.50%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income available
to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6.74%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6.19%</font></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left bgcolor="#DDDDDD"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Average
net assets of common shareholders (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 74,366</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 74,302</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Portfolio turnover</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">41%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net assets of common shareholders,
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;end of period (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 78,053</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 68,910</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred shares
value outstanding (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 46,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 46,500</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 66,968</font></td>
<td>&nbsp;</td><td><div align="right"><font size="2">$ 62,052</font></div></td></tr></table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial
      Highlights represents the unaudited operating performance for a common
      share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p>
<p align="center"><font size="2"><font size="2">See Notes to Financial Statements.</font></font>
<p><p align='center'>55
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock California Municipal Bond Trust (BZA)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="52%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="13%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="2%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>For the period</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>April 30, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Year Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2002</b></font></td>
</tr>
<tr valign=top><td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.71</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.87</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.58</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.18</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.28</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1.21)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.63</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.09)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.02)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
increase (decrease) from investment operations</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2.06</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.13)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.89</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.48)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.94)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.23)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.07)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.08)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
dividends and distributions</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.55)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1.02)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.23)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.01)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.09)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
capital charges</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.12)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  15.22</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.71</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.87</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2">Market
price, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.23</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.15</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.58</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">12.49%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(2.92)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(1.23)%</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4</b></sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.06%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.06%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.12%<sup>4</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.55%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.54%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.53%<sup>4</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income after fees waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and
before preferred share dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7.92%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7.99%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5.75%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.43%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.58%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.49%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income available to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
common shareholders</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.49%<sup>5</sup></font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.41%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">5.26%<sup>5</sup></font></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 49,096</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 49,107</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 47,390</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Portfolio turnover</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">22%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">18%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net assets
of common shareholders, <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
end of period (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 51,017</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$  45,940</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 49,834</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred shares value outstanding
(000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 29,975</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 29,975</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 29,975</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 67,554</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 63,318</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD"><div align="right"><font size="2">$ 66,569</font></div></td>
</tr></table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p><p>
<p><p align='center'>56
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock California Municipal Income Trust II (BCL)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="56%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="13%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="2%">&nbsp;</td>
<td width="13%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="15%" align=center><font size="2"><b>For the period</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>July 30, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Year Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2002</b></font></td>
</tr>
<tr valign=top><td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
  <td bgcolor="#DDDDDD" >&nbsp;</td>
  <td bgcolor="#DDDDDD" ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  12.76</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.42</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.55</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.02</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.02</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.63</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(1.51)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.10</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.09)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
increase (decrease) from investment operations</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2.14</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.58)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.12</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Dividends
to common shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.49)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.97)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.11)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Total
capital charges</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.11)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
asset value, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.41</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  12.76</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.42</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Market
price, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.96</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.01</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  15.01</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">11.16%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(6.94)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.07%</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
COMMON SHAREHOLDERS:</b><sup><b>4</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.02%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.97%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.05%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.27%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.23%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.20%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income after fees
waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and before preferred
share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.94%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.38%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.35%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred share
dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.59%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.63%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income available
to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.35%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.75%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.35%<sup>6</sup></font></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Average
net assets of common shareholders (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$109,759</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$110,286</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$105,895</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Portfolio turnover</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">13%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">85%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net assets of common shareholders,
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;end of period (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$115,026</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$101,738</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$112,576</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred shares
value outstanding (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 71,950</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 71,950</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$    &nbsp;&#151;</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 64,970</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 60,353</font></td>
<td>&nbsp;</td><td><div align="right"><font size="2">$ &nbsp;&#151;</font></div></td></tr></table>

<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>6</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">These annualized ratios are not indicative
of future expense ratios, due to the short operating history of the Trust.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p><p>
<p><p align='center'>57
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock Florida Insured Municipal Income Trust (BAF)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="56%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="1%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="18%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="2%">&nbsp;</td>
<td width="18%" align=center><font size="2"><b>For the period</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>October 31, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
</tr>
<tr valign=top>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  </tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.74</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.51</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.75</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.47)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.03)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.06)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
increase from investment operations</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.82</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.22</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.45)</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.67)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.08)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
dividends and distributions</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.53)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.67)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left bgcolor="#DDDDDD"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.11)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
capital charges</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.14)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  15.03</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.74</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2">Market
price, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.95</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.20</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">17.45%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(7.78)%</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='7' align=left><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4, 5</b></sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.88%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.83%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.24%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.17%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income after fees waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and
before preferred share dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.15%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">6.39%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.48%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.54%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income available to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
common shareholders</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">6.67%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">5.85%</font></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2"><b>SUPPLEMENTAL DATA:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$126,093</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$124,543</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Portfolio turnover</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">50%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net assets
of common shareholders, <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
end of period (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$131,073</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$119,778</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred shares value outstanding
(000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 76,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 76,000</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 68,120</font>
</td><td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD"><div align="right"><font size="2">$ 64,404</font> </div></td></tr></table>
<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td colspan="3" align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p>
<p><p align='center'>58
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock Florida Municipal Bond Trust (BIE)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="52%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="14%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>For the period</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>April 30, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Year Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2002</b></font></td>
</tr>
<tr valign=top>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.52</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.90</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.58</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.14</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.26</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.20</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.43)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.68</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.09)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.02)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top>
<td COLSPAN='9' ><hr noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
increase from investment operations</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.74</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.61</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.92</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.47)</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.92)</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.23)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.02)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.06)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
dividends and distributions</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.49)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.98)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.23)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.01)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.09)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
capital charges</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.12)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  15.77</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.52</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.90</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2">Market
price, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  15.04</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.55</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.92</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">14.76%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(2.90)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.03%</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4</b></sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.03%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.05%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.12%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.51%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.53%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.54%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income after fees waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and
before preferred share dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7.63%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7.54%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5.36%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.53%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.59%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.49%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income available to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
common shareholders</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.10%<sup>5</sup></font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">6.95%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">4.87%<sup>5</sup></font></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 50,315</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 49,915</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 46,792</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Portfolio turnover</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">19%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net assets
of common shareholders, <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
end of period (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 52,193</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 48,042</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 49,284</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred shares value outstanding
(000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 29,775</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 29,775</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 29,775</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 68,825</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD"><div align="right"><font size="2">$
      65,340</font></div></td>
<td align=right bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD"><div align="right"><font size="2">$ 66,383 </font></div></td>
</tr></table>
<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"><sup></sup></font><sup><font size="2">1</font></sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p><p>
<p><p align='center'>59
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock Maryland Municipal Bond Trust (BZM)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="52%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="15%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="2%">&nbsp;</td>
<td width="14%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>For the period</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>April 30, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Year Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2002</b></font></td>
</tr>
<tr valign=top><td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.36</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.76</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.54</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.07</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.25</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.18</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.45)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.53</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.10)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.03)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
increase from investment operations</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.68</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.51</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.75</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.43)</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.84)</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.21)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
dividends and distributions</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.43)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.88)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.21)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.02)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.09)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
capital charges</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.03)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.11)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  15.61</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.36</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.76</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2">Market
price, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  15.69</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.90</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   14.95</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">16.18%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(1.32)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.10%</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4</b></sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.16%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.15%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.12%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.64%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.63%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.54%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income after fees waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and
before preferred share dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.18%<sup>5</sup></font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.18%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">5.30%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.53%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.64%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.54%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income available to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
common shareholders</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">6.65%<sup>5</sup></font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">6.54%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">4.76%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>SUPPLEMENTAL DATA:</b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 30,315</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 30,069</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 28,153</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Portfolio turnover</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net assets
of common shareholders, <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
end of period (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 31,448</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 28,923</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 29,705</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred shares value outstanding
(000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 18,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 18,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 18,000</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 68,680</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD"><div align="right"><font size=2>$
      65,172</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size=2>$ 66,259</font>
</td></tr></table>
<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p>
<p><p align='center'>60
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock New Jersey Municipal Bond Trust (BLJ)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top bordercolor="#FFFFCC"><td width="52%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="14%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>For the period</b></font></td>
  </tr>
<tr valign=top bordercolor="#FFFFCC">
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>April 30, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top bordercolor="#FFFFCC"><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Year Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top bordercolor="#FFFFCC">
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2002</b></font></td>
</tr>
<tr valign=top bordercolor="#FFFFCC">
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.77</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.58</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.57</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.15</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.25</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.54</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.85)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.37</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.03)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.09)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.02)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
increase from investment operations</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2.08</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.20</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.60</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><br>
  (0.47)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><br>
  (0.93)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><br>
  (0.23)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.05)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.06)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
dividends and distributions</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.52)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.99)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.23)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.02)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.09)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
capital charges</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.02)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.12)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  15.33</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.77</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.58</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2">Market
price, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.93</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.64</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.65</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">13.44%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.10)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.75)%</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4</b></sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.13%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.14%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.15%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.62%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.62%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.57%<sup>5</sup></font></td>
</tr>
<tr valign=top bgcolor="#DDDDDD"><td align=left><font size="2">Net investment
income after fees waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and
before preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.91%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.94%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.29%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.47%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.60%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">0.45%<sup>5</sup></font></td>
</tr>
<tr valign=top bgcolor="#DDDDDD"><td align=left><font size="2">Net investment
income available to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
common shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.44%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.34%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">4.84%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>SUPPLEMENTAL DATA:</b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 33,320</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 32,652</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 31,611</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Portfolio turnover</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">20%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">17%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net assets
of common shareholders, <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
end of period (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 34,780</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 31,226</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 32,981</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred shares value outstanding
(000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 20,225</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 20,225</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 20,225</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 67,995</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD"><div align="right"><font size=2>$
      63,602</font> </div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size=2>$ 65,771</font>
</td></tr></table>
<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each year indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p>
<p><p align='center'>61
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock New York Insured Municipal Income Trust (BSE)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="63%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="17%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="2%">&nbsp;</td>
<td width="18%" align=center><font size="2"><b>For the period</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>October 31, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
</tr>
<tr valign=top>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.45</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='7' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.51</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.75</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.61</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.75)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.07)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
increase (decrease) from investment operations</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2.08</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.07)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Dividends
to common shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.45)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.67)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Capital
charges with respect to issuance of:</font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.11)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Total
capital charges</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.14)</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
asset value, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  15.08</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.45</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Market
price, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.66</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.28</font></td>
</tr>
<tr valign=top><td COLSPAN='7' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13.90%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(7.13)%</font></td>
</tr>
<tr valign=top><td COLSPAN='7' ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='7' align=left bgcolor="#DDDDDD"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
COMMON SHAREHOLDERS:</b><sup><b>4, 5</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.91%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.87%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.27%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.22%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income after fees
waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and before preferred
share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.12%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.35%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred share
dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.49%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.55%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income available
to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.63%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">5.80%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>

<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
</tr>
<tr valign=top><td align=left><font size="2">Average
net assets of common shareholders (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 92,548</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 90,967</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Portfolio turnover</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">80%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net assets of common shareholders,
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;end of period (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 97,042</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 86,431</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred shares
value outstanding (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 56,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 56,000</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td><td><div align="right"><font size=2>$ 68,323</font></div></td>
<td>&nbsp;</td>
<td align=right><font size=2>$ 63,587</font></td></tr></table>
<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><p><font size="2">The information in the above Financial
        Highlights represents the unaudited operating performance for a common
        share outstanding,
        total investment returns, ratios to average net assets and other supplemental
        data for each period indicated. This information has been determined
        based upon financial information provided in the financial statements
        and market
price data for the Trust&#146;s common shares.</font></p>
  </td>
  <td>&nbsp;</td>
</tr>
</table>
<p align="center">
<font size="2">See Notes to Financial
Statements.</font>
<p><p align='center'>62
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock New York Municipal Bond Trust (BQH)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="52%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="13%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="2%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>For the period</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>April 30, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Year Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2002</b></font></td>
</tr>
<tr valign=top>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.15</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.83</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.56</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.12</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.25</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.31</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.71)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.62</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.03)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.09)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.02)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
increase from investment operations</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.84</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.31</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.85</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.46)</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.92)</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">
  (0.23)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.06)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
dividends and distributions</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.46)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.98)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.23)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.01)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.09)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
capital charges</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.01)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.12)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  15.53</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.15</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.83</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2">Market
price, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.52</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.35</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.50</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">12.37%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(1.26)%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(1.78)%</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4</b></sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.12%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.12%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.12%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.60%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.60%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.54%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income after fees waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
and
before preferred share dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.58%<sup>5</sup></font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.57%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">5.24%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.42%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.62%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.50%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income available to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
common shareholders</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">7.16%<sup>5</sup></font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">6.95%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">4.74%<sup>5</sup></font></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 40,447</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 40,072</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 38,183</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Portfolio turnover</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net assets
of common shareholders, <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
end of period (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 41,956</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 38,207</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 40,062</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred shares value outstanding
(000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 24,200</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 24,200</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 24,200</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 68,344</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD"><div align="right"><font size=2>$
      64,473</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size=2>$ 66,390</font>
</td></tr></table>
<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p><p>
<p><p align='center'>63
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock New York Municipal Income Trust II (BFY)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="56%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="14%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="13%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="15%" align=center><font size="2"><b>For the period</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>July 30, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Year Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2002</b></font></td>
</tr>
<tr valign=top>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.36</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.47</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.52</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.98</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.02</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.54</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.94)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.15</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
to preferred shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.10)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
increase (decrease) from investment operations</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2.02</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.06)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.17</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Dividends
to common shareholders from net investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.47)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.94)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.11)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Total
capital charges</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.11)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.03)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Net
asset value, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.91</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  13.36</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.47</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Market
price, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.47</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  13.12</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  15.10</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14.07%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(6.93)%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.67%</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>
COMMON SHAREHOLDERS:</b><sup><b>4</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.03%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.00%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.43%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses before
fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.28%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.27%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.58%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income after fees
waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and before preferred
share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">7.33%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.95%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.77%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred share
dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.57%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.68%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net investment income available
to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common shareholders</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.76%<sup>5</sup></font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">6.27%</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">1.77%<sup>6</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>SUPPLEMENTAL
DATA:</b></font></td>

<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td bgcolor="#DDDDDD">&nbsp;</td>
</tr>
<tr valign=top><td align=left><font size="2">Average
net assets of common shareholders (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 70,483</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 69,863</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 64,673</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Portfolio turnover</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">40%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Net assets of common shareholders,
<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;end of period (000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 73,563</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 65,953</font></td>
<td valign="bottom">&nbsp;</td>
<td align=right valign="bottom"><font size="2">$ 70,276</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Preferred shares
value outstanding (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 44,650</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 44,650</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$     &#151;</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Asset coverage per preferred
share, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 66,191</font></td>
<td>&nbsp;</td><td><div align="right"><font size=2>$ 61,930</font></div></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ &#151;</font></td>
</tr></table>
<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>6</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">These annualized ratios are not indicative
of future expense ratios, due to the short operating history of the Trust.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
  <td align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p><p>
<p><p align='center'>64
<HR noshade size=4><PAGE>

<p><font size="3"><b>FINANCIAL HIGHLIGHTS</b></font><hr noshade size=3>
<p><font size="3"><strong>BlackRock Virginia Municipal Bond Trust (BHV)</strong></font><strong>
</strong>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="52%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="0%" align=right><font size="2">&nbsp;</font></td>
<td width="0%">&nbsp;</td>
<td width="15%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="2%">&nbsp;</td>
<td width="13%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="2%">&nbsp;</td>
<td width="16%" align=center><font size="2"><b>For the period</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Six Months Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>April 30, 2002</b><sup><b>1</b></sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, 2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Year Ended</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>through</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>(unaudited)</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2003</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>August 31, 2002</b></font></td>
</tr>
<tr valign=top>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>PER
COMMON SHARE OPERATING <br>PERFORMANCE:</b></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, beginning of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.46</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.90</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.33<font size="2"><sup>2</sup></font></font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left><font size="2">Investment
operations:</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.54</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.09</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.27</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized and unrealized gain (loss)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.46</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.44)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.65</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions to preferred shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net
investment income</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.03)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.08)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">
  (0.03)</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.02)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
increase from investment operations</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.97</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.55</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.89</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Dividends
and distributions to common shareholders:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
investment income</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><br>
  (0.43)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><br>
  (0.85)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"><br>
  (0.21)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
realized gains</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.10)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
dividends and distributions</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.43)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.95)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.21)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td COLSPAN='9' align=left bgcolor="#DDDDDD"><font size="2">Capital
charges with respect to issuance of:</font></td>
</tr>
<tr valign=top><td align=left><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common
shares</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.02)</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
shares</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.04)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(0.09)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left><font size="2">Total
capital charges</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.04)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">(0.11)</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=1></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net
asset value, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  16.00</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.46</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$  14.90</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left><font size="2">Market
price, end of period</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  16.40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  14.40</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$  15.20</font></td>
</tr>
<tr valign=top><td COLSPAN='9' ><HR noshade size=3></td>
</tr>


<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2"><b>TOTAL
INVESTMENT RETURN</b><sup><b>3</b></sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">17.15%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">0.94%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2.81%</font></td>
</tr>
<tr valign=top><td COLSPAN='9' bgcolor="#DDDDDD" ><HR noshade size=3></td>
</tr>


<tr valign=top><td COLSPAN='9' align=left><font size="2"><b>RATIOS
TO AVERAGE NET ASSETS OF <br>COMMON SHAREHOLDERS:</b><sup><b>4</b></sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Expenses
after fees waived and paid indirectly</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.17%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.17%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1.12%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Expenses before fees waived and
paid indirectly</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.65%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.64%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.54%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income after fees waived and paid indirectly<br>&nbsp;&nbsp;&nbsp;
and before preferred
share dividends</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7.28%<sup>5</sup></font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">7.23%</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5.70%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred share dividends</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.46%<sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.53%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.54%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net investment
income available to <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
common shareholders</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">6.82%<sup>5</sup></font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">6.70%</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">5.16%<sup>5</sup></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>SUPPLEMENTAL DATA:</b></font></td>

<td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Average
net assets of common shareholders (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 23,215</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 22,896</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 21,321</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Portfolio turnover</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">14%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">18%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8%</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Net assets
of common shareholders, <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
end of period (000)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 24,325</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 21,944</font></td>
<td valign="bottom" bgcolor="#DDDDDD">&nbsp;</td>
<td align=right valign="bottom" bgcolor="#DDDDDD"><font size="2">$ 22,545</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Preferred shares value outstanding
(000)</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 13,525</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 13,525</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$ 13,525</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Asset coverage
per preferred share, end of period</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$ 69,964</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size=2>$ 65,562</font></td>
<td align=right bgcolor="#DDDDDD"><td align=right bgcolor="#DDDDDD"><font size=2>$
  66,674</font> </tr></table>
<table border="0" cellspacing="0" cellpadding="0"><tr valign=top><td COLSPAN='4' ><HR align="left" width="150" size=1 noshade></td></tr>
<tr valign=top><td align=left><font size="2"><font size="2"></font><font size="2"><sup>1</sup></font></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Commencement of investment operations.
This information includes the initial investment by BlackRock Funding, Inc.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>2</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Net asset value, beginning of period,
reflects a deduction of $0.675 per share sales charge from the initial offering
price of $15.00 per share.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>3</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Total investment return is calculated
assuming a purchase of a common share at the current market price on the first day
and a sale at the current market price on the last day of each year reported. Dividends
and distributions, if any, are assumed for purposes of this calculation to be reinvested
at prices obtained under the trusts dividend reinvestment plan. Total investment
returns do not reflect brokerage commissions. Total investment returns for less
than a full year are not annualized. Past performance is not a guarantee of future
results.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>4</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Ratios are calculated on the basis
of income and expenses applicable to both the common and preferred shares relative
to the average net assets of common shareholders.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top><td align=left><font size="2"><sup>5</sup></font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Annualized.</font></td>

<td>&nbsp;</td></tr>
<tr valign=top>
  <td colspan="3" align=left>&nbsp;</td>
  <td>&nbsp;</td>
</tr>
<tr valign=top>
  <td colspan="3" align=left><font size="2">The information in the above Financial Highlights
      represents the unaudited operating performance for a common share outstanding,
      total investment returns, ratios to average net assets and other supplemental
      data for each period indicated. This information has been determined based
      upon financial information provided in the financial statements and market
    price data for the Trust&#146;s common shares.</font></td>
  <td>&nbsp;</td>
</tr>
</table>
<p><p>
<p><p align='center'>65
<HR noshade size=4><PAGE>

<p><font size="4"><b>NOTES TO
FINANCIAL STATEMENTS </b><b>(unaudited)</b>
</font>
<hr noshade>
<font size="3"><b>Note 1. Organization
<br>
&amp;Accounting Policies</b></font>
<p><font size="2">BlackRock Insured Municipal
Income Trust (&#147;Insured Municipal&#148;), BlackRock California Insured Municipal
Income Trust (&#147;California Insured&#148;), BlackRock Florida Insured Municipal
Income Trust (&#147;Florida Insured&#148;), BlackRock New York Insured Municipal
Income Trust (&#147;New York Insured&#148;) (collectively the &#147;Insured Trusts&#148;),
BlackRock Municipal Bond Trust (&#147;Municipal Bond&#148;), BlackRock California
Municipal Bond Trust (&#147;California Bond&#148;), BlackRock Florida Municipal
Bond Trust (&#147;Florida Bond&#148;), BlackRock Maryland Municipal Bond Trust (&#147;Maryland
Bond&#148;), BlackRock New&nbsp;Jersey Municipal Bond Trust (&#147;New Jersey Bond&#148;),
BlackRock New York Municipal Bond Trust (&#147;New York Bond&#148;), BlackRock Virginia
Municipal Bond Trust (&#147;Virginia Bond&#148;)&nbsp;(collectively the &#147;Bond
Trusts&#148;), BlackRock Municipal Income Trust II&nbsp;(&#147;Municipal Income
II&#148;), BlackRock California Municipal Income Trust II&nbsp;(&#147;California
Income II&#148;) and BlackRock New York Municipal Income Trust II&nbsp;(&#147;New
York Income II&#148;) (collectively the &#147;Income II&nbsp;Trusts&#148;)&nbsp;(collectively
the &#147;Trusts&#148;) are organized as Delaware statutory trusts. The Insured
Trusts were organized on August 19, 2002. They had no transactions until October
19, 2002, when each of the Insured Trusts sold 8,028 common shares for $115,001
to BlackRock Funding, Inc. Investment operations for the Insured Trusts commenced
on October 31, 2002. Insured Municipal, Municipal Bond and Municipal Income II are
registered as diversified closed-end management investment companies under the Investment
Company Act of 1940, as amended. California Insured, California Bond, California
Income II, Florida Insured, Florida Bond, Maryland Bond, New Jersey Bond, New York
Insured, New York Bond, New York Income II and Virginia Bond are registered as non-diversified
closed-end management investment companies under the Investment Company Act of 1940,
as amended.
</font><p align='justify'><font size="2">The following is a summary of significant
accounting policies followed by the Trusts.
</font><p align='justify'><font size="2"><b>Securities Valuation:</b> Municipal
securities (including commitments to purchase such securities on a &#147;when-issued&#148;
basis) are valued on the basis of prices provided by dealers or pricing services
selected under the supervision of each Trust&#146;s Board of Trustees or Board of
Directors as the case may be (each, a &#147;Board&#148;). In determining the value
of a particular security, pricing services may use certain information with respect
to transactions in such securities, quotations from bond dealers, market transactions
in comparable securities and various relationships between securities. A futures
contract is valued at the last sale price as of the close of the commodities exchange
on which it trades. Short-term investments may be valued at amortized cost. Investments
in other investment companies are valued at net asset value. Any securities or other
assets for which such current market quotations are not readily available are valued
at fair value as determined in good faith under procedures established by, and under
the general supervision and responsibility of, each Trust&#146;s Board.
</font><p align='justify'><font size="2"><b>Securities Transactions and Investment
Income:</b> Securities transactions are recorded on trade date. Realized and unrealized
gains and losses are calculated on the identified cost basis.  Each Trust also records
interest income on an accrual basis and amortizes premium and/or accretes discount
on securities purchased using the interest method.
</font><p align='justify'><font size="2"><b>Financial Futures Contracts:</b> A futures
contract is an agreement between two parties to buy and sell a financial instrument
for a set price on a future date. Initial margin deposits are made upon entering
into futures contracts and can be either cash or securities. During the period the
futures contract is open, changes in the value of the contract are recognized as
unrealized gains or losses by &#147;marking-to-market&#148; on a daily basis to
reflect the market value of the contract at the end of each day&#146;s trading.
Variation margin payments are made or received, depending upon whether unrealized
gains or losses are incurred. When the contract is closed, the Trust records a realized
gain or loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the Trust&#146;s basis in the contract.
</font><p align='justify'><font size="2">Financial futures contracts, when used
by the Trusts, help in maintaining a targeted duration. Futures contracts can be
sold to effectively shorten an otherwise longer duration portfolio. In the same
sense, futures contracts can be purchased to lengthen a portfolio that is shorter
than its duration target. Thus, by buying or selling futures contracts, the Trusts
may attempt to manage the duration of positions so that changes in interest rates
do not change the duration of the portfolio unexpectedly.
</font><p align='justify'><font size="2"><b>Segregation:</b> In cases in which the
Investment Company Act of 1940, as amended, and the interpretive positions of the
Securities and Exchange Commission (&#147;SEC&#148;) require that each Trust segregate
assets in connection with certain investments (e.g., when-issued securities, reverse
repurchase agreements or futures contracts), each Trust will, consistent with certain
interpretive letters issued by the SEC, designate on its books and records cash
or other liquid debt securities having a market value at least equal to the amount
that would otherwise be required to be physically segregated.
</font><p align='justify'><font size="2"><b>Federal Income Taxes:</b> It is each
Trust&#146;s intention to continue to be treated as a regulated investment company
under the Internal Revenue Code and to distribute sufficient net income to shareholders.
For this reason and because substantially all of the gross income of each Trust
consists of tax-exempt interest, no Federal income tax provisions are required.
</font><p align='justify'><font size="2"><b>Dividends and Distributions:</b> Each
Trust declares and pays dividends and distributions to common shareholders monthly
from net investment income, net realized short-term capital gains and other sources,
if necessary. Net long-term capital gains, if any, in excess of loss carryforwards
may be distributed annually. Dividends and distributions are recorded on the ex-dividend
date. Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.
</font><p align='justify'><font size="2"><b>Estimates:</b> The preparation of financial
statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could differ
from these estimates.
</font><p align='justify'><font size="2"><b>Deferred Compensation and BlackRock
Closed-End Share Equivalent Investment Plan:</b> Under the deferred compensation
plan approved by the Trust&#146;s Board, non-interested Trustees/Directors (&#147;Trustees&#148;)
are required to defer a portion of their annual complex-wide compensation. Deferred
amounts earn an approximate return as though equivalent dollar amounts had been
invested in common shares of other BlackRock closed-end trusts selected by the Trustees.
This has the same economic effect for the Trustees as if the Trustees had invested
the deferred amounts in such Trusts.</font><p><p><p><p align='center'>66
<HR noshade size=4><PAGE>

<p><font size="2">The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Trust. Each
Trust may, however, elect to invest in common shares of those Trusts selected by
the Trustees in order to match its deferred compensation obligations.
</font><p align='justify'><p><font size="3"><b>Note 2. Agreements</b></font><p><font size="2">Each
Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the
&#147;Advisor&#148;), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial
Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor
to each Trust. BlackRock, Inc. is an indirect majority owned subsidiary of The PNC
Financial Services Group, Inc. The investment management agreement covers both investment
advisory and administration services.
</font><p align='justify'><font size="2">Each Trust&#146;s investment advisory fee
paid to the Advisor is computed weekly, accrued daily and payable monthly based
on an annual rate, 0.55% for the Insured Trusts and Income II Trusts and 0.65% for
the Bond Trusts, of each Trust&#146;s average weekly managed assets. &#147;Managed
assets&#148; means the total assets of a Trust (including any assets attributable
to any preferred shares that may be outstanding) minus the sum of accrued liabilities
(other than debt representing financial leverage). The Advisor has voluntarily agreed
to waive a portion of the investment advisory fee or other expenses of each Trust.
With respect to the Insured Trusts the waiver, as a percentage of managed assets,
is as follows: 0.20% for the first 5 years of each Trust&#146;s operations, 0.15%
in year 6, 0.10% in year 7, and 0.05% in year 8. With respect to the Bond Trusts
the waiver, as a percentage of managed assets, is as follows: 0.30% for the first
5 years of each Trust&#146;s operations, 0.25% in year 6, 0.20% in year 7, 0.15%
in year 8, 0.10% in year 9 and 0.05% in year 10. With respect to the Income II Trusts
the waiver, as a percentage of managed assets, is as follows: 0.15% for the first
5 years of each Trust&#146;s operations, 0.10% in year 6 through year 7, 0.05% in
year 8 through year 10.
</font><p align='justify'><font size="2">Pursuant to the agreements, the Advisor
provides continuous supervision of the investment portfolio and pays the compensation
of officers of each Trust who are affiliated persons of the Advisor, occupancy and
certain clerical and accounting costs of each Trust. Each Trust bears all other
costs and expenses, which include reimbursements to the Advisor for certain operational
support services provided to each Trust.
</font><p align='justify'><font size="2">Pursuant to the terms of each Trust&#146;s
custody agreement, each Trust received earnings credits from its custodian for positive
cash balances maintained, which are used to offset custody fees.
</font><p align='justify'><p><font size="3"><b>Note 3. Portfolio
Securities</b></font><p><font size="2">Purchases and sales of investment securities,
other than short-term investments, for the period ended February 29, 2004, were
as follows:
</font><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="18%" align=left><font size="2"><b><font size="2">Trust</font></b></font></td>
<td width="5%">&nbsp;</td>
<td width="9%" align=center><div align="center"><font size="2"><b>Purchases</b></font></div></td>
<td width="2%"><div align="center"></div></td>
<td width="10%" align=center><div align="center"><font size="2"><b>Sales</b></font></div></td>
<td width="10%"><div align="center"></div></td>
<td width="20%" align=left><div align="left"><font size="2"><b>Trust</b></font></div></td>
<td width="2%"><div align="center"></div></td>
<td width="10%" align=center><div align="center"><font size="2"><b>Purchases</b></font></div></td>
<td width="5%"><div align="center"></div></td>
<td width="9%" align=center><div align="center"><font size="2"><b>Sales</b></font></div></td>

</tr>
<tr valign=top><td ><HR align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><HR noshade size=2></td>
  <td >&nbsp;</td>
  <td ><HR noshade size=2></td>
  <td >&nbsp;</td>
  <td ><HR align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><HR noshade size=2></td>
  <td >&nbsp;</td>
  <td ><HR noshade size=2></td>
  </tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Insured
Municipal </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$147,204,582 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$140,894,975 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$3,061,883 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$4,535,224 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">Municipal Bond </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">52,666,573 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">66,026,459 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,273,748 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,844,615 </font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Municipal Income
II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">126,686,511 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">131,647,513 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Bond </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,823,537 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,805,865 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Insured </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,000,000 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,181,541</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,500,950 </font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">California
Bond </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,507,184 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,428,814 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Bond </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,237,378</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,894,945</font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">22,919,235 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,729,433 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Income Trust II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2"> 6,040,273 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">7,978,215 </font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Florida Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,955,883 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,901,525 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Virginia Bond </font></td>
<td>&nbsp;</td><td><div align="right"><font size=2>5,123,960</font></div></td>
<td>&nbsp;</td>
<td align=right><font size=2>5,039,241</font></td></tr></table>
<p><p align='justify'><font size="2">Details of open financial futures
contracts at February 29, 2004 were as follows:
</font><p>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="19%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="10%" align=center><font size="2">&nbsp;</font></td>
<td width="4%">&nbsp;</td>
<td width="13%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="1%">&nbsp;</td>
<td width="10%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="2%">&nbsp;</td>
<td width="13%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="0%">&nbsp;</td>
<td width="12%" align=center><font size="2"><b>Value at </b></font></td>
<td width="4%">&nbsp;</td>
<td width="12%" align=center></td>
</tr>
<tr valign=top>
  <td align=left>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Number of &nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center>&nbsp;</td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Expiration </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Value at Trade </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>February 29, </b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Unrealized</b></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Contracts</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Type</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Date</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Date</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>2004</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Depreciation</b></font></td>
</tr>
<tr valign=top>
  <td align=left><HR align="left" width="50" size=2 noshade></td>
<td>&nbsp;</td>
<td align=center><hr noshade></td>
<td>&nbsp;</td>
<td align=center><hr noshade></td>
<td>&nbsp;</td>
<td align=center><hr noshade></td>
<td>&nbsp;</td>
<td align=center><hr noshade></td>
<td>&nbsp;</td>
<td align=center><hr noshade></td>
<td>&nbsp;</td>
<td align=center><hr noshade></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>Short Positions:</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Insured Municipal</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,444</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">June &#146;04</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$164,118,547</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$164,435,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">$316,953</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Municipal Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">532</font></td>
<td>&nbsp;</td>
<td align=left><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td><div align="center"></div></td>
<td align=left><div align="center"><font size="2">June &#146;04</font></div></td>
<td>&nbsp;</td>
<td align=right><font size="2">60,464,720</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">60,581,500</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">116,780</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Municipal Income
II</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,227</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">June &#146;04</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">139,455,297</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">139,724,625</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">269,328</font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">308</font></td>
<td>&nbsp;</td>
<td align=left><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td><div align="center"></div></td>
<td align=left><div align="center"><font size="2">June &#146;04</font></div></td>
<td>&nbsp;</td>
<td align=right><font size="2">35,005,970</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">35,073,500</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">67,530</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">California
Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">189</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">June &#146;04</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">21,480,982</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">21,522,375</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">41,393</font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">510</font></td>
<td>&nbsp;</td>
<td align=left><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td><div align="center"></div></td>
<td align=left><div align="center"><font size="2">June &#146;04</font></div></td>
<td>&nbsp;</td>
<td align=right><font size="2">57,964,284</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">58,076,250</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">111,966</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Florida Insured</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">430</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">June &#146;04</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">48,871,780</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">48,966,250</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">94,470</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Florida Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">148</font></td>
<td>&nbsp;</td>
<td align=left><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td><div align="center"></div></td>
<td align=left><div align="center"><font size="2">June &#146;04</font></div></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,821,150</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,853,500</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">32,350</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Maryland Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">91</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">June &#146;04</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,342,213</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">10,362,625</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">20,412</font></td>
</tr>
<tr valign=top><td align=left><font size="2">New Jersey Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">135</font></td>
<td>&nbsp;</td>
<td align=left><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td><div align="center"></div></td>
<td align=left><div align="center"><font size="2">June &#146;04</font></div></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,343,570</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,373,125</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">29,555</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">New York Insured</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">319</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">June &#146;04</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">36,256,181</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">36,326,125</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">69,944</font></td>
</tr>
<tr valign=top><td align=left><font size="2">New York Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">122</font></td>
<td>&nbsp;</td>
<td align=left><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td><div align="center"></div></td>
<td align=left><div align="center"><font size="2">June &#146;04</font></div></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,866,030</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">13,892,750</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">26,720</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">New York Income
II</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">216</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td bgcolor="#DDDDDD"><div align="center"></div></td>
<td align=left bgcolor="#DDDDDD"><div align="center"><font size="2">June &#146;04</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">24,549,549</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">24,597,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">47,451</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Virginia Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">82</font></td>
<td>&nbsp;</td>
<td align=left><div align="center"><font size="2">10 Yr. U.S. T-Note</font></div></td>
<td><div align="center"></div></td>
<td align=left><div align="center"><font size="2">June &#146;04</font></div></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,319,866</font></td>
<td>&nbsp;</td><td><div align="right"><font size="2">9,337,750</font></div></td>
<td>&nbsp;</td>
<td align=right><font size=2>17,884</font><tr></tr></table>
<p>

<p align='justify'> <p><p><p><p align='center'>67
<HR noshade size=4><PAGE>

<p>
<p><font size="3"><b>Note 4. Distributions to</b> <b>Shareholders</b></font><p><font size="2">The
tax character of distributions paid during the period ended February 29, 2004 and
the year ended August 31, 2003 were as follows:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td >&nbsp;</td>
<td>&nbsp;</td>
<td COLSPAN='7' align=center><font size="2"><b><font size="2">Period
ended February 29, 2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></font></td>
<td align=center>&nbsp;</td>
<td COLSPAN='7' align=center><font size="2"><b><font size="2">Year ended August
    31, 2003</font></b></font></td>
</tr>
<tr valign=top><td >&nbsp;</td>
  <td >&nbsp;</td>
  <td COLSPAN='7' ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td COLSPAN='7' ><hr noshade size=2></td>
  </tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b><font size="2">&nbsp;</font></b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Long-term</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Long-term</b></font></td>
<td>&nbsp;</td>
<td align=center></td>
</tr>
<tr valign=top><td align=left> </td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Tax-exempt</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Ordinary</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Capital</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Total</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Tax-exempt</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Ordinary</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Capital</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Total</b></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Gain</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Distributions</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Income</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Gain</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Distributions</b></font></td>
</tr>
<tr valign=top><td ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td align=left><font size="2">Insured
Municipal</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$13,281,307</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$     &#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$   &#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$13,281,307</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$20,038,910</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$     &#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$&nbsp;&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$20,038,910</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Municipal Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,651,393</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,651,393</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">11,285,917</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">597,573</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">11,883,490</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Municipal Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,389,955</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">12,389,955</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,082,459</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">25,082,459</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">California
Insured</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,556,393</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">73,747</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,630,140</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,860,751</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,860,751</font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,707,290</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">232,979</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">9,007</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,949,276</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,437,724</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">314,651</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,752,375</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">California
Income II</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,210,362</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,210,362</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,464,717</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">8,464,717</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Florida Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,223,492</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">718,777</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,942,269</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,444,887</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,444,887</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Florida Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,676,978</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">80,865</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,757,843</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,332,440</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">211,968</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">3,544,408</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Maryland Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">942,050</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">942,050</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,889,448</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">83,572</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,973,020</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">New Jersey
Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,148,434</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">121,410</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,269,844</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,305,459</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">159,954</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,465,413</font></td>
</tr>
<tr valign=top><td align=left><font size="2">New York Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,121,245</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,121,245</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,747,699</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">4,747,699</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">New York Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,333,373</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,333,373</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,725,833</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">176,602</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">2,902,435</font></td>
</tr>
<tr valign=top><td align=left><font size="2">New York Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,530,301</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,530,301</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,138,475</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">5,138,475</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Virginia Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">712,779</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">712,779</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,410,518</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">174,265</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td><td bgcolor="#DDDDDD"><div align="right"><font size="2">&#151;</font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size=2>1,584,783</font></td></tr></table>
<p><font size="2">As of February 29, 2004, the components of distributable earnings on a tax
  basis were as follows:</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top>
    <td width="32%" >&nbsp;</td>
    <td width="0%">&nbsp;</td>
    <td width="18%" align=center><font size="2"><b><font size="2">Undistributed</font></b></font></td>
    <td width="9%">&nbsp;</td>
    <td width="17%" align=center><font size="2"><b>Undistributed</b></font></td>
    <td width="7%">&nbsp;</td>
    <td width="17%" align=center></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>&nbsp;</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Tax-exempt</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Long-term</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Unrealized Net</b></font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2"><b>Trust</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Income</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Gain (Loss)</b></font></td>
    <td>&nbsp;</td>
    <td align=center><font size="2"><b>Appreciation</b></font></td>
  </tr>
  <tr valign=top>
    <td ><hr align="left" width="50" size=2 noshade>
</td>
    <td >&nbsp;</td>
    <td ><hr noshade size=2></td>
    <td >&nbsp;</td>
    <td ><hr noshade size=2></td>
    <td >&nbsp;</td>
    <td ><hr noshade size=2></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">Insured Municipal</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$2,126,387</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$ &#151; </font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">$36,165,844</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Municipal Bond</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,519,763</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">13,308,313</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">Municipal Income II</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">2,729,020</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">22,963,937</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">California Insured</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">432,505</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,390,461</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">California Bond</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">781,590</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">3,043,857</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">California Income II</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">5,488,860</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">Florida Insured</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">475,782</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">7,479,738</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Florida Bond</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">672,272</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">4,873,699</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">Maryland Bond</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">450,333</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">2,737,028</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">New Jersey Bond</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">444,940</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">25,128</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">2,207,497</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">New York Insured</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">248,780</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">6,122,711</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">New York Bond</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">495,691</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">&#151;</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">3,561,052</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">New York Income II</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">4,771,218</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Virginia Bond</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">408,080</font></td>
    <td>&nbsp;</td><td><div align="right"><font size="2">&#151;</font></div></td>
    <td>&nbsp;</td>
    <td align=right><font size=2>2,532,385</font>
  </td>
  </tr>
</table>
<p>
<p><font size="3"><b>Note 5. Capital</b></font>
<p><font size="2">There
are an unlimited number of $0.001 par value common shares of beneficial interest
authorized for each Trust. Each Trust may classify or reclassify any unissued common
shares into one or more series of Auction Market Preferred Shares (&#147;preferred
shares&#148;). At February 29, 2004, the shares outstanding and the shares owned
by affiliates of the Advisor of each Trust were as follows:
</font>
<p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="21%">&nbsp;</TD>
    <TD width="12%" align="center"><B><FONT size=2 face="serif">Common</FONT></B></TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="14%" align="center">&nbsp;</TD>
    <TD width="0%" align="center">&nbsp;</TD>
    <TD width="21%" align="center">&nbsp;</TD>
    <TD width="12%" align="center"><B><FONT size=2 face="serif">Common</FONT></B></TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="14%" align="center">&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="center"><B><FONT size=2 face="serif">Shares</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><B><FONT size=2 face="serif">Common</FONT></B></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><B><FONT size=2 face="serif">Shares</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><B><FONT size=2 face="serif">Common</FONT></B></TD>
  </TR>
  <TR>
    <TD align="center"><div align="left"><B><FONT size=2 face="serif"> Trust</FONT></B></div></TD>
    <TD align="center"><B><FONT size=2 face="serif"> Outstanding</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><B><FONT size=2 face="serif"> Shares Owned</FONT></B></TD>
    <TD align="center">&nbsp;</TD>
    <TD align="center"><div align="left"><B><FONT size=2 face="serif"> Trust</FONT></B></div></TD>
    <TD align="center"><B><FONT size=2 face="serif"> Outstanding</FONT></B></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><B><FONT size=2 face="serif"> Shares Owned</FONT></B></TD>
  </TR>
  <TR>
    <TD><hr align="left" width="50" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD><hr align="left" width="50" size=2 noshade>
    </TD>
    <TD><HR noshade size=2>
    </TD>
    <TD>&nbsp;</TD>
    <TD><HR noshade size=2>
    </TD>
  </TR>
  <TR bgcolor="#DDDDDD">
    <TD><FONT size=2 face="serif">Insured Municipal</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">26,149,334</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">8,028</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">Florida Municipal</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">3,309,483</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">7,679</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">Municipal Bond</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">10,123,055</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">7,679</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">Maryland Municipal</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">2,014,422</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">7,679</FONT></TD>
  </TR>
  <TR bgcolor="#DDDDDD">
    <TD><FONT size=2 face="serif">Municipal Income II</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">22,781,072</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">8,027</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">New Jersey Municipal</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">2,269,366</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">7,679</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">California Insured</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">5,267,067</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">8,028</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">New York Insured</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">6,436,539</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">8,028</FONT></TD>
  </TR>
  <TR bgcolor="#DDDDDD">
    <TD><FONT size=2 face="serif">California Municipal</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">3,351,150</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">7,679</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">New York Bond</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">2,700,991</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">7,679</FONT></TD>
  </TR>
  <TR>
    <TD><FONT size=2 face="serif">California Municipal II</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">7,981,621</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">8,027</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">New York Income II</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">4,935,268</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">8,027</FONT></TD>
  </TR>
  <TR bgcolor="#DDDDDD">
    <TD><FONT size=2 face="serif">Florida Insured</FONT></TD>
    <TD align="right"><FONT size=2 face="serif">8,718,823</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">8,028</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif">Virginia Bond</FONT></TD>
    <TD align="center"><FONT size=2 face="serif">1,519,916</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="center"><FONT size=2 face="serif">7,679</FONT></TD>
  </TR>
</TABLE>
<p>
<p>


<p><p><p align='center'>68
<HR noshade size=4><PAGE>

<p>
<font size="2">During the period ended February 29, 2004, Insured Municipal, Municipal
Income II, California Insured, California Income II, Maryland Bond, New Jersey Bond,
New York Insured and Virginia Bond issued additional shares under their dividend
reinvestment plans of 23,876, 7,680, 3,042, 7,208, 301, 1,848, 12,431 and 2,875,
respectively. Transactions in common shares of beneficial interest for the year
ended August 31, 2003, were as follows:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="25%" >&nbsp;</td>
<td width="2%">&nbsp;</td>
<td COLSPAN='5' align=center><font size="2"><b><font size="2">Shares
from</font></b></font></td>
<td width="3%" align=center>&nbsp;</td>
<td width="17%" align=center>&nbsp;</td>
</tr>
<tr valign=top><td >&nbsp;</td>
  <td >&nbsp;</td>
  <td COLSPAN='5' ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td >&nbsp;</td>
  </tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td width="14%" align=center><font size="2"><b>Initial</b></font></td>
<td width="4%">&nbsp;</td>
<td width="17%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="4%">&nbsp;</td>
<td width="14%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>&nbsp;</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Public Offering</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Underwriters&#146; Exercising</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Reinvestment</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Net Increase in</b></font></td>
</tr>
<tr valign=top><td align=left><font size="2"><b>Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>October 31, 2002</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>the Over-allotment Option</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>of Dividends</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Shares Outstanding</b></font></td>
</tr>
<tr valign=top><td ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  </tr>
<tr valign=top><td align=left><font size="2">Insured
Municipal</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">24,008,028</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,000,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">117,430</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">26,125,458</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Municipal Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">12,096</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">12,096</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Municipal Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">300,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">15,364</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">315,364</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">California
Insured</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,008,028</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">250,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,997</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,264,025</font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">840</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">840</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">California
Income II</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">150,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">16,385</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">166,385</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Florida Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,008,028</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">700,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,795</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">8,718,823</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Florida Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,232</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">1,232</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Maryland Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,240</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,240</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">New Jersey
Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,212</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">5,212</font></td>
</tr>
<tr valign=top><td align=left><font size="2">New York Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,008,028</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">400,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">16,080</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">6,424,108</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">New York Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
</tr>
<tr valign=top><td align=left><font size="2">New York Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">75,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,240</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">77,240</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Virginia Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,017</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,017</font></td>
</tr>
</table>

<p><font size="2">Offering costs incurred in connection
  with the Trusts&#146; offering of common shares have been charged against the
  proceeds from the initial common share offering of the common shares were as
  follows:</font>
</p>
<table width="50%" border="0" cellpadding="0" cellspacing="0">
  <tr valign=top>
    <td width="54%" align=left><font size="2"><b>Trust</b></font></td>
    <td width="15%">&nbsp;</td>
    <td width="31%" align=center><font size="2"><b>Offering Costs</b></font></td>
  </tr>
  <tr valign=top>
    <td ><hr align="left" width="50" size=2 noshade>
</td>
    <td >&nbsp;</td>
    <td ><hr noshade size=2></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Insured Municipal</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">$765,000</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">California Insured</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">142,500</font></td>
  </tr>
  <tr valign=top>
    <td align=left><font size="2">Florida Insured</font></td>
    <td>&nbsp;</td>
    <td align=right><font size="2">246,000</font></td>
  </tr>
  <tr valign=top>
    <td align=left bgcolor="#DDDDDD"><font size="2">New York Insured</font></td>
    <td bgcolor="#DDDDDD">&nbsp;</td>
    <td align=right bgcolor="#DDDDDD"><font size="2">177,000</font></td>
  </tr>
</table>
<p align='justify'>
<p align='justify'><font size="2">As of February 29, 2004, each Trust had the following
  series of preferred shares outstanding as listed in the table below. The preferred
  shares have a liquidation value of $25,000 per share plus any accumulated unpaid
  dividends.</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="26%" align=left><font size="2"><b><font size="2">Trust</font></b></font></td>
<td width="7%" align=center><font size="2"><b>Series</b></font></td>
<td width="2%">&nbsp;</td>
<td width="7%" align=center><font size="2"><b>Shares</b></font></td>
<td width="7%">&nbsp;</td>
<td width="22%" align=left><font size="2"><b>Trust</b></font></td>
<td width="0%">&nbsp;</td>
<td width="9%" align=center><font size="2"><b>Series</b></font></td>
<td width="0%">&nbsp;</td>
<td width="10%" align=center><font size="2"><b>Shares</b></font></td>

</tr>
<tr valign=top><td ><hr align="left" width="50" size=2 noshade></td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  </tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Insured
Municipal</font></td>
<td align=right><font size="2">M7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,053</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">T7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,439</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td align=right><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,053</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,439</font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">&nbsp;</font></td>
<td align=right><font size="2">F7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,053</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">M7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">3,040</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Municipal Bond</font></td>
<td align=right><font size="2">T7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,810</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">W7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,191</font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">&nbsp;</font></td>
<td align=right><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,810</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">720</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Municipal Income II</font></td>
<td align=right><font size="2">M7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,055</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">M7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">809</font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">&nbsp;</font></td>
<td align=right><font size="2">T7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,056</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,240</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td align=right><font size="2">W7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,055</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">T7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">968</font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">&nbsp;</font></td>
<td align=right><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,056</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">W7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,786</font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Insured</font></td>
<td align=right><font size="2">F7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,860</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Virginia Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">541</font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">California
Bond</font></td>
<td align=right><font size="2">F7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1,199</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=right><font >&nbsp;</font></table>

<p><p><p align='center'>69
<HR noshade size=4><PAGE>

<p>
<font size="2">Underwriting discounts and offering costs incurred in connection
with the preferred share offerings for the period ended February 29, 2004, and the
year ended August 31, 2003 have been charged to paid-in capital in excess of par
of the common shares as follows.</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="23%" >&nbsp;</td>
<td width="3%">&nbsp;</td>
<td width="13%" align=center><font size="2"><b><font size="2">Underwriting</font></b></font></td>
<td width="2%">&nbsp;</td>
<td width="8%" align=center><font size="2"><b>Offering</b></font></td>
<td width="3%">&nbsp;</td>
<td width="18%" align=left><font size="2"><b>&nbsp;</b></font></td>
<td width="2%">&nbsp;</td>
<td width="14%" align=center><font size="2"><b>Underwriting</b></font></td>
<td width="2%">&nbsp;</td>
<td width="12%" align=center><font size="2"><b>Offering</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Discount</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Cost</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Discount</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Cost</b></font></td>
</tr>
<tr valign=top>
  <td ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td align=left><font size="2">Insured
Municipal</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,289,750</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">369,482</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">28,492</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Municipal Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">(128,162)</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Maryland Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">&#151;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">50,675</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Municipal Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2,055,500</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">239,168</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">48,427</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">California
Insured</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">465,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">144,518</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New York Insured</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">560,000</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">151,970</font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">21,849</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">37,459</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">California
Income II</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">719,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">129,975</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New York Income II</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">446,500</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">120,782</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Florida Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">760,000</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">184,848</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Virginia Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">&#151;</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">58,033</font></table>

<p align='justify'><font size="2">Dividends on seven-day preferred shares are
    cumulative at a rate which is reset every seven days based on the results
    of an auction. The
dividend ranges on the preferred shares for each of the Trusts for the period
    ended February 29, 2004, were as follows:</font>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0"><tr valign=top><td width="26%" align=left><font size="2"><b><font size="2">Trust</font></b></font></td>
<td width="2%">&nbsp;</td>
<td width="10%" align=center><font size="2"><b>Low</b></font></td>
<td width="3%">&nbsp;</td>
<td width="8%" align=center><font size="2"><b>High</b></font></td>
<td width="3%">&nbsp;</td>
<td width="22%" align=left><font size="2"><b>Trust</b></font></td>
<td width="1%">&nbsp;</td>
<td width="10%" align=center><font size="2"><b>Low</b></font></td>
<td width="3%">&nbsp;</td>
<td width="12%" align=center><font size="2"><b>High</b></font></td>

</tr>
<tr valign=top><td ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Insured
Municipal</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.63%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.30%</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.70%</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.40%</font></td>
</tr>
<tr valign=top><td align=left><font size="2">Municipal Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.45 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.35 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.60 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.30 </font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Municipal Income
II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.45 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.40 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.40 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">2.10 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.54 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.01 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.45 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.20 </font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">California
Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.40 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.93 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.40 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.90 </font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.50 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.40 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Income II</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.80 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.10 </font></td>
</tr>
<tr valign=top bgcolor='#DDDDDD'><td align=left><font size="2">Florida Insured</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.75 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.97 </font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Virginia Bond</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">0.40 </font></td>
<td>&nbsp;</td>
<td align=right><font size="2">1.03</font></td>
</tr></table>

<p align='justify'><font size="2">A Trust may not declare dividends or make other
distributions on common shares or purchase any such shares if, at the time of the
declaration, distribution or purchase, asset coverage with respect to the outstanding
preferred shares would be less than 200%.
</font><p align='justify'><font size="2">The preferred shares are redeemable at
the option of each Trust, in whole or in part, on any dividend payment date at $25,000
per share plus any accumulated unpaid dividends whether or not declared. The preferred
shares are also subject to mandatory redemption at $25,000 per share plus any accumulated
or unpaid dividends, whether or not declared, if certain requirements relating to
the composition of the assets and liabilities of a Trust, as set forth in each Trust&#146;s
Declaration of Trust, are not satisfied.
</font><p align='justify'><font size="2">The holders of preferred shares have voting
rights equal to the holders of common shares (one vote per share) and will vote
together with holders of common shares as a single class. However, holders of preferred
shares, voting as a separate class, are also entitled to elect two Trustees for
each Trust. In addition, the Investment Company Act of 1940, as amended, requires
that along with approval by shareholders that might otherwise be required, the approval
of the holders of a majority of any outstanding preferred shares, voting separately
as a class would be required to (a) adopt any plan of reorganization that would
adversely affect the preferred shares, (b) change a Trust&#146;s subclassification
as a closed-end investment company or change its fundamental investment restrictions
and (c) change its business so as to cease to be an investment company.
</font><p align='justify'><p><p><p><p align='center'>70
<HR noshade size=4><PAGE>

<p>
<p><font size="3"><b>Note 6. Dividends</b></font><p><font size="2">Subsequent
to February 29, 2004, the Board of each Trust declared dividends from undistributed
earnings per common share payable April 1, 2004, to shareholders of record on March
15, 2004. The per share common dividends declared were as follows:
</font>

<p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="26%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="19%" align=center><font size="2"><b><font size="2">Common
Dividend</font></b></font></td>
<td width="5%">&nbsp;</td>
<td width="21%" align=left><font size="2"><b>&nbsp;</b></font></td>
<td width="11%">&nbsp;</td>
<td width="18%" align=center><font size="2"><b>Common Dividend</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Per Share</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Per Share</b></font></td>
</tr>
<tr valign=top>
  <td height="19" ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td align=left><font size="2">Insured
Municipal</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2">$0.078125 </font></div></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Bond</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2"> 0.077808 </font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Municipal Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2"> 0.086375 </font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Maryland Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2"> 0.071350 </font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">Municipal Income II</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2"> 0.083750 </font></div></td>
<td>&nbsp;</td>
<td align=left><font size="2">New Jersey Bond</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2"> 0.078582 </font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">California
Insured</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2"> 0.075000 </font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New York Insured</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2"> 0.075000 </font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">California Bond</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2"> 0.079656 </font></div></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Bond</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2"> 0.077099 </font></div></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">California
Income II</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2"> 0.081250 </font></div></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New York Income II</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><div align="center"><font size="2"> 0.078750 </font></div></td>
</tr>
<tr valign=top><td align=left><font size="2">Florida Insured</font></td>
<td>&nbsp;</td>
<td align=right><div align="center"><font size="2"> 0.075000 </font></div></td>
<td>&nbsp;</td>
<td align=left><div align="left"><font size="2">Virgina Bond</font></div></td><td><div align="center"><font size="2"></font></div></td><td><div align="center"><font size="2">0.072428</font></div></td></tr></table>
<p align='justify'><font size="2">The dividends declared on preferred shares
for the period March 1, 2004 to March 31, 2004, for each of the Trusts were as follows:
</font>
<p align='justify'>
<p></p>
<p><p><table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign=top><td width="27%" >&nbsp;</td>
<td width="0%">&nbsp;</td>
<td width="8%" align=center><font size="2">&nbsp;</font></td>
<td width="2%">&nbsp;</td>
<td width="10%" align=center><font size="2"><b>Dividends</b></font></td>
<td width="4%">&nbsp;</td>
<td width="25%" align=left><font size="2"><b>&nbsp;</b></font></td>
<td width="0%">&nbsp;</td>
<td width="8%" align=center><font size="2"><b>&nbsp;</b></font></td>
<td width="4%">&nbsp;</td>
<td width="12%" align=center><font size="2"><b>Dividends</b></font></td>
</tr>
<tr valign=top>
  <td align=left><font size="2"><b>Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Series</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Declared</b></font></td>
<td>&nbsp;</td>
<td align=left><font size="2"><b>Trust</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Series</b></font></td>
<td>&nbsp;</td>
<td align=center><font size="2"><b>Declared</b></font></td>
</tr>
<tr valign=top>
  <td ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr align="left" width="50" size=2 noshade></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
  <td >&nbsp;</td>
  <td ><hr noshade size=2></td>
</tr>
<tr valign=top><td align=left><font size="2">Insured
Municipal</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">M7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$66,647</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">California Income II</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">T7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">$28,305</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">R7</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">47,525</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">R7</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">22,434</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">F7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">66,586</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Florida Insured</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">M7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">52,622</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Municipal Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">T7</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">33,612</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Florida Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">W7</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">17,496</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">30,535</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">Maryland Bond</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">10,109</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">Municipal Income
II</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">M7</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">42,497</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New Jersey Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">M7</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">14,950</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">T7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">41,449</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Insured</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">35,034</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">&nbsp;</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">W7</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">34,503</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">New York Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">T7</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">19,089</font></td>
</tr>
<tr valign=top><td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">R7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">31,169</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">New York Income II</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">W7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">24,915</font></td>
</tr>
<tr valign=top><td align=left bgcolor="#DDDDDD"><font size="2">California
Insured</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">F7</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">38,242</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=left bgcolor="#DDDDDD"><font size="2">Virginia Bond</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=center bgcolor="#DDDDDD"><font size="2">R7</font></td>
<td bgcolor="#DDDDDD">&nbsp;</td>
<td align=right bgcolor="#DDDDDD"><font size="2">4,317</font></td>
</tr>
<tr valign=top><td align=left><font size="2">California Bond</font></td>
<td>&nbsp;</td>
<td align=center><font size="2">F7</font></td>
<td>&nbsp;</td>
<td align=right><font size="2">24,136</font></td>
<td>&nbsp;</td>
<td align=left><font size="2">&nbsp;</font></td>
<td>&nbsp;</td>
<td align=center><font >&nbsp;</font></table>
<p>


<p align='center'>71
<HR noshade size=4><PAGE><br>
<p align="center">
<font size="3"><b>DIVIDEND REINVESTMENT PLANS</b></font>
<hr noshade>
<p align='justify'><font size="2">Pursuant to each Trust&#146;s Dividend Reinvestment
Plan (the &#147;Plan&#148;), common shareholders are automatically enrolled to have
all <br>distributions of dividends and capital gains reinvested by EquiServe Trust
Company, N.A. (the &#147;Plan Agent&#148;) in the respective Trust&#146;s shares
pursuant to the Plan. Shareholders who elect not to participate in the Plan will
receive all distributions in cash paid by check and mailed directly to the shareholders
of record (or if the shares are held in street or other nominee name, then to the
nominee) by the Plan Agent.
</font><p align='justify'><font size="2">The Plan Agent serves as agent for the
shareholders in administering the Plan. After a Trust declares a dividend or determines
to make a capital gain distribution, the Plan Agent will acquire shares for the
participants&#146; accounts, depending upon the circumstances described below, either
(i) through receipt of unissued but authorized shares from the Trust (&#147;newly
issued shares&#148;) or (ii) by purchase of outstanding shares on the open market,
on the Trust&#146;s primary exchange or elsewhere (&#147;open-market purchases&#148;).
If, on the dividend payment date, the net asset value per share (&#147;NAV&#148;)
is equal to or less than the market price per share plus estimated brokerage commissions
(such condition being referred to herein as &#147;market premium&#148;), the Plan
Agent will invest the dividend amount in newly issued shares on behalf of the participants.
The number of newly issued shares to be credited to each participant&#146;s account
will be determined by dividing the dollar amount of the dividend by the NAV on the
date the shares are issued. However, if the NAV is less than 95% of the market price
on the payment date, the dollar amount of the dividend will be divided by 95% of
the market price on the payment date. If, on the dividend payment date, the NAV
is greater than the market value per share plus estimated brokerage commissions
(such condition being referred to herein as &#147;market discount&#148;), the Plan
Agent will invest the dividend amount in shares acquired on behalf of the participants
in open-market purchases.
</font><p align='justify'><font size="2">Participation in the Plan is completely
voluntary and may be terminated or resumed at any time without penalty by notice
if received and processed by the Plan Administrator prior to the dividend record
date; otherwise such termination or resumption will be effective with respect to
any subsequently declared dividend or other distribution.
</font><p align='justify'><font size="2">The Plan Agent&#146;s fees for the handling
of the reinvestment of dividends and distributions will be paid by each Trust. However,
each participant will pay a pro rata share of brokerage commissions incurred with
respect to the Plan Agent&#146;s open market purchases in connection with the reinvestment
of dividends and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any Federal income tax that may be payable on such
dividends or distributions.
</font><p align='justify'><font size="2">Each Trust reserves the right to amend
or terminate the Plan. There is no direct service charge to participants in the
Plan; however, each Trust reserves the right to amend the Plan to include a service
charge payable by the participants. Participants that request a sale of shares through
the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage
commission. All correspondence concerning the Plan should be directed to the Plan
Agent at 150 Royall Street, Canton, MA 02021, or by calling (800) 699-1BFM.
</font><p align='center'><font size="3"><b>ADDITIONAL INFORMATION (</b><b>unaudited</b>)
</font><hr noshade>
<p align='justify'><font size="2">Quarterly performance and other information regarding
the Trusts may be found on BlackRock&#146;s website, which can be accessed at http://www.blackrock.com/funds/cefunds/index.html.
This reference to BlackRock&#146;s website is intended to allow investors public
access to <br>information regarding the Trusts and does not, and is not intended,
to incorporate BlackRock&#146;s website into this report.
</font><p align='justify'><font size="2">Certain of the officers of the Trusts listed
on the inside back cover of this Report to Shareholders are also officers of the
Advisor or Sub-Advisor. They serve in the following capacities for the Advisor or
Sub-Advisor: Robert S. Kapito&#151;Director and Vice Chairman of the Advisor and
the Sub-Advisor, Kevin M. Klingert, Henry Gabbay and Anne Ackerley&#151;Managing
Directors of the Advisor and the Sub-Advisor, Richard M. Shea and James Kong&#151;Managing
Directors of the Sub-Advisor, Vincent B. Tritto&#151;Director of the Sub-Advisor,
and Brian P. Kindelan&#151;Director of the Advisor.</font>
<p align='justify'><p><p><p><p align='center'>72
<HR noshade size=4><PAGE>
<p align="center"><font size="6">BlackRock Closed-End Funds</font>
<hr noshade>
<table width="100%" border="0">
  <tr>
    <td width="40%" valign="top"><p><font size="3">Trustees<br>
    </font><font size="2">Ralph L. Schlosstein, <i>Chairman<br>
    </i></font><font size="2">Andrew F. Brimmer<br>
    </font><font size="2">Richard E. Cavanagh<br>
    </font><font size="2">Kent Dixon<br>
    </font><font size="2">Frank J. Fabozzi<br>
    </font><font size="2">Robert S. Kapito<br>
    </font><font size="2">James Clayburn La Force, Jr.<br>
    </font><font size="2">Walter F. Mondale </font>

      <p><font size="3">Officers<br>
      </font><font size="2">Robert S. Kapito, <i>President<br>
      </i></font><font size="2">Henry Gabbay, <i>Treasurer<br>
      </i></font><font size="2">Anne Ackerley, <i>Vice President<br>
      </i></font><font size="2">Kevin M. Klingert, <i>Vice President<br>
      </i></font><font size="2">Richard M. Shea, <i>Vice President/Tax<br>
      </i></font><font size="2">James Kong, <i>Assistant Treasurer<br>
      </i></font><font size="2">Vincent B. Tritto, <i>Secretary<br>
      </i></font><font size="2">Brian P. Kindelan, <i>Assistant Secretary</i> </font>
      <p><font size="3">Investment Advisor<br>
      </font><font size="2">BlackRock Advisors, Inc.<br>
      </font><font size="2">100 Bellevue Parkway<br>
      </font><font size="2">Wilmington, DE 19809<br>
      </font><font size="2">(800) 227-7BFM </font>

      <p><font size="3">Sub-Advisor<br>
      </font><font size="2">BlackRock Financial Management, Inc.<br>
      </font><font size="2">40 East 52nd Street<br>
      </font><font size="2">New York, NY 10022 </font>

      <p><font size="3">Custodian<br>
      </font><font size="2">State Street Bank and Trust Company<br>
    </font><font size="2">225 Franklin Street<br>
    </font><font size="2">Boston, MA 02110</font></td>
    <td width="60%"><p align='justify'><font size="3">Transfer Agent<br>
    </font><font size="2">EquiServe Trust Company, N.A.<br>
    </font><font size="2">150 Royall Street<br>
    </font><font size="2">Canton, MA 02021<br>
    </font><font size="2">(800) 699-1BFM </font>
        <p><font size="3">Auction Agent</font><font size="2"><sup>1<br>
        </sup></font><font size="2">Bank of New York<br>
        </font><font size="2">100 Church Street, 8th Floor<br>
      </font><font size="2">New York, NY 10286</font>
        <p><font size="3">Auction Agent</font><font size="2"><sup>2<br>
        </sup></font><font size="2">Deutsche Bank Trust Company Americas<br>
        </font><font size="2">60 Wall Street, 27th Floor<br>
        </font><font size="2">New York, NY 10005 </font>
      <p><font size="3">Independent Accountants<br>
      </font><font size="2">Deloitte &amp; Touche
          LLP<br>
      </font><font size="2">200 Berkeley Street<br>
      </font><font size="2">Boston, MA 02116 </font>
      <p><font size="3">Legal Counsel<br>
      </font><font size="2">Skadden, Arps, Slate,
          Meagher &amp; Flom LLP<br>
      </font><font size="2">Four Times Square<br>
      </font><font size="2">New York, NY 10036 </font>
      <p><font size="3">Legal Counsel &#150; Independent Trustees<br>
      </font><font size="2">Debevoise &amp; Plimpton,
          LLP<br>
      </font><font size="2">919 Third Avenue<br>
      </font><font size="2">New York, NY 10022 </font>
      <p align='justify'><font size="2">This report is for shareholder information.
          This is not a prospectus intended for use in the purchase or sale
          of Trust shares. Statements and other information contained in this
          report are as dated and are subject to
  change. </font>
      <p align='justify'><font size="2">BlackRock Closed-End Funds<br>
      </font><font size="2">c/o BlackRock Advisors, Inc.<br>
      </font><font size="2">100 Bellevue Parkway<br>
    </font><font size="2">Wilmington, DE 19809<br>
    </font><font size="2">(800) 227-7BFM</font>     </td>
  </tr>
</table>
<hr align="left" width="150" size="1" noshade>
<p align='justify'><font size="2"><sup>1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</sup>For
    the Insured Trusts and Bond Trusts. </font>
<p align='justify'><font size="2"><sup>2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</sup>For
    the Income II Trusts. </font>
<p>
<p><font size="2">The
Trusts will mail only one copy of shareholder documents, including annual and semi-annual
reports and proxy statements, to shareholders with multiple accounts at the same
address. This practice is commonly called &#147;householding&#148; and is intended
to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings
of your shareholder documents may be householded indefinitely unless you instruct
us otherwise. If you do not want the mailing of these documents to be combined with
those for other members of your household, please contact the Trusts at (800) 227-7BFM.
</font><p align='justify'><font size="2">The Trusts have delegated to the Advisor
the voting of proxies relating to their voting securities pursuant to the Advisor&#146;s
proxy voting policies and procedures. You may obtain a copy of these proxy voting
policies and procedures, without charge, by calling (800) 699-1236. These policies
and procedures are also available on the website of the Securities and Exchange
Commission at http://www.sec.gov.</font><p>
<HR noshade size=4><PAGE>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>


<table width="100%" border="0">
  <tr>
    <td width="41%"><font size="1">This report is for shareholder information. This is not
        a prospectus intended for use in the purchase or sale of Trust shares.
        Statements and other information contained in this report are as dated
        and are subject to change.<br>
<br>
CEF-SEMI-1</font></td>
    <td width="59%"><div align="right"><img src="cbr-blk.jpg"></div></td>
  </tr>
</table>
<HR noshade size=4><PAGE>
<font size="2">
<p>&nbsp;</p>
<p>ITEM 2. CODE OF ETHICS.<br>
  Not applicable for semi-annual reports.</p>
<p>ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.<br>
  Not applicable for semi-annual reports.</p>
<p>ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.<br>
  Not applicable for semi-annual reports.</p>
<p>ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.<br>
  Not applicable for semi-annual reports.</p>
<p>ITEM 6. SCHEDULE OF INVESTMENTS.<br>
  Not applicable for reports for periods ending on or before July 9, 2004.</p>
<p>ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END<br>
  MANAGEMENT INVESTMENT COMPANIES. <br>
  Not applicable for semi-annual reports.</p>
<p>ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND<br>
  AFFILIATED PURCHASERS.<br>
  Not applicable for reports covering periods ending on or before June 15, 2004.</p>
<p>ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.<br>
  Not applicable.</p>
<p>ITEM 10. CONTROLS AND PROCEDURES.</p>
</font>

<p><font size="2">(a) The Registrant's principal executive officer and principal financial officer
  have evaluated the Registrant's disclosure controls and procedures within 90
  days of this filing and have concluded that the Registrant's disclosure controls
  and procedures are effective, as of a date, in ensuring that information required
  to be disclosed by the registrant in this Form N-CSR was recorded, processed,
  summarized, and reported timely.</font></p>
<p><font size="2">(b) The Registrant's principal executive officer and principal financial officer
  are aware of no changes in the Registrant's internal control over financial
  reporting that occurred during the Registrant's most recent fiscal half-year
  that has materially affected, or is reasonably likely to materially affect,
  the Registrant's internal control over financial reporting.</font></p>
<p><font size="2">ITEM 11. EXHIBITS.</font></p>
<p><font size="2">(a)(1) Not applicable.</font></p>
<p><font size="2">(a)(2) Separate certifications of Principal Executive and Financial Officers
  pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></p>
<p><font size="2">(a)(3) Not applicable.</font></p>
<p><font size="2">(b) Certification of Principal Executive Financial Officer pursuant to Section
  906 of the Sarbanes-Oxley Act of 2002.</font></p>
<p></p>
<p align="center"> <font size="2">2</font></p>
<HR noshade size=4><PAGE>
<div align="center">
  <p>&nbsp;</p>
  <p><strong>SIGNATURES
  </strong></p>
</div>
<p> <font size="2">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.</font></p>
<p><font size="2">(Registrant) &nbsp;&nbsp;&nbsp;<strong>BlackRock Municipal
    Income Trust II<br>
  </strong></font><font size="2"><br>
  </font></p>
<p><font size="2">By: /s/ Henry Gabbay</font><br>
</font><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;----------------------------------------------------------------------------------------------------------------<br>
  Name: Henry Gabbay<br>
  Title: Treasurer<br>
Date: May 6, 2004</font></p>
<p><font size="2"> Pursuant to the requirements of the Securities Exchange Act of 1934 and the
  Investment Company Act of 1940, this report has been signed by the following
  persons on behalf of the registrant and in the capacities and on the dates
  indicated.</font></p>
<p></p>
<p><font size="2">By: /s/ Robert S. Kapito<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;----------------------------------------------------------------------------------------------------------------<br>
  Name: Robert S. Kapito<br>
  Title: Principal Executive Officer<br>
  Date: May 6, 2004</font></p>
<p></p>
<p><font size="2">By: /s/ Henry Gabbay<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;----------------------------------------------------------------------------------------------------------------<br>
  Name: Henry Gabbay<br>
  Title: Principal Financial Officer<br>
  Date: May 6, 2004</font></p>
<p align="center"><font size="2"><br>
  3</font></p>
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end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>5
<FILENAME>c32155_ex99-cert.htm
<TEXT>

<html>
<head>
<title>Untitled Document</title>

</head>

<body>
<div align="right"><strong><font size="2">EXHIBIT 99.CERT
</font></strong></div>
<p align="center"><font size="2"> <strong>CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER</strong></font></p>
<p align="center"><font size="2"><strong> CERTIFICATIONS</strong></font></p>
<p><font size="2">I, Robert Kapito, certify that:</font></p>
<p><font size="2">1. I have reviewed this report on Form N-CSR of BlackRock Municipal
     Income Trust II;</font></p>
<p><font size="2">2. Based on my knowledge, this report does not contain any untrue statement
  of a material fact or omit to state a material fact necessary to make the statements
  made, in light of the circumstances under which such statements were made,
  not misleading with respect to the period covered by this report;</font></p>
<p><font size="2">3. Based on my knowledge, the financial statements, and other financial
  information included in this report, fairly present in all material respects
    the
  financial condition, results of operations, changes in net assets, and cash
  flows (if the financial statements are required to include a statement of cash
  flows) of the registrant as of, and for, the periods presented in this report;</font></p>
<p><font size="2">4. The registrant's other certifying officer(s) and I are responsible for
  establishing and maintaining disclosure controls and procedures (as defined
    in
  Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant
  and
  have:</font></p>
<p><font size="2">a) Designed such disclosure controls and procedures, or caused such disclosure
  controls and procedures to be designed under our supervision, to ensure that
  material information relating to the registrant, including its consolidated
  subsidiaries, is made known to us by others within those entities, particularly
  during the period in which this report is being prepared;</font></p>
<p><font size="2">b) Evaluated the effectiveness of the registrant's disclosure controls and
  procedures and presented in this report our conclusions about the effectiveness
  of the disclosure controls and procedures, as of a date within 90 days prior
  to
  the filing date of this report based on such evaluation; and</font></p>
<p><font size="2">c) Disclosed in this report any change in the registrant's internal control
  over
  financial reporting (as defined in Rule 30a-3(d) under the Investment Company
  Act of 1940) that occurred during the registrant's most recent fiscal half-year
  (the registrant's second fiscal half-year in the case of an annual report)
  that
  has materially affected, or is reasonably likely to materially affect, the
  registrant's internal control over financial reporting; and</font></p>
<p><font size="2">5. The registrant's other certifying officer(s) and I have disclosed to the
  registrant's auditors and the audit committee of the registrant's board of
  directors (or persons performing the equivalent functions):</font></p>
<p><font size="2">a) All significant deficiencies and material weaknesses in the design or
  operation of internal controls over financial reporting which are reasonably
  likely to adversely affect the registrant's ability to record, process,
  summarize, and report financial information; and</font></p>
<p><font size="2">b) Any fraud, whether or not material, that involves management or other
  employees who have a significant role in the registrant's internal controls.</font></p>
<p>&nbsp;</p>
<table width="100%" border="0">
  <tr VALIGN="BOTTOM">
    <td width="51%" HEIGHT="30"><font size="2">Date: May 6, 2004</font></td>
    <td width="49%"><center>
    /s/
        <font size="2">Robert S. Kapito</font> <br>
        <font size="2">____________________________________</font>            </center></td>
  </tr>
  <tr VALIGN="TOP">
    <td>&nbsp;</td>
    <td><div align="center"><font size="2">Robert S. Kapito <br>
  Principal Executive Officer</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp; </p>
<p align="center"><font size="2">
  4</font></p>
<hr size="4" noshade><PAGE>
<p>&nbsp;</p>
<p align="right"><font size="2"> <strong>EXHIBIT 99.CERT</strong></font></p>
<p align="center"><font size="2"> <strong>CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER</strong></font></p>
<p align="center"><font size="2"><strong> CERTIFICATIONS</strong></font></p>
<p><font size="2">I, Henry Gabbay, certify that:</font></p>
<p><font size="2">1. I have reviewed this report on Form N-CSR of BlackRock
    Municipal Income Trust II;</font></p>
<p><font size="2">2. Based on my knowledge, this report does not contain any untrue statement
  of a
  material fact or omit to state a material fact necessary to make the statements
  made, in light of the circumstances under which such statements were made,
  not
  misleading with respect to the period covered by this report;</font></p>
<p><font size="2">3. Based on my knowledge, the financial statements, and other financial
  information included in this report, fairly present in all material respects
    the
  financial condition, results of operations, changes in net assets, and cash
  flows (if the financial statements are required to include a statement of cash
  flows) of the registrant as of, and for, the periods presented in this report;</font></p>
<p><font size="2">4. The registrant's other certifying officer(s) and I are responsible for
  establishing and maintaining disclosure controls and procedures (as defined
    in
  Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant
  and
  have:</font></p>
<p><font size="2">a) Designed such disclosure controls and procedures, or caused such disclosure
  controls and procedures to be designed under our supervision, to ensure that
  material information relating to the registrant, including its consolidated
  subsidiaries, is made known to us by others within those entities, particularly
  during the period in which this report is being prepared;</font></p>
<p><font size="2">b) Evaluated the effectiveness of the registrant's disclosure controls and
  procedures and presented in this report our conclusions about the effectiveness
  of the disclosure controls and procedures, as of a date within 90 days prior
  to
  the filing date of this report based on such evaluation; and</font></p>
<p><font size="2">c) Disclosed in this report any change in the registrant's internal control
  over
  financial reporting (as defined in Rule 30a-3(d) under the Investment Company
  Act of 1940) that occurred during the registrant's most recent fiscal half-year
  (the registrant's second fiscal half-year in the case of an annual report)
  that
  has materially affected, or is reasonably likely to materially affect, the
  registrant's internal control over financial reporting; and</font></p>
<p><font size="2">5. The registrant's other certifying officer(s) and I have disclosed to the
  registrant's auditors and the audit committee of the registrant's board of
  directors (or persons performing the equivalent functions):</font></p>
<p><font size="2">a) All significant deficiencies and material weaknesses in the design or
  operation of internal controls over financial reporting which are reasonably
  likely to adversely affect the registrant's ability to record, process,
  summarize, and report financial information; and</font></p>
<p><font size="2">b) Any fraud, whether or not material, that involves management or other
  employees who have a significant role in the registrant's internal controls.</font></p>
<p>&nbsp;</p>
<table width="100%" border="0">
  <tr VALIGN="BOTTOM">
    <td width="51%"><font size="2">Date: May 6, 2004</font></td>
    <td width="49%"><center>
    <font size="2">/s/ Henry Gabbay<br>
    ____________________________________    </font>
    </center></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="center"><font size="2">Henry Gabbay
              <br>
        Principal Financial Officer</font></div>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<p align="center"><font size="2">
5 </font></p>

</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.906.CERT
<SEQUENCE>6
<FILENAME>c32155_ex99-906cert.htm
<TEXT>
<html>
<head>
<title>Untitled Document</title>
</head>

<body>
<div align="center"><strong><font size="2">FORM OF SECTION 906 CERTIFICATION
</font></strong></div>
<p align="center"><font size="2"><strong> SECTION 906 CERTIFICATION</strong></font></p>
<p><font size="2">Pursuant to 18 U.S.C. ss. 1350, the undersigned officers of
    BlackRock  Municipal Income Trust II (the &quot;Company&quot;), hereby certifies,
    to the best of their knowledge, that the Company's Report on Form N-CSR for
    the period
  ended February 29, 2004, (the &quot;Report&quot;) fully complies with the requirements
  of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of
  1934 and that the information contained in the Report fairly presents, in all
  material respects, the financial condition and results of operations of the
  Company.</font></p>
<p><font size="2">Dated:&nbsp;&nbsp;May 6, 2004</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font size="2"><br>
  <font size="2">/s/ Robert S. Kapito</font><br>
_______________________________________<br>
  <br>
  Name: Robert S. Kapito<br>
  Title: Principal Executive Officer</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><font size="2"><br>
<font size="2">/s/ Henry Gabbay</font><br>
_______________________________________<br>
  <br>
  Name: Henry Gabbay<br>
  Title: Principal Financial Officer</font><br>
</p>
</body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
